CONTEMPORARY STRATEGY ANALYSIS

Prepared by: KUY, Daranita

CHAPTER 16: CURRENT TRENDS IN STRATEGIC MANAGEMENT

Contents:

¤  Introduction ¤ The New Environment of Business ¤ New Direction in Strategic Thinking ¤ Redesigning Organizations ¤ The Changing Role of Managers

1. Introduction

¨  Assess what has changed in the business environment ¨  Discuss about issues that the strategic management is

struggling

Driving forces

Draw upon concepts

and ideas

New Strategic Thinking

2. The New Environment of Business

The Turbulent of 21st century

Early 21st

March 2000

Sep 11, 2001

Nov 2001

Earthquake, Iran 2003

Tsunami 2004

Hurricane 2005

Earthquake, China 2008

2008-2009

Earthquake, Haiti 2010

Earthquake, Japan 2011

March, 2012

¤  2012, at least 30 Chinese and Indian firms supplying Android smartphones under their own brand names

¤  Legitimacy (CSR...)

¨  Long succession of political crisis has been an era of phenomena turbulence

Financial Crisis

Internationalization

Increasing the competition

New Direction in Strategic Thinking ¨  Key Trends of the 1990s

Ø  Shareholder Value Ø  Adjust to increased turbulence - Increase intense competition

− − − − − − − − − − − − − − − − − − − − − − − − − − − − − − −> ¨  Influential Strategy Concepts

Ø  Strategic factors that drive profits. Chapter 2 Ø  Hyper-competition −> Competitive advantage through networks, standards, and

alliances Ø  Option theory (real, growth, abandonment, and flexibility) Ø  Strategic fit Chapter 1 and Activity System Chapter 6 Ø  Complexity Theory (unpredictability, self-organization...)

3. Redesigning Organizations

¨  BEFORE Ø  Emphasis on control

Ø  Single performance goal

Ø  Decision located centrally

Ø  Organization by design

¨  NOW Ø  Emphasis on co-ordination

Ø  Multiple performance goal

Ø  Decision located where relevant knowledge exits

Ø  Self-organization

¨  Self-Organization

Identity Information Relationship

The Changing Role of Managers:

¨  BEFORE Ø  Highly-visible

Ø  Individualistic

Ø  Hard-working

¨  NOW Ø  Guiding organization evolution

Ø  Cultivating identity and purpose

Ø  Emotional intelligence ²  Self-awareness

²  Self-management

²  Social-awareness

²  Social skill

The New Trend of Strategic Management Summary

¨  New Direction in Strategy Thinking Ø  Complexity Theory (unpredictability, self-organization) Ø  Option Theory, (real, growth...) Ø  Capability based structure of organization

o  Team based o  Project based o  Process based

Ø  Organizing for adaptability o  Identity o  Modularity o  networks

Ø  Emotional intelligence in leaders

THANK YOU!!!