STRATEGIC

MANAGEMENT

Professor:
Oscar Gil
TODAY:
Strategic Purpose:
1. Corporate Governance
2. Business strategy
3. Key Players
4. Stakeholder (Power Influence Matrix)
5. Examples
 ORGANIZATION
What is an organization:
• A set-up where individuals from diverse backgrounds, different educational qualifications and varied interests
come together to work towards a common goal is called an organization.
• Spriegel, “An organization refers to the relationship between the various factors present in a given endeavor, it
concerns itself primarily with the internal relationships within the company such as responsibilities of
personnel, arrangement and grouping of products or services; and from the standpoint of the enterprise,
organization is the structural relationship between the various factors in the enterprise”.

What is the function of an organization:

• An organization is designed to accomplish predefined goals and objectives through its parts - organization units
comprised of people.
• ​Once organizational purpose/mission, strategy - corporate strategy, business strategy and operations strategy -
and values are clear, the organization can be structured in such a way that roles and functions are clearly
defined and differentiated, lines of communications and accountability untangled, and decision-making
procedures transparent and functional.
PURPOSE OF AN ORGANIZATION
 BUSINESS STRATEGY
Business strategy is a clear set of plans, actions and goals that outlines how a business will compete in a particular market, or markets, with a
product or number of products or services.
A business strategy must take into account a number of factors including the market, competitors, and the business environment, as well as the
company's structure, strengths and weaknesses.
It should also be flexible enough to handle change.

Business is not the same today as it was yesterday - or what it will be tomorrow.
So any business strategy must be:
 Flexible
 Adaptable
 Anchored in up-to-date research
 ELEMENTS TO DRIVE A
GOOD BUSINESS STRATEGY
1. Leadership vision: A business strategy should come from the leaders. Having a clear
leadership vision is a key starting point. Where are we going and why?
2. Culture: Company culture is a key driver for implementing a successful business strategy.
Without a supportive culture, you will achieve nothing.
3. Strategic Marketing Plan: Without a clear marketing plan no business strategy can work.

4. Management: A strong and inspiring management team is necessary to implement your

business strategy.

5. Systems: Companies also need effective and efficient business systems behind in order to
successfully implement a business strategy.

6. Resources: A company needs plenty of resources within stakeholders.

 SOCIAL CHANGES
Business planning often takes into consideration objective factors such as potential material costs increases, changes in the labor supply and
levels of competition.
Social changes are harder to predict, but they can significantly affect future plans.
Understanding how people’s changing needs and wants can affect your company and will help stay abreast of trends and remain competitive in
your market.

Among history, business has being transformed by:

 Technology Use
 Working culture (hierarchy, working climate)
 Types of business (factoring, leasing)
 Environmental awareness
 Personal Priorities
BUSINESS STRATEGY
 BUSINESS STRATEGY
All organizations must have clearly defined a mission, a vision, and core values for a sustainable growth.

The mission statement describes what the organization needs to do now to achieve the vision.
Examples:

To spread the power of optimism

To reinvent how people share knowledge, tell stories, and inspire their audiences to
act.

To accelerate the world’s transition to sustainable energy

Spread ideas.
 BUSINESS STRATEGY
A vision statement is a statement of an organization’s overarching aspirations of what it hopes to achieve or to become.

 The vision statement describes what the organization needs to do now to achieve the vision.
Examples:

To make people happy.

Empower every person and every organization on the planet to achieve more.

To be a company that inspires and fulfills your curiosity.

To be the company that best understands and satisfies the product, service and self-fulfillment
needs of women—globally.

To create a better everyday life for the many people.

 BUSINESS STRATEGY
The values of a company are the beliefs, philosophies, and principles that drive your business.

Champion the mission

• We’re united with our community to create a world where anyone can belong anywhere.
Be a host
• We’re caring, open, and encouraging to everyone we work with.
Embrace the adventure
• We’re driven by curiosity, optimism, and the belief that every person can grow.
Be a cereal entrepreneur
• We’re determined and creative in transforming our bold ambitions into reality.

Dreams & Curiosity

• Pioneer the future with dreams and curiosity.
Diversity
• Pursue the creation of the very best by harnessing diversity and varying viewpoints.
Integrity and sincerity
• Earn the trust for the Sony brand through ethical and responsible conduct.
Sustainability
• Fulfill our stakeholder responsibilities through disciplined business practices.
BUSINESS STRATEGY
 KEY PLAYERS
Stakeholders
• Stakeholders can be internal or external to an organization.
• Internal stakeholders are people whose interest in a company comes
through a direct relationship, such as: employment, ownership, or
investment.
• External stakeholders are those who do not directly work with a company
but are affected somehow by the actions and outcomes of the business.
• Ex. Suppliers, creditors, and public groups are all considered external
stakeholders.

Stakeholders vs. Shareholders

• Stakeholders are bound to a company by some type of interest, usually for a longer term and for reasons of need.
• A shareholder has a financial interest and can sell a stock and buy different stock or keep the proceeds in cash; they do not have a long-
term need for the company and can get out at any time.
• Ex. If a company is performing poorly financially, the vendors in that company's supply chain might suffer if the company limits
production and no longer uses their services. Similarly, employees of the company might lose their jobs. However, shareholders of the
company can sell their stock and limit their losses.
KEY PLAYERS
 KEY PLAYERS ANALYSIS
Stakeholder mapping
It´s used to understand were you´re stakeholders are situated, the capacity of influence your company has on them,
and the influence degree, they have over the company.

https://www.youtube.com/watch?v=OkyVirNorAc

Stakeholder analysis
It´s used to prioritize your stakeholders and understand their role within the core business.

https://www.youtube.com/watch?v=G7NUm25yWAs
 THANKS!

See you next week!

Oscar Gil
Email: gilo@uninorte.edu.co