MARK COMPONENT
10% participation
• Attendance
• Discussion
30% Simulation
• mid-term test
• Deadline: 14th and 15th session
60% final exam
PRESENTATION TOPIC
Choose a domestic or international firm, then analyze
its business strategy
Deadline for company name registration: 26/1/2024
Deadline for performance: 14th and 15th session
TEXTBOOK
REFERENCES
INTRODUCTION TO
STRATEGIC MANAGEMENT
PhD. Nguyen Hong Van
A BRIEF HISTORY OF STRATEGIC MANAGEMENT
1960s & early 1970s:
Corporate planning
• The beginning of strategic planning
• Enterprises set out development trends
based on analysis of the past.
Late 1970 & 1980s:
The Evolution of Strategic Emergence of strategic management
Management • At this stage, Enterprises focus on how to win
over competitors.
• The theory of competitive strategy by M.
Porter
1990s- nowadays
The quest for competitive advantage
• Along with strategic planning, businesses
focused on strategy implementation and
control
DEFINITIONS OF STRATEGY
- Long- term direction of an organization
- Actions to achieve a long-term goals
- Resource allocation
Walt Disney: from a cartoon studio to a world entertainment brand
Vingroup: from real estate projects to sustainable ecosystem development
DEFINITIONS OF STRATEGY
A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13
M.E. Porter, ‘What is strategy?’, Harvard Business Review, November–December 1996, p. 60
P.F. Drucker, ‘The theory of business’, Harvard Business Review, September–October 1994, pp. 95–106
H. Mintzberg, Tracking Strategies: Towards a General Theory, Oxford University Press, 2007, p. 3.
STRATEGY: CURRENT POSITIONING, FUTURE DIRECTION
STRATEGY AS POSITIONING STRATEGY AS DIRECTION
What do we want to become?
Where are we competing?
- Vision statement
- Product market scope
- Geographical scope What do we want to achieve?
- Vertical scope - Mission statement
- Performance goals
How are we competing? How will we get there?
- What is the basis of our - Strategy, tactics, plans
competitive advantage? - Priorities for capital
expenditure, R&D, marketing, etc.
- Growth modes: organic
growth, M&A, alliances
COMPETING FOR THE PREPARING FOR THE
PRESENT FUTURE
STRATEGY
What is Strategy for?
• How to define an organisation’s purpose?
– Mission Statement
– Vision Statement
– Statement of Corporate Values
– Statement of Objectives
– Strategy Statement
VISION
• Vision is the highest desire, the highest aspiration, the most
general that an enterprise wants to achieve in the future
• The process of determining:
- How good does the business want to be?
- How good can the business be?
- How good should the business be?
FTU’S VISION STATEMENT
Đến năm 2030, Trường Đại học Ngoại thương là trường đại học tự
chủ, theo định hướng nghiên cứu, nằm trong nhóm các trường
đại học hàng đầu của khu vực. Trường bao gồm các trường trực
thuộc, các viện nghiên cứu, doanh nghiệp, trường phổ thông
chất lượng cao. Trụ sở chính của trường đặt tại Hà Nội, các phân
hiệu đặt tại Hà Nội, Quảng Ninh, thành phố Hồ Chí Minh, các
vùng kinh tế trọng điểm trong cả nước và ở nước ngoài.
VINGROUP’S VISION STATEMENT
Vingroup định hướng phát triển thành một Tập đoàn Công
nghệ - Công nghiệp - Thương mại Dịch vụ hàng đầu khu vực,
không ngừng đổi mới, sáng tạo để kiến tạo hệ sinh thái các
sản phẩm dịch vụ đẳng cấp, góp phần nâng cao chất lượng
cuộc sống của người Việt và nâng tầm vị thế của thương hiệu
Việt trên trường quốc tế.
VISION STATEMENT
”To be the largest coffee supplier in the world”
“To be the best and strongest sportswear company in
the world”
“To create the most attractive electric car of the 21st century”
“To be a destination for customers to save money,
no matter how they want to shop”
MISSION
• A statement of purpose that is of the value (tangible and
intangible) of the business providing
• Key questions:
- Why do we exist?
- What industry d o we operate in?
- What purposes do we pursue?
- What target of customers do we serve?
FTU’S MISSION STATEMENT
Sứ mệnh của trường Đại học Ngoại thương là đào tạo nhân tài và
cung cấp nguồn nhân lực chất lượng cao trong các lĩnh vực kinh
tế, kinh doanh, quản trị kinh doanh, tài chính - ngân hàng, luật,
công nghệ và ngoại ngữ; sáng tạo và chuyển giao tri thức khoa
học đáp ứng yêu cầu của sự nghiệp CNH, HĐH đất nước; phát
triển năng lực học tập, nghiên cứu khoa học của sinh viên; rèn
luyện kỹ năng làm việc và lối sống trong môi trường quốc tế hiện
đại. Trường còn là nơi phổ biến tri thức khoa học, nghề nghiệp
cho cộng đồng doanh nghiệp và xã hội, là trung tâm giao lưu
học thuật và văn hóa giữa các quốc gia và dân tộc trên thế giới
MISSION STATEMENT
“Inspire and nurture the human spirit – one person,
a cup of coffee and a neighborhood at a time
“Bring the inspiration and innovation to athletes around the world
People have body that becomes athletes”
“Accelerate the world's transition to sustainable energy
That electric car could be better, faster and more fun than
a gas-powered car”
“Save people money and help them with better living standard, serve others,
strive for excellent results, respect people and behave with integrity”
KENNY’S (2014)
TYPOLOGY OF
FORWARD-LOOKING
STATEMENTS
Kenny, G. (2014). Your company’s purpose
is not its vision, mission, or values. Harvard
Business Review, September.
STRATEGIC MANAGEMENT
Strategic management is an organization’s process of
continuous planning, organizing, monitoring, analyzing and
controlling all that is necessary for an organization to meet its
goals and objectives in pursuit of a future direction. This includes
decisions and actions that determine the long-run performance
of an organization
“Strategic management is both an art and a science…”
STRATEGIC MANAGEMENT PROCESS: 5 STEPS
• Step 1: Identify strategic goals and objectives
• Step2: Conduct external and internal analysis (business
environment analysis)
• Step 3: Strategic choice
• Step 4: Implement strategic choice
• Step 5: Controlling, evaluating and adjusting
APPLYING STRATEGY ANALYSIS: THE STRATEGY PROCESS
See Pryce and Thompson (2017) for a detailed strategy process model
STEP 1: IDENTIFY STRATEGIC GOALS AND
OBJECTIVES
• Mission
• Vision
• Core values
• Strategic objectives
(SMART)
STEP2: CONDUCT EXTERNAL AND INTERNAL
ANALYSIS (BUSINESS ENVIRONMENT ANALYSIS)
• External environment (Opportunity and Threats)
• Internal environment (Strengths and Weaknesses)
STEP 3: STRATEGIC CHOICE
• Develop and evaluate strategic alternatives
• Select appropriate strategies – Feasibility – Acceptability -
Suitability
• Match org’s strengths to opportunities
• Correct weakness and guard against threats
STEP 4: IMPLEMENT STRATEGIC CHOICE
• Designing organizational structure
• Designing control system
– Market and output controls
– Bureaucratic controls
– Controls through organizational culture – Rewards and
incentives
• Matching strategy, structure, and control
• Fit among strategy, structure, and control
STEP 5: CONTROLLING, EVALUATING AND
ADJUSTING
• How effective the strategies have been?
• What adjustments, if any, is necessary?
STRATEGIC BUSINESS UNIT (SBU)
• A strategic business unit (also known as SBU) is a business term used to
present an independently managed entity or unit of a large company
• Those strategic business units often have their own visions, missions,
objectives, and course
• Their planning is done separately from other businesses, and their objectives
and goals are different from the parent enterprise and elemental to the
long-term performance of the business
• Being responsible for its own strategy and bottom line, a strategic business
unit can be a division, a team, or a completely separate business
• Different types of strategic business units:
- Products and services
- Location
- Customer segment
- Innovation
LEVELS OF STRATEGY
LEVELS OF STRATEGY
Corporate Concerned with the overall scope of an Diversifying from the
strategy organisation and how value is added to organisation’s original
the constituent business units. activities into other activities
e.g. Tesla selling batteries for
home use.
Business Concerned with the way a business Market positioning, and
strategy seeks to compete successfully in its marketing and product
particular market. improvement strategies
e.g. Developing a lower cost,
volume car for Tesla.
Functional/ Concerned with how different parts of Addresses the question of
operational the organisation deliver the strategy ‘how to operate’, and
effectively in terms of managing includes strategies for human
strategy resources, processes and people. resources, finance,
operations, marketing, etc.
CLASS EXERCISE
Group question:
1. What makes a successful strategy?
2. Give an example of a business with successful strategy that
you have known?
WHAT MAKES A SUCCESSFUL STRATEGY?
Successful strategy
EFFECTIVE IMPLEMENTATION
Long-term, Profound
Objective
simple and understanding of the
appraisal of
agreed competitive
resources
objectives environment
