DEPARTMENT OF CHEMICAL
ENGINEERING & ENERGY SUSTAINABILITY,
FACULTY OF ENGINEERING
KNC3453/4453
STRATEGIC MANAGEMENT
N O R A ZI AH A BDUL WA HA B
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LESSON LEARNING
OUTCOMES
At the end of this lesson, students should be able
to:
❖Identify the definitional elements of strategic
management
❖Describe innovative management as mean of
developing strategic management capability
❖Analyse factors influencing strategic planning
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Concept of Strategy:
Quinn (1998)
Goals
Allocation Strategy Policies
Actions
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Management Theory:
Henri Fayol (1949)
• Selection of organizational goals for future of
Planning enterprise
• Mobilizing resources through organizational structure
Organising with clearly defined tasks, authority and responsibility
Commanding • Giving direction to companies
• Harmonizing resources and work of employees to
Coordinating align with organizational goals
• Monitor (progress), evaluate (meeting the goals?) and
Controlling institute corrective measures (where necessary)
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Strategic Management
❖A systematic approach for managing
strategic change which consists of the
following:
❖Positioning of the firm through strategy and
capability planning
❖Real time strategic response through issue
management
❖Linking the marketplace strategy with
organizational strategy
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INNOVATIVE
MANAGEMENT
Next
Session AND
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INNOVATIVE MANAGEMENT
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Innovative Management
Principles
❖Goals
➢Know where you are going, how to get there
➢Be flexible and persistent
❖Prioritise
➢First things first, every day
➢To-Do-List
❖Productivity measurement
➢Measure everyone’s productivity, including yourself!
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Innovative Management
Principles
❖Mobile communicator
➢Hands-on
➢Talk to people
➢“WE” approach
❖Coordinate and Control
➢Coordinate procedures, process and people
➢Delegates responsibilities
➢Supervision
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Innovative Management
Principles
❖Technologies as Keys to Productivity Improvement
❖Computers, Robotics
❖Seek out and remove obstacles to productivity
❖Eliminate productivity barriers
❖Search-and-destroy
❖Encourage Innovation
❖Creative, innovative
❖Each problem has its own solution
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Innovative Management
Principles
❖Expect and Accept only Quality
➢Ask for it, expect it, require it, reward it
➢Quality = Customers
❖Be enthusiastic
➢Can-do approach
➢Problems as opportunities
❖Act Now!
➢Go for it, Act on it
➢Set deadlines
❖Stay healthy, be happy
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Defining Red Ocean VS. Blue Ocean
RED OCEAN STRATEGY BLUE OCEAN STRATEGY
▪Compete in existing market ▪Create uncontested market
space space
▪Beat the competition ▪Make competition irrelevant
▪Exploit existing demand ▪Create and capture new
demand
▪Make the value-cost trade
off ▪Break the value-cost trade
off
▪Align strategy choice of
differentiation or low cost ▪Simultaneous pursuit
strategy of differentiation
and low cost
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Six Principles of BOS
Build
execution
Overcome into strategy
key
Get the organization
strategic hurdles
Focus on the sequence
big pictures, right
Reconstruct not numbers
market
Reach boundaries
beyond
existing
market
Formulation Principle Execution Principle
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Value Innovation
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4 Actions Framework
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Choose one
organization and
think how did the
organization position
itself in the
competitive market,
e.g. strategy,
strengths, etc.
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Next
Session
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