Strategic

Business Leader

Revision

Sdanvi Shi
SBL Tutor Guru

29th June
 Webinar agenda

1. Strategic choices and Environmental analysis

2. Ethics

3. Corporate governance, Internal control and Risk management

4. Financial analysis

5. Technology

6. Change management

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 1. Strategic choices and environmental analysis

Portfolio analysis tool

1. Why？
2. what?
– Lifecycle analysis Introduction Growth Maturity Decline
– BCG matrix Question mark Stars Cash cow Dog
– Public portfolio matrix
3. Extend?
– BCG matrix Relative market share & Market growth rate
– Public portfolio matrix Ability& Need

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 1. Strategic choices and environmental analysis
Ansoff Matrix (growth strategy)
1. Why？
– Direction of growth
2. what?
Market penetration
– Product
Market development & Product development
– Market
3. Extend? Diversification – related & unrelated
– Identify
– Advantages and disadvantages Adding new risk & risk spreading(extend)

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 1. Strategic choices and environmental analysis
Methods of development
1. What?
– Organic
– M&A
– Franchising
2. Extend?
– Advantages and disadvantages

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 1. Strategic choices and environmental analysis

Competitive advantages
1. what?
– Cost leadership
– Differentiation
– No frills/ hybrid(clock)
2. Extend?
– How to maintain

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 1. Strategic choices and environmental analysis
Environmental analysis
1. General business environment – PESTEL

Political Economic Social Technological Environmental Legal

2. National environment – Diamond
Factor Demand Related industry Firm strategy, structure and rivalry Chance Government
3. Industry environment – 5 forces
Buyers Suppliers New entrants Substitutes Competition
4. Internal environment – Value chain
Inbounds Operations Outbounds Marketing & sales Services
HR Technology Procurement Infrastructure
5. SWOT
6. Evaluation of different options – SFA
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 2. Ethics
1. The two basic issues in ethical decision-making are :
• The right motive
• The right action
2. Tucker’s 5 question model Profit Legal Fair Right Sustainability
3. Corporate codes of ethics / Professional codes of ethics
Competence and due care Professional behaviour Integrity Confidentiality Objectivity
4. Corporate' social responsibilities
• CSR strategy
• Strategic CSR
5. Corporate citizenship: minimizing harm, maximizing benefit,
and being accountable and responsive to stakeholders.

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 2. Ethics
6. Environmental report
• Sustainability
• GRI
• Purposes and benefits
7. TBL accounting – profit people planet
8. Integrated report
• Use of and dependence on different resources
• Value creation process

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 3. Corporate governance
1. Main management styles
• Autocratic
• Democratic
2. NED
• Roles and benefits
• Independence
3. Firm structure & Board structure
• Unitary and multi-tier
• Refer to case

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 3. Corporate governance
Talent management
4. Nomination committee
• Attracting
• Size
• Subsequently identifying
• Balance
• Coaching in management and leadership skills
• Diversify
• 以结果为导向的有效沟通
• Succession and continuity
✓ With other 'talented' individuals
• Induction and leaving the board
✓ With senior management and board level executives
5. Remuneration committee
✓ With key organizational customers
• Policy setting
• CEO in the Talent management
• Package setting
✓ Lead the talent management
• Disclose ✓ Set the needs for talents
✓ Driving force in attracting talents

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 3. Corporate governance
6. Audit committee
• All NED with at least one financial expert
• Internal audit – whether need to have one & annual review
Scope, Authority, Resources and Independence

• Risk committee: NEDs and EDs

7. Risk management
• Identify the risks
• Risk management – TARA & risk appetite
• Internal controls(preventing and detecting) – aims & factors to be considered & challenges
• ALARP

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 4. Financial analysis
1. NPV
• Discounted cash flow
2. Payback period
• Cash flow (ignore time value)
• Ignore cash flow after payback period
3. Funding
• Cash retained
• Debt
• Equity (Venture)
4. Forecasting
• Internal focus; historical data; limited data
5. Scepticism (assumptions)
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 5. Technology
1. Big data
• 3Vs
• Cloud computing
• AI
• Benefits and challenges
2. Disruptive technology
• Fintech
• Cryptocurrency
• DLT
• Mobile technology

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 5. Technology
3. E-procurement and E-marketing
• Automating
• Benefits and risks

4. E-marketing
• 6Is
• 7Ps

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 6. Change management
1. Cultural web
symbol, story, organizational structure, power structure, control system, rituals and routines, paradigm
2. Process redesign
• Complexity => automate or not
Off-the-shelf vs bespoke
• Importance => outsource or not
• BPR(simplification, improvement)
3. Change management
• Prepare for change
• Implementing
• Not going back

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 PID
6. Change management
Project objectives
4. PID
Anticipated benefits
• Elements
• Business case Scope

• Post-implementation review Deliverables/outcomes

Constraints

Key stakeholders

Project team roles

Risk assessment

Cost estimates

Performance measurements

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 Any questions?

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 Thank you!

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