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MAN 4720

STRATEGIC MANAGEMENT
Session 1 – August 22, 2016

The three constraints


Time – What is the timeline for the project?
Money – What is the budget for the project?
Scope – What should the project accomplish?
The equation:

Time * Money = Scope
A change to one necessitates a change to at least one other

Step 1: Determining constraints  Time   Money   Set for you Each team has up to 5 members Scope   You control this (to some extent) Work Breakdown Structure (WBS) .

2 Write First Draft 1 Analyses 2 Formulation 3 Implement ation 1.3 Revise 1.Work Breakdown Structure Project 1.4 Collect Additional Data 1.5 Write Final Draft .1 Initial Research 1.

Step 2: Determine Milestones   What are the key deadlines? What are the key accomplishments along the way?  Enables you to track progress against a schedule  Noun-verb combo    “Outline Written” “Data Collected” “Final Document Submitted” .

1 Dependen cy Initial Research 10 Pierre 1.2 1.2 Write first draft 5 David 1.1.3.3 Revise as a group 3 Group 1.4 .5 Write Final Draft 3 Michelle 1.Step 3: Determine Schedule   Start with Work Breakdown Structure Insert milestones and deadlines with dependencies WBS # Task Description Time (Hrs) Assigned to 1 Analyses 1.1 1.4 Collect additional data 5 Michael 1.2 1.

1 Dependency Initial Research Jan 13 Jan 14 1.2 1.6 Analyses Complete Jan 19 Jan 19 1.5 Write Final Draft Jan 17 Jan 19 1.4 Collect additional data Jan 16 Jan 17 1.4 1.3.2 Write first draft Jan 14 Jan 15 1.3 Revise as a group Jan 15 Jan 16 1.1 1.Step 3 (continued)  Add Start/End Dates to tasks WBS # Task Description Begin End 1 Overview 1.5 .2 1. 1.

Task Interrelationships  Relationships among tasks Serial Step 1  Step 2 “Critical path”  Longest (duration) path to completion Parallel Step 1 Step 2 Step 3 .

RACI Matrix  Responsible    Accountable    Who is the ultimate authority (owner)? Only one person for each task Consulted   Who is responsible for doing it? Can be multiple people Who should provide their input/feedback/sign-off? Informed  Who needs to be kept in the loop? .

Example RACI matrix (From last year’s Great Capstone Case Competition) .

Agenda    Introductions and Syllabus Review Project Management Mastering Strategy: Art & Science   Strategic Management History of Strategic Management (next class session) .

We are ALL Strategists! One of Einstein’s strategies for personal efficiency was to wear similar clothing each day and rarely wear socks Photo source: Wikipedia .

” Source: .What is Strategy? The word strategy comes from the Greek verb stratego. meaning roughly “to plan the destruction of one’s enemies through effective use of resources.

why we have top management teams . what is strategic management?  Process organizations use to select and implement strategies  Sustainable competitive advantages  Create  Maintain   Create value for stakeholders Conceptually linear and iterative   Pretty messy in reality Ongoing process .So.

Strategic Management Process .

Good Strategy is Difficult  Difficult trade-offs     Short-term vs long-term Efficiency vs effectiveness What not to do Kernel of a good strategy    Diagnosis Guiding policy Coherent action plan .

Emergent.Intended. and Realized Strategies .

Intended Strategy  the strategy that an organization hopes to execute Usually described in detail within an organization’s strategic plan  Ex: fedex shipping packages  .

Emergent  an unplanned strategy that arises in response to unexpected opportunities and challenges  Ex: underwear for prisoners turned into gun cleaning clothes .

what the firm did in reaction to unexpected opportunities and challenges). what the firm planned to do).e. A nonrealized strategy refers to the abandoned parts of the intended strategy. and its emergent strategy (i.e. the parts of the intended strategy that the firm continues to pursue over time)..Realized   Realized strategies are a product of a firm’s intended strategy (i..e. the firm’s Deliberate strategy (i.. .

St ra te gi Tactical c Operational We need to implement a knowledge management system! How do we implement this? Who gets it first? Should David have access to the system? .Levels of Decision Making You are here.

5 P’s of Strategy Plan Ploy Pattern Position Persepective .

 A business model should be a central element of a firm’s strategic plan. Simply stated.Plan  A strategic plan is a carefully crafted set of steps that a firm intends to follow to be successful. a business model describes the process through which a firm hopes to earn profits  providing customers with a good or service more cheaply than they can create it themselves (economies of scale) .

Ploy  A strategic ploy is a specific move designed to outwit or trick competitors. Ploys often involve using creativity to enhance success .

Pattern    This view focuses on the extent to which a firm’s actions over time are consistent Apple is very consistent in its strategic pattern: It always responds to competitive challenges by innovating risks to following a pattern too closely: A consistent pattern can make a company predictable (a possibility that Apple must guard against in the years ahead) .

they often find themselves without the competitive positioning needed for long term success. When firms position themselves through unique goods and services customers value. a ploy. strategy as position considers a firm and its competitors position refers to a firm’s place in the industry relative to its competitors. deciding what a firm is not going to do is just as important to strategy as deciding what it is going to do .Position     Viewing strategy as a plan. business often thrives. In contrast. But when firms try to please everyone. and a pattern involve only the actions of a single firm. the next P.

Perspective  Perspective refers to how executives interpret the competitive landscape around them .