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Strategic Management: Module in

This document outlines the course learning outcomes and content for a module in strategic management. The 6 learning outcomes cover defining strategic management, explaining the strategic management process, understanding stakeholder management and corporate governance, analyzing social responsibility, realizing the need for empowerment, and reflecting on strategic goals. The module then covers analyzing the internal and external environment, formulating business, corporate, and international strategies, and implementing strategies through organizational design, leadership, and entrepreneurship.

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0% found this document useful (0 votes)
95 views17 pages

Strategic Management: Module in

This document outlines the course learning outcomes and content for a module in strategic management. The 6 learning outcomes cover defining strategic management, explaining the strategic management process, understanding stakeholder management and corporate governance, analyzing social responsibility, realizing the need for empowerment, and reflecting on strategic goals. The module then covers analyzing the internal and external environment, formulating business, corporate, and international strategies, and implementing strategies through organizational design, leadership, and entrepreneurship.

Uploaded by

Bea Joy Tomboc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE IN

Strategic Management

1
“If you know thyself, and
you know thy enemy, you
need not fear the result of a
hundred battles.” STRAMA
Sun Tzu (The Art of War)

COURSE LEARNING OUTCOMES


At the end of the module, you should be able
to:
1. State and discuss the definition of
strategic management and its four key
attributes;
2. Explain the strategic management process
and its three interrelated and principal
activities;
3. Understand the vital role of corporate
governance and stakeholder management, as
well as how” symbiosis” can be achieved
among an organization’s stakeholders;
4. Analyze the importance of social
responsibility, including environmental
sustainability, and how it can enhance a
corporation’s innovation strategy
5. Realize the need for greater
STRATEGIC empowerment throughout the
organization;

MANAGEMENT
6. Reflect on how an awareness of a hierarchy
of strategic goals can help an organization
achieve coherence in its strategic direction.
“If we know where we are and something
about how we got there, we might see where
we are trending – and if the outcomes which
lie naturally in our course are unacceptable,
to make timely change.”
– Abraham Lincoln

MODULE 1: Creating Competitive Advantages

Discussion Outline

We begin this module with a clever quote from Arthur Martinez, Sears’s
former chairman: “Today’s peacock is tomorrow’s feather duster” to help

turnover among the Fortune 500 firms over a period of time. With rapid changing technologies and
intensified global competition success can be temporary – recall the likes of Nokia, General Motors and
Encyclopedia Britannica to name a few. Achieving success in an industry—or even surviving—can be very
challenging for companies of any size. But to which do we blame the downfall of a company?

There are two perspectives of leadership that we can attribute the burden on: 1. “romantic” (where
leaders can have a significant impact on organizational outcomes), and 2. “external control” (where leaders
are highly constrained by factors beyond their control). For example, concerning the pandemic related to
Covid 19, so many companies could not help but declare bankruptcy because these are forces beyond their
control.
However, there are also those companies that can still sustain their operations for a longer period of time
owing to a good preparation of the leader amidst foresight of any probable crisis. Thus, leaders can have a
very positive impact on organizations as shown by such well-known leaders in business as Jack Welch
(former GE chairman), Andy Grove (former CEO, Intel), Herb Kelleher (Chairman, Southwest Airlines), and
the late Steve Jobs (Apple).

Discussion Question 1: What are some other examples of executives who have overcome
significant challenges (over which they had relatively little control) and guided their firm to a high
level of success in their industry?

Discussion Question 2: What are the implications for your careers? (This is a rather general question,
but it might help remind you as students that one must be sensitive

2
to changes in industry dynamics that could provide new opportunities—as well as, perhaps, erode
opportunities that one may have thought one had in a particular industry.)

I. What Is StrategicManagement?

Managers must see their jobs as more than just custodians of the “status quo.” Rather, they must
proactively anticipate change and continually refine, as well as, when necessary, make significant changes
to their strategies. This has become particularly important as competitive environments become
characterized by increasing rates of unpredictable change.

A. Defining StrategicManagement

Strategic management is “consisting of the analysis, decisions, and actions an organization


undertakes in order to create and sustain competitive advantages.” This definition captures two main
elements of the field of strategic management.

First, strategic management entails three on-going processes: analysis, decisions, and actions. That
is, managers must analyze the internal and external environment as well as their hierarchy of goals in order
to formulate and implement strategies.

Second, the essence of strategic management is the study of why some firms outperform others.
We draw on Michael Porter’s work to make the important distinction between strategy and operational
effectiveness. Managers must create advantages that are sustainable over a period of time, instead of
merely temporary. That is: How can we create competitive advantages in the marketplace that are not only
unique and valuable but also difficult for competitors to copy or substitute?

B. The Four Key Attributes of Strategic Management

There are four key attributes of strategic management. Strategic management is directed toward
organizational goals and objectives; includes multiple stakeholders in decision making; incorporates both
short-term and long-term perspectives; and, recognizes trade-offs between effectiveness and efficiency.

- Directs the organization toward overall goals and objectives.


- Includes multiple stakeholders in decision making.
- Needs to incorporate short-term and long-term perspectives.
- Recognizes trade-offs between efficiency and effectiveness.

From these above attributes where, top managers are required to look at the overall picture of the
whole company, being equipped with a systems perspective, managers shall do well to acquire and possess
“ambidextrous behaviors”—the ability to both be proactive in taking advantage of future opportunities, as
well as in exploiting an existing resource base. There are four most important traits of ambidextrous
individuals. These

include looking for opportunities beyond the description of one’s job, seeking out
opportunities to collaborate with others, building internal networks, and multitasking.

Discussion Question 3: Do you know of any managers or executives who have exhibited
ambidextrous behaviors?How?
II. The Strategic Management Process

The three ongoing processes in strategic management are analysis, decisions, and actions—that are
typically referred to as analysis, formulation, and implementation. See FIGURE 1 below.

FIGURE 1. Three Interrelated Strategic Management Process

FIGURE 2. Strategic Management Process

The next three subsections address each of the three key strategic management processes: analysis,
formulation, and implementation.

B. Strategy Analysis

Strategy analysis consists of, in effect, the “advance work” that must be done in order to effectively
formulate and implement strategies. Many strategies fail because managers may want to formulate and
implement strategies without a careful analysis of the overarching goals of the organization, as well as a
thorough analysis of its external and internal environment.

5
1. Analyzing Organization Goals and Objectives (Module 1)

2. Analyzing the External Environment (Module 2)

3. Assessing the Internal Environment (Module 3)

4. Assessing a Firm's Intellectual Assets (Module 4)

C. Strategy Formulation

A firm’s strategy is formulated at several levels. First, business-level strategy addresses the issue of
how firms compete in an industry to gain competitive advantage. Second, corporate-level strategy focuses
on two issues: (1) what businesses to compete in, and (2) how businesses can be managed to achieve
synergy, that is, create more value by working together than if they operated as a stand-alone entity. Third,
firms must develop international strategies as they expand beyond their national boundaries. And fourth,
managers must develop entrepreneurial strategies and be aware of the competitive dynamics in their
industry.

1. Formulating Business Level Strategies (Module 5)

2. Formulating Corporate Level Strategies(Module 6)

3. Formulating International Level Strategies (Module 7)

4. Entrepreneurial Strategy and Competitive Dynamics (Module 8)

D. Strategy Implementation

Clearly, effective strategies are of little value if they are not properly implemented.
Implementing strategies involves strategic controls and organizational designs; coordination and integration
among activities within the firm, as well as with customers andsuppliers; and effective leadership.

1. Creating Effective Organizational Designs (Module 9)

2. Strategic Leadership: Excellence, Ethics and Change (Module 10)

3. Fostering Corporate Entrepreneurship (Module 11)

4. Strategic Control and Corporate Governance (Module 12)

III. The Role of Corporate Governance and Stakeholder Management

There are three important and related concepts that must be critically discussed which are:
corporate governance, stakeholder management, and social responsibility. These topics (especially
corporate governance) have invited quite an interest and
generated a bit of controversy nowadays in the light of violations of certain companies like WorldCom, Enron to
name a few.

Corporate governance addresses the relationship between various participants in determining the
overall direction and performance of corporations. It consists of three primary participants—shareholders,
management, and the board of directors. See Figure 3 below

FIGURE 3. Corporate Governance Participants.

(Corporate governance shall be discussed in much more detail in Module 12.


However, it is such a “hot” topic, that there is a need to discuss in advance in this introductory
part of the course.

Discussion Question 4: What are some other recent examples of poor corporate governance?

Discussion Question 5: What are the causes of such poor governance?

In the USA, the subject of extremely high executive pay which is


disproportionate
performance totopic. Related to this, there is also the occurrence of the increased rapid
has become a hot
turnover of CEOs among large firms and the growing pressure that CEOs face from investors and other
stakeholders.
Extra Example:The WestHas MuchLower Confidence inCapitalism

The great majority, not surprisingly, have a “favorable” view of corporations whether they
come from developed (82 percent) or emerging (86 percent) markets. However, the
general public’s view of corporations is far less favorable. Interestingly, people in
developed markets—including the U.S., U.K., Germany, Japan and Hong Kong—retain
especially skeptical views.

l Only 52 percent of the public in developed markets have a “favorable” view of


corporations, compared with 72 percent in emerging markets such as China, Brazil,
India, Mexico and Turkey.
l Nearly 60 percent of the public in emerging markets favor corporations that are
“strong and influential” because they are “engines of innovation and economic
growth.” Just over one-third of the public in developed markets agree.
l In developed markets, 45 percent say corporations have “too much influence ove r
government,” compared with 30 percent in emerging economies.

Source: Baer, D.A. 2014. The West’s Bruised Confidence in Capitalism. Wall Street Journal.
September 22: A17.

A. Alternative Perspectives on Stakeholder Management

There are often conflicting demands among an organization’s stakeholders.


However, managers need to acknowledge the interdependence among stakeholders and strive to achieve
symbiosis, that is, the recognition that stakeholders are interdependent upon one another for their success
and well-being. For instance, Outback Steakhouse found that there were positive relationships between
employee attitudes, customer satisfaction, and revenue increases.

1. Zero-Sum orSymbiosis

Discussion Question 6: What are some ways that a company’s stakeholder demands may conflict?
How might they be highly interdependent and positively (or negatively) related to each other?

Discussion Question 7: What are other examples of companies having collective initiatives? And,
in your example, have all stakeholders benefitted (or been penalized) equally?

B. Social Responsibility and Environmental Sustainability: Moving Beyond the Immediate


Stakeholders

1. Social Responsibility
Managers must consider the needs of the broader community-at-large and act in a socially
responsible manner. Social responsibility is the expectation that businesses or individuals will strive to
improve the overall welfare of a society. What is your preferred side about this issue?

Extra Example: Stakeholders Versus Shareholders

Although corporate social responsibility may appear to be an “apple-pie virtue,” it is quite


controversial. Below are some of the chief arguments for and against it:

Proponents will claim that it…

BURNISHES A COMPANY’S REPUTATION. In the wake of corporate scandals, corporate social responsibility
builds goodwill—and can pay off when scandals or regulatory scrutiny inevitably arise.

ATTRACTS TALENT. Many young professionals expect their employers to be active in social issues.
Membership in Netimpact.org, a network of socially-conscious MBA graduates, jumped from 4,000 in 2002
to 10,000 in 2004.

On the other hand, Detractors will argue that it…

COSTS TOO MUCH. Giving by corporate foundations reached an all-time high of $3.6 billion last year.
However, it can come at the expense of other priorities, such as research and development, and is rarely
valued by Wall Street.

IS MISGUIDED. Many corporate executives believe, as economist Milton Friedman does, that the role of
business is to generate profits for shareholders—not to spend others’ money for some perceived social
benefit.

Source: Grow, B., Hamm, S. & Lee, Louise. 2005. The debate over doing good. Business Week, August 15:
76-78.

2. The Triple Bottom Line: Incorporating Financial as well as Environmental and Social
Costs

Many companies are measuring what they call the “triple bottom line.” Such a technique involves
an assessment of environmental, social, and financial performance. Environmental sustainability is now a
value embraced by most successful corporations.

Discussion Question 8: Do you know of organizations that may have, in effect, used the “triple
bottom line” approach to assess environmental, social, and financial performance?

It is important to stress that when considering the “triple bottom line,” there are not
always tradeoffs. At times, firms can attain symbiosis—that is increase their effectiveness in
attaining multiple bottom lines simultaneously. Firms can increase revenues and cut costs via sustainability
initiatives.

The EXTRA EXAMPLE below provides some figures on the favorable views of environmental
sustainability by CEOs and the public at large.

Extra Example: Favorable Viewson Environmental Sustainability

Data (obtained from research by American Express, Davos, Deloitte, Maritz Research and Price Waterhouse
Coopers) shows how positively CEOs and the general public view environmental sustainability:

l 87 percent of Fortune 1000 CEOs believe sustainability is important to a company’s


profits.
l 73 percent of CEOs believe sustainability results in costs savings.
l 90 percent of the U.S. population says it is important for companies to be mindfulof
their impact on the environment and society.
l 46 percent of consumers say they would shop at a retailer more if it was
environmentally friendly.
l consumers say they would pay more for environmentally
friendly services, products, or brands.

Source: Kubala, D. Apparel Technology & Business Insight—From Concept to Consumer (unpublished
manuscript).

IV. The Strategic Management Perspective: An Imperative throughout the


Organization

There is an emerging need for empowerment and a strategic management perspective throughout
organizations. This is primarily due to today’s increasingly complex, interconnected, and ever-changing
global economy. To develop and mobilize people and other organizational assets, leaders are required
throughout the organization. As noted by MIT’s Peter Senge, there is a need for three types of leaders: local
line leaders, executive leaders, and internal networkers.

The EXTRA EXAMPLE below emphasizes the importance of empowering people throughout the
organization. At USA Mortgage, the CEO realized, belatedly, the importance of having his middle
managers involved in planning sessions.
Extra Example: he Value of Bringing in Middle Level Managers for Planning
Sessions
Doug Schukar was very excited when his residential mortgage bank in St.
Louis, USA
Mortgage, increased the loans it funded from $113 million in January 2009 to $1.2 billion by
the end of the year. While other lenders struggled, he boosted his sales efforts.
However,
failing bykey middle managers informed of growth plans such as acquisitions, he let
to keep
them get blindsided by the huge volume of work that came from the company’s
rapid
expansion. Result: Almost all resigned, and he had to hire replacements. Today, he
middle managers in annual and quarterly planning
includes
sessions.
Source: Harnish, V. 2011. Five ways to get your strategy right. Fortune. April 11: 42.

V. Ensuring Coherence in Strategic Direction

Successful organizations express priorities through stated goals and objectives that form a hierarchy
of goals that include its vision, mission, and strategic objectives. What visions lack in specificity, they make
up for in their ability to evoke powerful and compelling mental images. On the other hand, strategic
objectives tend to be more specific and provide a more direct means of determining if the organization is
moving toward broader, overall goals.

FIGURE 4 depicts the hierarchy of goals and its relationship to two attributes: general versus specific and
time horizon.

FIGURE 4. Hierarchy of Goals

A. Organizational Vision

An organizational vision has been described as a goal that is “massively inspiring,


overarching, and long-term.” It should represent a destination and evoke passion. Good
examples of vision statements are, “Beat Xerox” (Canon) and “To take the world boating”
(Outboard Marine Corporation).

The EXTRA EXAMPLE below (going back in history nearly one hundred years) provides an example
of a vision emerging from the middle levels of the organization. Unfortunately, the top executives ignored it.

 Extra Example: David Sarnoff’s Visionary Leadership

In 1906, a young Russian immigrant found work as an office boy at Marconi Wireless
Telegraph Company. He clawed his way up to Chief Inspector at the age of 22. And,
ever watchful for ways to advance his career, he decided to attend a demonstration
of a new kind of circuit—one that could generate continuous electromagnetic waves.
The young man returned to work, convinced he had seen the future. Memos flew. He
described how music could be broadcast to hundreds of thousands of homes at once,
and from a single transmitter. Every family in America would buy a “radio box.” And
Marconi would manufacture and sell everyone. He wondered why executives couldn’t
see that there would be millions of dollars to be made. The company’s more senior
managers thought he had lost his mind. After all, they were in the telegraph business.

Years later, Marconi Wireless became RCA, the Radio Corporation of America. And
Discussion Question 9: Would executives in companies with which you are familiar been more
receptive to such initiatives by lower-ranking executives? Why? Why not?

However, there are some reasons that visions fail:


 The Walk Doesn’t Match theTalk
 Irrelevance
 Not the Holy Grail
 Too Much Focus Leads to Missed Opportunities
 An Ideal Future Not Reconciled with the Present

The EXTRA EXAMPLE below provides a concrete example of a well-known firm— Komatsu—which
faltered when it missed opportunities because it placed too much focus on its vision.

 Extra Example How Komatsu “Encircled” Caterpillar

Faced with the challenge of rival Caterpillar’s entry into Komatsu’s protected home
market, Ryoichi Kawai, then CEO of Komatsu, focused the whole company on beating
Caterpillar. “Maru-C” became the rally cry, which meant “Encircle Caterpillar.” And,
to make the enemy visible and omnipresent, Kawai purchased the largest Caterpillar
bulldozer available and placed it on the roof of Komatsu headquarters. The story is
well- known of how Kawai leveraged his aggression against Caterpillar into a highly
disciplined and effective process of building up Komatsu’s strengths and market
position. (In fact, it became the most-used Harvard case study.)

However, there was a lesser-known downside. The two decades of focusing on a “life-
and- death battle” with Caterpillar prevented Komatsu from identifying new
opportunities in related areas of business and from pursuing genuine breakthrough
innovations in its core earthmoving-equipment business. Eventually, Tetsuya Katada
took over and formally abolished the “Maru-C” slogan and removed all the symbols
Kawai had built to represent the Caterpillar battle. The result was successful expansion

Discussion Question 10: What are some effective (or ineffective) organization visions with which you are
familiar? Why are they successful (or unsuccessful)? (You may be cynical, primarily because the “walk
doesn’t match the talk”.)
Source: Bruch, H. & Ghoshal, S. 2004. A bias for action. Boston: Harvard Business
B.
School.Mission Statements

A company’s mission statement differs from its vision in that it encompasses both the
purpose of the company as well as the basis for competition and competitive advantages.

Effective mission statements incorporate the concept of stakeholder management, and suggest
that organizations must respond to multiple constituencies if they are to survive and prosper. They have
the greatest impact when they are used to reflect an organization’s enduring, overarching strategic
priorities and competitive positioning.

Few mission statements identify profit or any financial indicator as the sole purpose of the firm.
Good mission statements must communicate why an organization is special and different.

At times, mission statements can, and should, change when competitive positions dramatically change or
when the firm is faced with new threats and opportunities.

The EXTRA EXAMPLE below points out how Haier Group, a large Chinese appliance manufacturer,
eliminates distance to customers by adopting various measures and strategies. “Serving customers with
quality” became part of their mission statement.

Extra Example: The Mission of Haier Group’s CEO: Getting Closer to


Customers

Zhang Ruimin, CEO of the Haier Group, realized that having a sole focus on
generating huge profits today could not ensure his company’s survival tomorrow. He
chooses to focus on quality instead. He did so by following insights from Peter
This insight prompted Haier Group to explore opportunities to create customers in
the era of cyberspace and the Internet. The result was an Internet and telephone
marketing network and a physical logistics and services network that allows Haier to
excel in
determining customers’ needs, rapidly delivering products, and after-sales services in
both rural and urban areas all over China. Another step Zhang has taken is to invert
Haier’s organizational pyramid. He truly believes that only people on the front lines
can have a deep understanding of customer’s needs. Therefore, employees who
directly face customers should be at the top, and senior executives should support
them so that they can deliver on their commitments to customers. Zhang eloquently
expresses his philosophy by drawing on Peter Drucker: “All decisions I make must be
consistent with the ever- changing external environment. If they aren’t, the

Discussion Question 11: Can you think of other measures to eliminate the distance between a
company and its customers?
Discussion Question 12: Can inverting the organizational pyramid really work? What would
Source:companies
Zhang, gain by doingWhat
R. 2009. so? What would they
I learned lose?
from Peter Drucker: Distance has been
eliminated.
www.hbr.org.
C. November: np.
Strategic Objectives

Strategic objectives are used to operationalize the mission statement. That is, they help to
provide guidance on how the organization can fulfill or move toward the “higher goals” in the goal
hierarchy—the mission and vision.

The lists below present several strategic objectives divided into financial and nonfinancial
objectives. While most of these objectives are directed toward generating greater profits and returns for
the owners of the business, others are directed at customers or the society-at-large (ex. - BP Amoco’s
objective to reduce greenhouse gases over an extended period of time).

Strategic Objectives (Financial


 Increase sales growth 6% to 8% and accelerate core net earnings growth from 13% to 15% per share in
each of the next 5 years. (Procter & Gamble)
 Generate internet-related revenue of $1.5 billion. (AutoNation)
 Increase the contribution of Banking Group earnings from investments, brokerage, and insurance
from 16% to 25%. (Wells Fargo)
 Cut corporate overhead costs by $30M per year. (Fortune Brands)
Strategic Objectives (Nonfinancial
 We want a majority of our customers, when surveyed, to say they consider Wells Fargo the
best financial institution in the community. (Wells Fargo)
 Reduce volatile air emissions 15% by 2015 from 2010 base year, indexed to net sales. (3M)
 Our goal to help save 100,000 more lives each year. (Varian Medical Systems)
 We want to be the top-ranked a supplier to our customers.(PPG)

For objectives to be meaningful, they must satisfy several criteria. They must be:
 Measurable
 Specific
 Appropriate
 Realistic
 Timely

Objectives that satisfy such criteria provide many benefits to the organization. These include: (1)
channel employees throughout the organization toward common goals, (2) motivate and inspire employees
to higher levels of commitment and effort, (3) help to resolve conflicts when they arise, and (4) provide a
yardstick for rewards and incentives.

There are, of course, other objectives that are even more specific that are often referred to as
short-term objectives. These are essential components of “action plans” that are vital in the
implementation of a firm’s strategy. (We address these in more detail in Module 12.) We provide the
example of how Textron implements its strategic objectives.

Organizations must ensure consistency throughout the organization when it implements


strategic objectives. The EXTRA EXAMPLE below discusses how Textron, a conglomerate with $14
billion in 2014 revenues, ensures that its corporate goals are effectively implemented.

Extra Example: How Textron Implements its StrategicObjectives

At Textron, each business unit identifies “improvement priorities” that it must act upon to
realize the performance outlined in the firm’s overall strategic plan. Each improvement
priority is translated into action items with clearly defined accountabilities, timetables, and
key performance indicators (KPIs) that enable executives to tell how a unit is deliveringon
a priority. Improvement priorities and action items cascade to every level at thefirm—
lowest levels in each of the firm’s 10 business units. Says Lewis Campbell, Textron’s CEO:
“Everyone needs to know: ‘If I have only one hour to work,here’s what I’m going to focus
on.’ Our goal deployment process makes each individual’s accountabilities and priorities
clear.”

Source: Mankins, M. M. & Steele, R. 2005. Turning great strategy into great performance.
Harvard Business Review, 83(5): 66–73.

VI. Summary

We began this introductory module by defining strategic management and articulating some of its
key attributes. Strategic management is defined as “consisting of the analysis, decisions, and actions an
organization undertakes to create and sustain
competitive advantages.” The issue of how and why some firms outperform others in the marketplace is
entral to the study of strategic management. Strategic management has four key attributes: it is directed at
overall organizational goals, includes multiple stakeholders, incorporates both short-term and long-term
perspectives, and incorporates trade-offs between efficiency and effectiveness.

The second section discussed the strategic management process. Here, we paralleled the above
definition of strategic management and focused on three core activities in the strategic management
process—strategy analysis, strategy formulation, and strategy implementation. We noted how each of
these activities is highly interrelated to and interdependent on one another. We also discussed how each of
the 12 modules fit into the three core activities.

Next, we introduced two important and interrelated concepts—corporate governance and


stakeholder management. Corporate governance consists of three primary elements—management, boards
of directors, shareholders (owners)—which play the key role in determining a corporation’s strategic
direction. Stakeholder management addresses the individuals (and organizations) that must be taken into
account throughout the strategic management process. We identified several key stakeholders in all
organizations, and the nature of their claims. Successful firms go beyond an overriding focus on satisfying
solely the interests of owners. Rather, they recognize the inherent conflicts that arise among the demands
of the various stakeholders, as well as the need to endeavor to attain “symbiosis”—that is, interdependence
and mutual benefit—among the various stakeholder groups. We also addressed environmental
sustainability and some of the challenges associated with “selling” environmental sustainability initiatives to
management.

In the fourth section, we discussed the rate of unpredictable change that managers face today.
Managers and employees throughout the organization must have a strategic management perspective and
become more empowered.

The final section addressed the need for consistency between a firm’s vision, mission, and strategic
objectives. Collectively, they form an organization’s hierarchy of goals.
Visions should evoke powerful and compelling mental images. However, they are not very specific. Strategic
objectives, on the other hand, are much more specific and are vital to ensuring that the organization is striving
toward fulfilling its vision and mission.

17
(time, money, etc.) to enable you to achieve these objectives? Are your objectives measurable, timely,
realistic, specific, and appropriate?

Do you spend any time and energy in activities that do not contribute to your strategic objectives? Why do
you think these activities are not productive? Then reflect and rewrite your objectives that are measurable,
timely, realistic, specific, and appropriate.

1. Stakeholder management

Analyze your university (or school) from the stakeholder concept. Identify the stakeholders and the nature
of their claims on the organization. What are the implications for administrators?

Is the stakeholder management in place a zero sum or symbiotic?

Moreover, can you cite some examples of other social responsibilities of universities. Some of the social
responsibilities that can be discussed, to mention a few, are setting examples in terms of waste recycling,
promoting environment friendly campus and research lab facilities, being involved with community services,
ensuring diversity in the recruiting of students, staff, and faculty.

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