Current Trends in Strategic Management .

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The Turbulent 21st Century. Breakdown of New bubble burstsTMT subsidence. Corporate Scandals Enron, WorldCom, Parmalat Jack Welch\'s retirement bundle . War Invasion of Afghanistan
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Current Trends in Strategi c M anagement The New E conomy New Directions in Strategic Thinking Redesigning the Organization New Modes of Leadership OUTLINE

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The Turbulent 21 st Century Collapse of New Economy bubble blasts TMT subsidence Corporate Scandals Enron, WorldCom, Parmalat Jack Welch\'s retirement bundle War Invasion of Afghanistan & Iraq Civil wars in Congo, Liberia, Sudan, Somalia International rivalry escalates China as Workshop of the World Outsourcing to LDCs The Curse of Terrorism Sept. 11, 2001 Suicide bombings in Israel, Iraq, Saudi Arabia, Turkey, Afghanistan Decline of Multilateralism Collapse of Doha round Trade wars between US, EU, China Weakening of UN Age of Disbelief Fear of Disease SARS, Mad Cow, Bird Flu Unstable Currencies US$ decays by >50% against Euro 2002-04

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US Labor Productivity: Annual Changes in Non-Farm Output every Hour Worked, 1990-2006

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Return on Equity of US Manufacturing Corporations, 1990-200 3 Source: US Bureau of the Census

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The estimation of mergers and acquisitions overall Source : Thomson Financial Securities Data

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Directions in Strategic Management Practice — Trends of the 1990s Key T rips of the 1990s: Quest for shareholder esteem Adjusting to expanded turbulence & more extreme rivalry Major Themes of Business Strategy : Cost cutting — crushing overhead, business handle re-building, expanding work profitability Outsourcing/refocusing/divestment Performance m ana g ement and i ncentive arrangement I nfluen tial S trategy Concepts : Modern money related examination — shareholder esteem, monetary benefit, alternative hypothesis C mineral abilities and elusive resources Dynamic partner competiti ve markets — " hypercompetition" Competitive favorable position through organizations together, systems, and guidelines

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Forces Shaping Company Strategies 2001-04 The Business Environment Uncertainty Stalling of financial progression Intense rivalry Future Sources of Profit Limits of scaling back/cost cutting Where are future wellsprings of benefit? Ideas & Theories Resources & abilities as reason for upper hand Knowledge-based hypothesis of the firm Option hypothesis Complexity hypothesis Technology Continued advances in ICT Demands of society Social & natural duty Ethics & reasonableness Quest for importance

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Emerging Developments STRATEGY Multiple upper hands/various capacities Innovation/New Product Development/New Business Development Alliances & systems ORGANIZATION STRUCTURE Reconciling adaptability & reconciliation Modular structures Multidimensional structures Informal association & self-association MANAGEMENT SYSTEMS Knowledge administration (incl. best-hone exchange) Redesigning impetus frameworks Rethinking execution administration Capturing human innovativeness

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The Need to Redesign Organizations THE PAST THE FUTURE Emphasis on control Emphasis on co-appointment Single execution objective Multiple execution objectives Decisions found midway Decisions found where significant learning exists Simple structures , u nified line of order Multidimensional structures Diffused expert, however clear obligations Organization by plan Self association

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Emerging Organizational Forms Organizing for capability Shifting accentuation of association advancement outline from control to coordination From unitary to parallel Separate coordination structures for structures distinctive procedures . E .g. 3M \'s item development structure; isolate structures for TQM and change administration Process-based Organizing around business forms associations Organizing around corporate procedures - entrepreneurial process - skill building process - recharging process Project-based organization E.g. designing cos., counseling firms , additionally producing cos. e.g. Oticon Network and v irtual E .g. e lectronics in Silicon Valley , c lothing o rganization and bundling prepare ment in Italy

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New Models of Leadership : What Competencies do Top Managers Need? THE REQUIRED COMPETENCIES OF BUSINESS LEADERS business education inventiveness diverse adequacy sympathy adaptability proactivity critical thinking connection building collaboration vision THE LEADERSHIP NEEDS OF ORGANIZATIONS The capacity to: manufacture certainty fabricate eagerness coordinate convey comes about shape systems impact others utilize data

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