Unit 1 - Role of a leader in Global Strategy.pptx

Unit 1
Development,
maintenance and role of
a Leader in Strategic
Management

OPENING VIGNETTES
STRATEGIES ADOPTED BY ELON MUSK
Sample
Footer
Text
2

Sample
Footer
Text
3
• Solving Big Problems: At the core of Musk’s strategy is his
knack for tackling really big problems. He chooses
challenges that are both huge and complicated. Whether it’s
making electric cars with Tesla, planning trips to Mars
through SpaceX, or merging brains with technology in
projects like Neuralink, Musk takes on tasks that match his
big dreams for the future.
• Smart Way of Doing Things: Musk isn’t only about picking
problems. He’s also clever in how he sets up his companies
to solve them. He likes to keep things under his control, a
bit like having your own tools when you’re fixing something.
This helps him work faster and better, making his projects
more successful.

Sample
Footer
Text
4
• Getting Resources: One more thing that sets Musk apart is
his ability to gather lots of resources. He doesn’t rely only on
regular money-raising methods. He invests a lot of his own
money into his companies, and this shows that he’s serious
about his goals. His passion and vision are so strong that
they inspire others to invest, too.
• When we look at Musk’s approach across his different
companies, we don’t see chaos; we see a method in
the madness. For people who want to start new and exciting
businesses or for those who invest their money,
these lessons are really valuable. You can use these ideas to
make better choices in new areas like Web3 and
the metaverse.

Sample
Footer
Text
5
• Vision: Seeing the Big Picture
• Great strategies often start with a clear and exciting vision
of the future. Back in 1980, Bill Gates famously envisioned
“a computer on every desk and in every home.” Musk’s
companies have their own bold visions. Tesla wants to
“speed up the world’s shift to clean energy,” and SpaceX
aims to “make humans a multi-planetary species.” But to
truly grasp Musk, we must understand his overarching
vision that ties all his businesses together.
• Problems, Not Answers
• When we think of a vision, we usually imagine aiming for a
particular solution. However, Musk takes
a different approach. He’s more interested in specific types
of problems. Specifically, he’s drawn to challenges
that involve dealing with huge scale and solving
complex puzzles.

6
• Scaling Up: Musk selects problems that can only be solved by
making massive investments. For example,
Tesla builds gigantic “gigafactories” to make electric cars
affordable for many people. The biggest one, Giga Texas,
is the largest factory in the world by size.
• Complex Challenges: He also tackles problems with lots of
moving parts that need to fit together perfectly, like reusable
rockets at SpaceX. These are incredibly tough problems, but if
you solve them, you can have a strong advantage.

ROLE OF LEADERSHIP IN
STRATEGIC
MANAGEMENT
Sample Footer Text
7

Introduction
• Strategy is the larger vision in a
company that guides the plans for
employees and managers.
• Strategy has its foundation in strategic
thinking. It is the determination of the
long-term goals and objectives of an
organization and the courses of action
and resources necessary for
implementing these goals.
Strategic thinking produces strategies.

• In modern organizations executives
included every level of the organization
in developing and implementing the
overall strategy.
• Strategic planning must anticipate
unexpected events, randomness, and
chaos to provide a good strategy. Good
strategic planning allows a company to
develop a sustainable competitive
advantage.
Introduction (Cont.)

• The earlier history of planning found
organizations using current-year sales, and
environmental trends for 5 to 10 years and basing
their plant, product and investment decisions on
this data within a stable environment.
• The environment changed into one of uncertainty,
intensifying foreign competition, technological
obsolescence, and changing markets and
populations; and, managers turned to strategic
planning.

• Strategic planning is a process that reviews market
conditions, customer needs, competitive strengths and
weaknesses, sociopolitical, legal, and economic
conditions, technological developments, and the
availability of resources to assist the organization in its
planning for opportunities or threats.
• The Strategic Plan includes taking this environmental
information and deciding on a mission, objectives,
strategies and a strategic architecture.
See Figure 6-2 in the readings for a visual diagram of
the process.

Lets look at one strategic plan in
action. Review the Matsushita
process where department
managers provide 3 plans every 6 months:
A five-year plan with technological and
environmental changes, a two-year plan taking
strategies into new products, and a six-month
operating plan that shows monthly projections for
production, sales, profits, inventories, quality
control, and personal requirements.

Organizations need to reflect
to be successful the critical
questions are:
1. What is our business?
2. What should it be?
And these must be answered by top management.

Business Porfolio Matrix
Identify each division, product line -called
strategic business units (SBU’s) which have 4
parts (distinct mission, own competitors, single
business or collection of businesses).
They can be planned independently of other
businesses of the total organization.
Then form a matrix.
What are the Important
Strategic Thinking Frameworks?

Market
Growth
See Figure 6-3 in your reading and analyze your
internship company. Pick an area in your intern
organization an determine what products or services
fall into the 4 boxes: stars, ?, cash cow & cash trap.

Star is a SBU that has a high share of a high-growth market.
They need a great deal of resources because of growth.
When growth slows they become cash cows.
Cash Cow has a high share of a low-growth market and
produces a good deal of cash for the organization. Since the
market is not growing they do not require a great amount of
resources.
Question Mark has a low share of a high-growth market, and
the organization must decide whether to build, phase it out,
or eliminate.
Cash Trap Has a low market share of a low growth market. It
may generate enough cash to maintain itself, or be a
drain, but it does not generate sources of cash.
Definitions

1. Build, if you believe it has the potential to be
a star.
2. Hold, if the SBU is already a successful cash
cow (especially when more cash is needed)
3. Harvest, appropriate for all SBUs except
cash cows.
4. Divest, getting rid of low-growth markets.
So What are your Strategic
Choices using the BCG
Business Porfolio Matrix?

Criticism of this approach
• Market share and market growth are
critical to profitability and sometimes
this finds managers unable to predict
the more profitable project.
• Some other critics contend that
managers focus on what to bring to
market and de-emphasize marketing.
• Also, can this matrix show the many
complex concepts in strategic
thinking? It is widely used across
diverse industries.

2ND Model: Porter’s Five Forces
Harvard Business School economist
Michael Porter developed a framework
for developing a organization’s strategy.
Five competitive forces are identified:
1. The threat of new entrants
2. The threat of substitute products of services
3. The bargaining power of suppliers
4. The substitute products or services
5. The rivalry among the existing competitors.
He also uses complementors which refers to the
dependence that develops between companies whose
products work in conjunction with each other.

2ND Model: Porter’s Five Forces
(Cont.)
• The strength of Porter’s model forces varies
in different industries. However, these 5
forces determine profitability since they shape
the firm prices, the costs, the investment
required to compete.

The Strategic Planning Process
1. The process asks manager to ask
what they want the future to be or
what they must do to ensure the `
desired future is achieved.
2. In a high performance organization, strategic
planning never ends.
3. Managers may be involved in the process and
influence it by providing information and
suggestions in their areas of responsibility. They
must know the process and results since their
own department objectives should be derived
from the strategic plan.

Example
One process highlighted was used by Tony Rigato, CEO of
MRM, Inc, a distributor of pneumatic industrial components in
Michigan. He identified 5 questions managers should
consider before the process begins:
1. Do you recognized a need to change?
2. Are you prepared for honest feedback even if it’s painful?
3. Are you willing to change the way you do business and
change yourself?
4. Will you turn the plan into action?
5. Do you have the guts to lead your company into
uncharted waters?

The Components of the
Strategic Process include:
1. Assessing the Organization’s Environment
2. Establishing an Organizational Mission
3. Establishing Organizational Goals and Objectives
4. Setting Operating Strategies.
Review the reading descriptions of these components.
Organizational strategies are the general
approaches used to achieve the organizational
objectives. These strategies include differentiation,
low cost, and niche.

Review the descriptions of these strategies.
It is important to remember that if an
organization's strategic plan is properly executed,
the scope, range, issues, and time perspectives
will differ from department to department. But all
the plans will be derived from the strategic plan
and this will guide the achievement.

Unit 1 - Role of a leader in Global Strategy.pptx

Related slideshows

More Related Content

Similar to Unit 1 - Role of a leader in Global Strategy.pptx

Similar to Unit 1 - Role of a leader in Global Strategy.pptx (20)

Recently uploaded

Recently uploaded (20)

Unit 1 - Role of a leader in Global Strategy.pptx