STRATEGIC MANAGEMENT

COURSE 204 – BUSINESS MANAGEMENT

1. WHY IS LEADERSHIP IMPORTANT IN STRATEGIC PLANNING?

For that matter, leadership is important in strategic planning for they are the one
that utilizes good strategic plans in the employees’ management so as to influence
them to achieve organizational change. Besides, the main objective of strategic
leadership is to attain strategic productivity. Moreover, in order to have strategic
leadership that is functional, it is relatively important to promote inventiveness and
creativity in the organization in order to realize its goals and objectives.

In relation to today’s business environment, it is imperative to acknowledge that it

is characterized by stiff competition. Consequently, it is therefore important for
business organizations to have proactive and reactive strategic plans that seek to
combat the competition.
Nevertheless, it is important that for these strategic plans to be implemented
properly there is need to have strategic leadership in the organization in order to
provide the much needed leadership. Strategic leadership is relevant in terms of
providing vision and to ensure that business’ objectives and mission is attained.
Therefore, this paper discusses approaches to strategic leadership as a way of
surviving in today’s business environment

2. DIFFERENTIATE LEADERSHIP AND STRATEGIC LEADERSHIP.

HOW DO THEY ACHIEVE THEIR INTENDED RESULT?

Leadership is the ability of an individual or a group of individuals to influence and

guide followers or other members of an organization. 
 Leadership involves making sound -- and sometimes difficult -- decisions, creating
and articulating a clear vision, establishing achievable goals and providing
followers with the knowledge and tools necessary to achieve those goals.

They achieve their intended result through communicating direction and strategy,
motivates and inspire, set stretch goals, the high integrity that inspires trust & most
importantly help others to grow.

On the other hand, Strategic leadership is one of the most popular styles of leadership
right now. It’s a model that has been proven successful for the vast majority of
departments and business genres. However, it’s not always the easiest to implement.
To be a strategic leader and achieve its intended result, you need to operate from an
open-minded perspective. You need to lean into the evolutionary shifts within your
business and allow the ebbs and flows to influence your trajectory. This type of
leadership might look chaotic to the outside eye. But flexibility is imperative because
it is the only way to sustain the twists and turns in business. Strategic leadership is a
powerful tool, but you have to be willing to embrace the wind and the waves as part
of your journey and get a bit messy. This leadership model is not a simple formula.
There isn’t a how-to model that you can follow from A-Z. However, it is one of the
only strategies that work, especially in 2020.

3. WHAT IS STRATEGIC MANAGEMENT AND LEADERSHIP?

Strategic management and leadership can be thought of as planning and execution,
respectively. A company cannot spend all of its time in the planning stage as it can lead
to paralysis by analysis. Simply doing things without any sense of direction can be just as
bad, and very often will lead an organization going down the wrong road. Strategic
Management is defined as the process by which organization’s objectives are set, policies
are developed and plans are laid out to achieve these objectives. This requires the
management to allocate resources to implement the plans. Essentially, this refers to the
top echelon of management in an organization which strives to provide the overall
direction of the whole enterprise to achieve their set targets and goals. Leadership within
an organization, in essence, is the action of leading a group of people or an organization,
in the sharing and communicating of a vision to a large group of people. Leadership often
comes in many different styles, accordingly to the varied situations. In this instance, these
styles could vary depending on the situation, objectives, and the group setting.
 4 TYPES OF STRATEGIC MANAGEMENT LEADERS
TYPES OF LEADERS
SILENT LEADERS-
are compassionate, understanding,
open and approachable and –most
importantly– they command their
team through earned respect rather
than force of character. There are
several key characteristics of the
silent leadership style. Again, these
traits will come naturally to some
more than others, but all can be
learnt.
QUESTIONING  Guide the direction of the
LEADERS- By asking
questions as a leader, you
also communicate that
questioning is important. You’ll
inspire people to identify new
opportunities and to ask for help 
when they need it.
HOW THEY ACHIEVE
THEIR GOALS
Delegating responsibilities is one of
the most basic pillars in any work
environment. It is not only an act of
recognition on the part of the
leader. It is also a priority strategy
with which to place trust in all the
teams in the organization to be
competitive, recognizing the unique
potential of each employee.
Distinctive traits such as calm also
appear in silent leadership. These
leaders have the ability not to get
upset even in high pressure
conditions, staying stoic and
transmitting that state to their
subordinates, that they will work
with the confidence that their
manager transmits to them.
From the calm, the leader will be
able to make more objective
decisions, without falling into
impulsiveness, and therefore
running less risk of making
mistakes when rushing with an
option that perhaps was not the
most successful, due to pressure.
conversation and focus the
discussion
Clarify what others have said to
improve understanding
 Improve decisions with better,
HOW THEY USE
THEIR APPROACHES
Personalities such as Gandhi, Rosa
Parks or Bill Gates, fit perfectly
into this profile.
They are identities that fall within
that very defining introversion of
silent leadership. They are men and
women who do not make excessive
noise, but who nevertheless leave
their mark and inspire us. That is
the key.
When employees feel like they
have the freedom to speak their
mind they are more likely to listen
themselves. Being a quiet leader
can create that safe space for the
group it is the way to keep healthy
communication flowing. Joseph L.
Badaracco Jr., a professor of
Business Ethics at the Harvard
Business School, stresses the
importance of tenacity in quiet
leaders. Committed leaders, even
quiet ones, can inspire action
through their perseverance and
loyalty.
 Catch yourself before
making a statement. Instead,
ask yourself what question
you could ask to leverage the
knowledge of others.
 Listen and dig deeper. Ask
 in-depth information from
people who may know more follow-up questions to get

 Formulate well-informed more information, clarify

decisions with input from other
perspectives to better define
issues
 Precipitate a decision by asking
for options and exactly what is
needed to decide
 Raise the level of thinking in
the organization, often to
broader, more strategic issues
 Help move from concepts and
discussions to action and
defined accountability
 Help focus on results and
outcomes
 Make people feel valued and
improve job satisfaction
 Solicit input from those who
may not typically speak up
 Improve organizational learning 
meaning and get to real
issues.
 Ask open-ended questions.
Do not ask “yes” or “no”
questions unless that is the
answer you want.
 Give up a bit of control.
Allowing others to respond
to questions may cause some
“wondering” on a topic, but
it is often useful in getting to
real issues.
Don’t get defensive. If the

 Inspire creativity and new ideas

direction your question takes

 Buy time to think

is not the one you
anticipated, suspend
 Help overcome wasted
authority. judgment and remain
 Allow confrontation without
making statements by inducing influenceable.
people to explain themselves
 Use the “rule of threes.” It is
helpful to ask for three
options, alternatives, actions,
etc. That way people do not
feel they have to have the
single, “right” response.

 Get comfortable with

silence. If you ask a
question, do not be the next
person to speak. If there is
silence in a discussion,
 others will begin to
participate.

ANSWERING
LEADERS
CONVERSATIONAL By being a: A performing
LEADERS- Conversational  Supportive Leader Conversational Leader
Leadership is a core process to attempts to reduce encourages and eases the
cultivate the collective employee stress and individual improvement of
intelligence needed to create frustration in the all the people with whom he
business and social value. The workplace. Therefore, the interacts; and the value of
areas of conversational typical conversations in the the personal development
empowerment As with other Support area could be is priceless for an
Authentic Leadership models, around easing change, organization, as self-
Conversational Leadership helping to solve conflicts or empowered and motivated
revolves around self-awareness, nudging towards better people are an example for
transparency, ethics, and a choices. the others, their positive
balanced relationship. This can imply being able to mindset is shared between
remove those obstacles that the whole group and it
prevent people from becomes a model that is
successfully doing their job, eventually followed by the
or even building and rest of the team.
maintaining good
relationships with peers The Conversational Leader
and employees. is the trigger of a chain
The Discover area boils reaction: he does the first
down to creating a deeper step when he leads,
understanding of the inspires, discovers or
unique needs of self and supports the others, but the
others. It may involve effects of his actions don’t
conversations about stop with the conversation.
onboarding a new The counterpart who’s
colleague, exploring new involved in an effective
possible strategic leadership conversation
approaches with the learns from it, he endorses
counterpart or aligning the transmitted values and
someone with the corporate he propagates them among
values and behavioral the rest of the team.
model.
The Lead area is involved
when it comes to managing
negotiations or delegating a
task, for instance. To fulfill
the objective in the first
case, the Conversational
 Leader has to fairly
represent his own
interest(s) and manage the
objections of the
counterpart.
In the latter case, the
objective is achieved by
assigning a task with clear
directions and providing all
information needed to
move ahead.

4. BEING A MANAGER, YOU ARE EXPECTED TO BE A CHANGE AGENT:

REASON BEHIND RETURN RESOURCE RESPONSIBL WHO MAKE THE

THE CHANGE REQUIRE S E FOR CHANGE
D REQUIRED CREATING
CHANGE

Outside These change This usually they offer options They They are not
Pressure agents work to results in the that are more are not members of the
Type- change possibility of radical than the members of company they are
Systems from examining many community might the trying to change
outside the different change accept company and use various
organization alternatives they are pressure tactics
trying to such as mass
change and demonstrations,
use various civil disobedience,
pressure and violence to
tactics accomplish their
objectives.

People- The focus of In order that the A manager The individual

Change- activity for this employee can employees of the
Technology type of change morale and certainly organization
Type agent is the motivation, assume the through the
individual. The including role of manager
major absenteeism, people-
assumption turnover, and change-
underlying this the quality of technology
orientation is work performed type and
that if well often do
individuals
change their
behavior, the
 organization
will also
change,
providing
enough people
within the
organization
change
Organization To focus their They will sensitivity Target
- attention on thoroughly training, team managers organizations or
Developmen internal analyze the building, and group
t processes such culture of the survey feedback
as intergroup targeted
relations, organization
communication
, and decision
making

Analysis-for- The focus of The organization uses operations Managers Employees of the
the-Top this change to improve its research, systems together organizations
Type agent is on output and to be analysis, policy with the IT
changing the efficient studies, and other Team
organizational forms of
structure so as analytical
to improve approaches
output and
efficiency

5. WHAT ARE THE IMPORTANT ROLES OF A CHANGE MANAGER?

 A change manager will play a key role in ensuring projects (change initiatives)
meet objectives on time and on budget by increasing employee adoption and
usage. This person will focus on the people side of change, including changes to
business processes, systems and technology, job roles and organization structures.

Roles of a Change Manager

The change manager will:

 Apply a structured methodology and lead change management activities

Apply a change management process and tools to create a strategy to support
adoption of the changes required by a project or initiative.

 Support communication efforts

Support the design, development, delivery and management of
communications.

 Assess the change impact

Conduct impact analyses, assess change readiness and identify key
stakeholders.

 Support training efforts

Provide input, document requirements and support the design and delivery of
training programs.

MANAGERIAL ECONOMICS
 COURSE 205

1. DEFINE MANAGERIAL ECONOMICS

Managerial economics is a discipline that combines economic theory with managerial

practice. It helps in covering the gap between the problems of logic and the problems of
policy.

It is the application of economics to decision-making. It’s an economics division that

bridges the gap between abstract theory and managerial practice. For identifying
problems, organizing knowledge, and assessing alternatives, it is focused on economic
analysis.

To quote Mansfield, “Managerial economics is concerned with the application of

economic concepts and economic analysis to the problems of formulating rational
managerial decisions. Spencer and Siegelman have defined the subject as “the
integration of economic theory with business practice for the purpose of facilitating
decision making and forward planning by management.”

2. GIVE US AN EXAMPLE OF MANAGERIAL ECONOMICS

PRICING CUSTOMER NEEDS
BUSINESS MODELS PRODUCTYIVITY
CAPITAL INVESTMENT COMPETITION
OPERATIONS QUALITY
DISTRIBUTION RISK
PROMOTION CUSTOMERS EXPERIENCE

3. ROLE OF MANAGERIAL ECONOMICS

  Studies Business Environment: Managerial economics properly
analyze the external environment within which the business operates.
These factors influence the working of the business and therefore should
be considered while taking any decisions and framing policies.
( economic scenario, government policies, price trends, national income
growth)
 Production Scheduling: Managerial economics manages and prepare
schedules for all production activities of business. It estimates all future
demands using various quantitative tools which helps in making
production plans.
 Control Cost: Controlling the cost is vital for achieving the desired
profitability and growth. Managerial economics estimates the cost of all
business activities and identify all those factors that cause variations in
cost from time to time. It aims at minimizing the cost through optimum
utilization of all resources.
 Set Prices: Setting the right price is a very challenging task for every
business organization. Managerial economics helps management in
fixing the correct price by supplying all information regarding
competitors pricing methods.
 Bring Coordination: Managerial economics brings coordination and
flexibility in all operations of the business. It supports effective decision
making by providing all relevant data using economic theories and
tools.
 Investment Analysis: Managerial economics ensures that all business
funds are allocated to profitable means. It properly analyzes the
profitability of all investment avenues before investing any amount into
it.

4. TYPES OF MANAGERIAL ECONOMICS

 LIBERAL MANAGERIALISM- In terms of decision-making, the

market is a free and democratic environment. Customers have a variety
of options to choose from. As a result, businesses must adapt their
strategies to meet the needs of customers and industry dynamics. It is
possible that if this is not done, the company will collapse. This is
referred to as liberal management.

 NORMATIVE - According to the normative view of managerial

economics, the administration’s decisions will be natural, based on real-
life experiences and practices. The choices represent a pragmatic
 approach to product design, forecasting, marketing, supply and demand
research, hiring, and everything else related to a company’s expansion.

 RADICAL- Coming up with revolutionary solutions is what radical

managerialism entails. When the traditional method of solving a
problem fails, radical managerialism might be the answer.

Nature of Managerial Economics 

 ARTS AND SCIENCE - For decision-making or problem-solving,

managerial economics necessitates a lot of critical thought and creative
skills. Some economists consider it a branch of science since it requires
the application of various economic concepts, strategies, and methods to
solve business problems.

 MICRO ECONOMICS- Managers in managerial economics typically

deal with issues specific to a single organization rather than the entire
economy. As a result, it is classified as a branch of microeconomics.
 USES OF MACRO ECONOMICS- A business operates in an external
environment, that is, it serves the consumer, which is a component of
the overall economy.
 MULTI DISCIPLINARY- It employs a variety of methods and
concepts from a variety of fields, including accounting, finance,
statistics, mathematics, manufacturing, operations analysis, human
resources, and marketing.
 PRESCRIPTIVE NORMATIVE- Its mission is to accomplish a set of
objectives and to deal with real-world issues or problems by putting in
place corrective steps.
 5. HOW IMPORTANT IS MANAGERIAL ECONOMICS?

 Helps in evaluating managerial policies – There are certain operational policies

of company which yield no return or are not at all important in altering certain
market conditions. It calls for timely evaluation of these policies so that there can
be solutions for budding obstacles in the way of business decision-making.
Managerial economics plays an active role in the evaluation and assessment of
certain managerial policies.

 Advantageous in business organization – Managerial economics is quite

beneficial when it comes to organizing and managing the tasks, events related to
the smooth functioning of business. It helps in taking the accurate decision related
to the business organization.

 Recognizes the economic strength and weakness – This significance of

managerial economics is of utmost value as it defines the perks and pitfalls of the
business economy. By exercising managerial economics the business managers
can be sure of certain activities that could affect the growth of business.

 Computing the economic relationship – There are certain business aspects like
income, profit, acquisitions, loss, demand elasticity etc. The relationship and
accord among these factors are estimated with the help of managerial economics.

 Makes business planning much easier – The managerial economics is immense

significant and essential in planning an appropriate prospect in order to achieve
rewarding results and operations. This business planning plays an important role in
connecting the tools of production and systems of operation. Through these
benefits we can easily apprehend the importance of managerial economics.

 Helps in managing the cost – Managerial economics offer a helping hand when it
comes to deciding the correct and appropriate way for operating a business. All
these decisions and arbitrations are possible when there is an active role and
exercise of managerial economics which automatically affects the decisions
related to cost control.
 Systemization of business activities – There are several business activities that
needs to be coordinated and managed in a systematic manner. Managerial
economics helps in coordination of activities related to business.

 Resolves problem related to business taxation – Managerial economics proves

to be the giant problem solving tool in various types of issues related to taxation in
the business.

 Helps in computing firm’s efficiency – Managerial economics helps the

business managers to measure the ability and efficiency of the firm.