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‫ملخص مادة ‪ Bus310‬كل األسالة و كل‬

‫الشباتر‬
‫للميدتيرم‪ .‬االهم ثم االهم ثم االهم هو فهم المادة‬
‫و ليس‬
‫الحفظ ‪ ,‬لذلك تم توفير محاضرات اونالين يمكن للطالب‬
‫مشاهدتها اكثر من مرة باي وقت و اي مكان‪.‬‬
‫للحصول‬
‫على محاضرات اونالين لطلبة ادارة االعمال ‪AOU‬‬
‫بجميع الدول و تضمن اعلى العالمات باقل تكاليف و اقل‬
‫مجهود دراسي‬

‫سيتم توفير ملخص اخر اقل‬

‫كمية يتضمن اسالة الـ‪Focus‬‬
‫قبل الميدتيرم ‪ ,‬للحصول عليه‪:‬‬
‫تواصلوا معاي واتس‬
‫اب‪:‬‬
‫‪00965-55080885‬‬
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‫سيتم توفيرها و كذلك تتضمن امثلة اسهل للفهم‬
‫اجابات اسألة ‪ Focu‬الميدتيرم‬
‫و‬
‫‪s‬‬
‫الحفظ و راح ارسل لكم شرح فيديو كاااامل من شر للملخص‪.‬‬
‫عملي ح‬

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Chapter1
 Question: Define Strategic management and what are the attributes related to
it?

The strategic management of an organization includes three ongoing processes:

analyses, decisions, and actions to create and sustain competitive advantage.
Strategic management is concerned with the analysis of strategic goals (vision,
mission, and strategic objectives) along with the analysis of the internal and
external environments of the organization. Strategy refers to the ideas,
decisions, and actions that enable a firm to succeed. First, Leaders must make
strategic decisions. These decisions address two basic questions: What industries
should we compete in? How should we compete in those industries? These
questions also often involve an organization’s domestic and international
operations. Second, the essence of strategic management is the study of why
some firms outperform others.

Managers must identify the way of compete in order to create competitive

advantages in the marketplace. Managers need to determine if the firm should
position itself as the low-cost producer or develop products and services that are
unique and will enable the firm to charge premium prices. Or should they do
some combination of both. Those important points must be taken into account to
create competitive advantage. Competitive Advantage refers to firm’s resources
and capabilities that enable it to overcome the competitive forces in its industry.

Sustainable competitive advantage cannot be achieved through operational

effectiveness alone, but also strategy must be taken into account. Operational
effectiveness means performing similar activities better than rivals. If we talk
about innovations, sll the innovations is important, but none lead to sustainable
competitive advantage because everyone is doing them. While, strategy is all
about being different. Sustainable competitive advantage is possible only by
performing different activities from rivals or performing similar activities in
different ways. For Example: IKEA have developed unique systems that have
provided them with sustained competitive advantages.

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 The 5508088
Four Key5‫ي‬ ‫معا‬
Attributes of Strategic Management

 First, strategic management is directed toward overall organizational goals

and objectives. it must be directed to total organization, not just a single
functional area. For example, operations may schedule lower unit costs
‫ يجب ان تتعلق بالشركة ككل وليس باالقسام‬.‫ االدارة االستراتيجية الزم تهتم بالشركة واهدافها‬:‫أوال‬
.‫الفردية‬
.‫و بعض المؤلفين اشاروا الى مفهوم الشركة و االشخاص‬

 Second, strategic management includes multiple stakeholders in decision

making. Stakeholders are those individuals, groups, and organizations that
have a “stake” in the success of the organization, including owners,
employees, customers, suppliers, the community at large, and so on.
Managers will not be successful if they focus on a single stakeholder. For
example, if they focus on generating profits for the owners only, employees
may become dissatisfied, customer service may suffer.
.‫ االدارة االستراتيجية الزم تتضمن جميع الستيك هولدرز بعين االعتبار عند اتخاذ القرار‬:‫ثانيا‬

 Third, strategic management requires incorporating both short-term and

long-term perspectives. Managers must maintain both a vision for the future
of the organization and a focus on its present operating needs.
‫ االدارة االستراتيجية الزم تتضمن التركيز على اللونغ تيرم و الشورت تيرم‬:‫ثالثا‬

 Fourth, strategic management involves the recognition of trade-offs between

effectiveness and efficiency. Some authors have referred to this as the
difference between “doing the right thing” (effectiveness) and “doing things
right” (efficiency.
.‫ االدارة االستراتيجية الزم تعترف و توازن بين الفعالية و الكفاءة‬:‫رابعا‬

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 Question 5 ‫معاي‬the strategic management process and its three levels?
: Discuss

 Strategic management process refers to strategy analysis, strategy

formulation, and strategy implementation. Henry Mintzberg defined two types
of strategy.

First one is intended strategy, which

organizational decisions are
determined only by analysis. Second
one is realized strategy, which are
organizational decisions are
determined by both analysis and
unpredictable environmental
developments and impacted by
external factors. For example: in the
end of 2018 AOU has changed its
strategy from intended to realized
because of bad weather and changed
the exam period and structures.

 Henry mitezberg discuss in his article three processes which are;

 First, Strategy analysis; study of firms’ external and internal environments,
and their fit with organizational vision and goals. may be looked upon as the
starting point of the strategic management process. It consists of the “advance
work” that must be done in order to effectively formulate and implement
strategies.
.‫ عن طريق عمل دراسة داخلية و خارجية للبيئة مرتبطة باهداف الشركات‬,, ‫ تحليل االستراتيجية‬:‫أوال‬
‫و‬
.‫هي اول خطوة لعمل االستراتيجية‬

 Many strategies fail because managers may want to formulate and implement
strategies without a careful analysis of the goals of the organization and
without a thorough analysis of its external and internal environments
.‫كثير من المدراء يفشلون بسبب انهم يفكرون بالتخطيط و التنفيذ وما يهتمون بالتحليل‬

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 Second, 5 ‫معاي‬formulations; decisions made by firms regarding
Strategy
investments, commitments, and other aspects of operations that create and
sustain competitive advantage. developed at several levels. First, business-
level strategy addresses the issue of how to compete in a given business to
attain competitive advantage. Second, corporate-level strategy focuses on two
issues: (a) what businesses to compete in and (b) how businesses can be
managed to achieve the goal to create more value by working together than
by operating as standalone businesses. Third, a firm must develop
international strategies as it ventures beyond its national boundaries. Fourth,
managers must formulate effective strategy

 Third, Strategy Implementation; actions made by firms that carry out the
formulated strategy, including strategic controls, organizational design, and
leadership. strategies are of no value if they are not well implemented.

 Strategy implementation involves ensuring proper strategic controls and

organizational designs, which includes establishing effective means to
coordinate and integrate activities within the firm as well as with its suppliers,
customers, and alliance partners. Leadership plays a central role to ensure that
the organization is committed to excellence and ethical behavior.

corporate governance the relationship among various participants in determining the direction and
performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by
the chief executive officer), and (3) the board of directors.

stakeholder management a firm’s strategy for recognizing and responding to the interests of all its salient
stakeholders.

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social responsibility the expectation that businesses or individuals will strive to improve the overall
welfare of society.

Organizational Vision A vision is a goal that is “massively inspiring, overarching, and long term.” 89 It
represents a destination that is driven by and evokes passion. For example, Wendy Kopp, founder of
Teach for America, notes that her vision for the organization, which strives to improve the quality of
inner-city schools, draws many applicants: “We’re looking for people who are magnetized to this notion,
this vision, that one day all children in our nation should have the opportunity to attain an excellent
education.

Chapter2
 Question: Discuss AWARENESS OF THE EXTERNAL ENVIRONMENT?
Ram Charan, an adviser for many CEOs, provides three important processes ,,
scanning, monitoring, and gathering competitive intelligence ,, used to develop
forecasts which are important for scenario planning also the external
environment and the role of SWOT analysis.
‫ قدم ثالثة بروسس لتطوير التوقعات (لوضع االستراتيجية) و‬.‫رام هو مستشار لعديد من المدراء التنفيذيين‬
‫عمل سيناريو جيد للشركة مع اخذ بعين االعتبار االكسترنال انفيرونمنت‬

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Environmental
55080885 scanning
‫ معاي‬refers to monitor the firm’s external environment to
predict environmental changes and detect changes already exists. Experts agree
that business requires a combination of knowing your business and your
customer as well as keeping an eye on what’s happening around you on the
competitive environment.
.‫ يتضمن توقع التغييرات الي راح تصير باالكسترنال انفيرونمنت و التغييرات الحالية‬:‫ فحص البيئة‬:‫اوال‬

Environmental monitoring refers to a firm’s analysis of the external environment

that tracks the evolution of environmental trends, events, or activities. One of the
authors identifies that firms monitor is important their strategy process.
Examples of such indicators included: A Johnson & Johnson monitor Percentage
of gross domestic product (GDP) spent on health care
‫ يشير الى تحليل االكسترنال انفيرونمنت ومتابعة التطورات لمؤشرات و احداث و‬:‫ مراقبة البيئة‬:‫ثانيا‬
:‫ مثال‬.‫ احد العلماء ذكر ان مراقبة البيئة مهم كمدخل لعملية وضع االستراتيجية‬.‫نشاطات االنفيرونمنت‬
.‫ يعتبر احد عوامل مراقبة البيئة‬GDP‫الـ‬

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5 ‫ معاي‬refers to a firm’s activities of collecting and interpreting
5508088intelligence
Competitive
data on competitors, defining and understanding the industry, and identifying
competitors’ strengths and weaknesses. Keeping track of competitors has
become easier today with the amount of information that is available on the
Internet. For example, banks continually track home loan, auto loan, and
certificate of deposit (CD) interest rates charged by rivals
‫ و معرفة نقاط الضعف و‬.‫ الذكاء التنافسي يشير الى تجميع و تحليل البيانات بخصوص المناااااافسين‬:‫ثالثا‬
.‫القوة لكل منهم‬

Environmental forecasting refers to the development about the direction, scope,

speed, and intensity of environmental change. The problem is that
underestimating (‫ )جيد الغير التقييم‬uncertainty can lead to poot strategy. poor
predictions about technology change can lead to bad strategy formulation. For
example: Microsoft CTO Nathan Myhrvold said “Apple is already dead” 1997
.‫ هو التطورات اللي راح تصيربالبيئة من ناحية التوجه و السرعة و شدة التنافس‬:‫ توقع البيئة‬:‫رابعا‬

Scenario analysis refers to approach to environmental forecasting that involves

experts’ detailed assessments of societal trends, economics, politics, technology,
or other dimensions of the external environment.

SWOT analysis role is To understand the business environment of a particular

firm, you need to analyze both the general environment and the firm’s industry
and competitive environment which refers to internal and external environment
for a particular organization.

SWOT analysis is a framework for analyzing a company’s internal and external

environments and that stands for strengths, weaknesses, opportunities, and
threats. The Strengths and Weaknesses refer to the internal conditions of the
firm—where your firm excels (strengths) and where it may be lacking relative to
competitors (weaknesses). Opportunities and Threats are environmental
conditions external to the firm.

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 Question: Discuss The Five Forces Model?

Competitive environment refers to factors that related to an industry and affect a

firm’s strategies. The “five forces” model developed by Michael E. Porter has been
the used as analytical tool for analysis the competitive environment, especially
the ability of firms in that industry to set prices and minimize costs.

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1) Threat 5 ‫ي‬entrant:
of new ‫معا‬ The possibility that the profits of established firms in
the industry may be taken by new competitors.

The threats of new entrants depend heavily on the Barriers to entry ‫الدخول‬
‫ حواجز‬if the barriers are high, new entrants will face difficulty in enter the
market. The barriers are;

a) Economics of scale: spreading the costs of production over the number of

units produced. The cost of a product per unit declines and the output
increases

b) Product Differentiation: When existing competitors have strong brand name

and customer loyalty, product differentiation creates a barrier to entry by
forcing entrants to spend heavily to overcome existing customer loyalties.

c) Capital requirements: the need to invest large financial resources to compete

can deter new entrants.

d) Access to distribution channels: Entrants firm will have limited capacity within
distribution channels and suppliers.

e) Switching Costs: the existence of one-time costs that the buyer faces when
switching from one supplier’s product or service to another.

 The Impact on Internet for new entrants: the threat of new entrants has
increased because digital and Internet-based technologies lower barriers to
entry. For example, businesses that reach customers primarily through the
Internet may enjoy savings on other traditional expenses such as office rent.

2) The power of buyers: the threat that buyers may force down prices, bargain
for higher quality or more services. The buyers are very powerful if they; It
is concentrated or purchases large volumes relative to seller sales. The
buyer faces few switching costs. It earns low profits.

 The Impact on Internet for buyer: The Internet may increase buyer power by
providing consumers with more information to make buying decisions and by
lowering switching costs. Also buyers can access global market via internet.

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3) The power of supplier:
Suppliers can exert bargaining power by threatening to raise prices or reduce the
quality of purchased goods and services. Company can depend on different
suppliers to reduce the power of supplier.

 It’s more concentrated than the industry it sells. Like Microsoft, it’s near to
monopoly operating the system
.‫ مثل مايكروسوفت اكبر شركة اوبريشن للسيستم‬,‫اذا كان التركيز على الموزع‬

 The industry is not an important customer of the supplier. It arises when

supplier serving many companies.
‫ شركات بارباح متساوية‬9 ‫ يعني اذا السبالير يعتمد على‬.‫اذا السبالير ما يعتمد على شركة معينه بارباحه‬
.‫ماراح تفرق معاه اذا خسر تعامله مع شركة وحده‬

 Firm faces switching costs in changing suppliers. Shifting supplier is difficult

and costly to the company.
‫ بحيث راح تاخذ وقت لتعليم الموزع‬,‫اذا الشركة تبي تغيير تعاملها من موزع الى موزع اخر راح يكلفها‬
.‫ بالشركة و تكاليف التعليم‬operation‫الجديد طريقة الـ‬

 There is no substitute for what the supplier provides.

.‫اذا كان الموزع محتكر خدمة او بضاعه معينه وما كان في بديل لهالمنتج راح يكون بوضع قوي جدا‬

 The Impact on Internet for supplier: Use of the Internet and digital
technologies to speed up and streamline the process of acquiring supplies is
already benefiting many sectors of the economy. But the net effect of the
Internet on supplier power will depend on the nature of competition in a given
industry.

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4) The threat of substitutes: products and services that serve the same
customer needs as the industry’s products and services.

Identifying substitute products involves searching for other products or services

that can perform the same function as the industry’s offerings. the rate of
improvement in the price–performance relationship of the substitute product (or
service) is high

 The Impact on Internet for substitute: the Internet has created a new
marketplace and a new channel. In general, the threat of substitutes is high
because the Internet introduces new products from different organizations
worldwide.

5) Rivalry among existing competitors: Firms use tactics like price competition,
advertising battles, product introductions, and increased customer service or
warranties. Rivalry occurs when competitors sense the pressure or act on an
opportunity to improve their position

 The Impact on Internet for existing competitors: rivalry among competitors is

likely to be more intense. Organizations that are using technology in their
production process are likely to capture greater profitability with the new
technology.

general environment factors external to an industry, and usually beyond a firm’s control, that affect a firm’s
strategy

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data analytics The process of examining large data sets to uncover hidden patterns, market trends, and customer
preferences. Corporations are increasingly collecting and analyzing data on their customers, including data on
customer characteristics, purchasing patterns, employee productivity, and physical asset utilization

strategic groups clusters of firms that share similar strategies.

First, strategic groupings help a firm identify barriers to mobility that protect a group from attacks by other groups.
The second value of strategic grouping is that it helps a firm identify groups whose competitive position may be
marginal or tenuous. Third, strategic groupings help chart the future directions of firms’ strategies.

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Chapter3
 Question: Discuss Value Chain Analysis Approach?
Value-chain analysis views the organization as a sequential process of value-
creating activities. This approach was created by Michael Porter. Value is the
amount that buyers are willing to pay for goods and services measured by total
revenue.

Porter described two different categories of activities. First, primary activities

which means activities of the value chain that refer to the physical creation of the
product or service, its sale and transfer to the buyer, and its service after sale,
including inbound logistics, operations, outbound logistics, marketing and sales,
and service.
‫أول نوع من الفاليو شين هو نشاطات‬
.‫اساسية‬

Second, support activities means activities of the value chain that either add
value by themselves or add value through important relationships with both
primary activities and other support activities, including procurement, technology
development, human resource management, and general administration.

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 Primary 5 ‫ معاي‬There are five categories of primary activities are involved
Activities:
in competing in any industry,Each category is divisible into a number of distinct
activities that depend on the particular industry and the firm’s strategy.

 First, Inbound logistics is primarily associated with receiving, storing, and

distributing inputs to the product. It includes material handling, warehousing,
inventory control, vehicle scheduling, and returns to suppliers. For example:
Just-In-Time system for toyota

 Second, Operations include all activities associated with transforming inputs

into the final product form, such as machining, packaging, testing, printing,
and facility operations. Organization should create environmentally friendly
manufacturing is one way to use operations to achieve competitive advantage

 Third, Outbound logistics is associated with collecting, storing, and distributing

the product or service to buyers. These activities include finished goods,
warehousing, material handling, delivery vehicle operation, order processing,
and scheduling. For example: Campbell Soup uses an electronic network to
facilitate its continuous-replenishment program with its most progressive
retailers.

 Fourth: Marketing and sales activities are associated with purchases of

products and services by end users and the inducements used to get them to
make purchases. They include advertising, promotion, sales force, quoting,
channel selection, channel relations, and pricin. For Example: Mercedes-Benz
is a firm that has aggressively pushed for product placement in Hollywood
movies.

 Fifth: The service primary activity includes all actions associated with providing
service to enhance or maintain the value of the product, such as installation,
repair, training, parts supply, and product adjustment.

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5508088
 Support 5 ‫معاي‬in the value chain can be divided into four categories. Each
activities
category of the support activity is divisible into a number of distinct value
activities that are specific to a particular industry. For example, technology
development’s activities may include component design, feature design and
testing

 First, Procurement refers to purchasing inputs used in the firm’s value chain,
including raw materials, supplies, and other items as well as assets such as
machinery, laboratory equipment, office equipment, and buildings. For
example: Microsoft has improved its procurement process (and the quality of
its suppliers) by providing formal reviews of its suppliers.

 Second, Technology Development refers to activities associated with the

development of new knowledge that is applied to the firm’s operations.
Technology development related to the product and its features supports the
entire value chain, while other technology development is associated with
particular primary or support activities. for example: Techniq is a world leader
in project management, engineering, and construction for the energy industry.

 Third, human resource management refers to activities involved in the

recruiting, hiring, training, development, and compensation of all types of
personnel. for example: JetBlue Airways Corporation is obsessed with
hiring superior employees.

 Fourth, general administration refers to planning, finance, accounting, legal

and government affairs, quality management, and information systems. Also
refers to activities that support the entire value chain and not individual
activities. for example: chief executive officers (CEOs) such as Jack Ma and
Mark Zuckerberg have been credited with playing critical roles in the success
of Alibaba and Facebook.

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 Interrelationships among Value-Chain

Activities within and across Organizations
Managers must not ignore the importance of relationships among value-chain
activities. There are two levels: interrelationships among activities within the firm
and relationships among activities within the firm and with other stakeholders

On the first level, human resources needs to be integrated with the other
functional areas of the firm. While second level, Campbell Soup’s use of electronic
networks enabled it to improve the efficiency of outbound logistics.

it is important to focus on the interrelationship between the organization and its

most important stakeholder like its customers. Some firms find great value by
directly incorporating their customers into the value creation process. Firms can
do this in one of two ways

First, they can employ the “prosumer” concept and directly team up with
customers to design and build products to satisfy their particular needs. Working
directly with customers in this process provides multiple potential benefits for the
firm.

Second, firms can leverage the power of crowdsourcing. crowdsourcing occurs

when firms tap into the knowledge and ideas of a large number of customers and
other stakeholders, typically through online.

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 Question: Discuss Resources Based View (RBV)?

Resource-based view (RBV) of the firm refers to perspective that firms’

competitive advantages are due to their strategic resources that are valuable,
rare, costly to imitate, and costly to substitute. RBV combines two perspectives;
the internal and external analysis of the industry and its competitive
environment. It goes beyond the traditional SWOT analysis by integrating internal
and external perspectives.

There are two types of firm's resources. Tangible resources including physical
assets, financial resources, organizational resources, and technological resources.
And intangible assets that are difficult to identify including human resources,
innovation resources, and reputation resources.

While organizational capabilities refer to the competencies and skills that a firm
employs to transform inputs into outputs. For example; Apple, the majority of
components used in its products can be characterized as proven technology, such
as touch-screen and MP3-player functionality

Resources alone are not a basis for competitive advantages, nor are advantages
sustainable over time. Resource to provide a firm with the potential for a
sustainable competitive advantage, it must have four attributes which will discuss
in details.

First, Value; Organizational resources can be a source of competitive advantage

only when they are valuable. Resources are valuable when they enable a firm to
formulate and implement strategies that improve its efficiency or effectiveness.
The SWOT framework suggests that firms improve their performance only when
they exploit opportunities or or minimize threats

Second, Rare; If competitors or potential competitors also possess the same

valuable resource, it is not a source of a competitive advantage because all of
these firms have the capability to exploit that resource in the same way. For a
resource to provide competitive advantages, it must be rare.

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hard to 5be‫ي‬imitated;
Third,5508088 ‫معا‬ if a resource is inimitable, and then any profits
generated are more likely to be sustainable. Having a resource that competitors
can easily copy generates only temporary value. Because managers want to base
long-term strategies on resources that are imitable.

There are four ways that make the resources hard to be imitated.
1) Physical Uniqueness which is difficult to copy like perfect location or copy
rights.

2) Path Dependency means that resources are unique and scarce because
competitors cannot get them easily.

3) Causal Ambiguity means characteristic of a firm’s resources that is costly to

imitate because a competitor cannot determine what the resource is and how
it can be re-created

4) Social Complexity means characteristic of a firm’s resources that is costly to

imitate including relations among managers, organizational culture, and
reputation with suppliers and customers

Fourth, No substitute; the fourth requirement for a firm resource to be a source

of sustainable competitive advantage is that there must be no substitute for it.
there are two types of resources that are able to be substituted;

First, it may be able to substitute a similar resource that enables it to develop and
implement the same strategy, like staff.
Second, very different firm resources can become strategic substitutes. For
example, Internet booksellers

Finally, The following four characteristics must be included in the resources to

gain full competitive advantage for the firm.

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 Question: Discuss the Balanced Scorecard?

Balanced scorecard; is method of evaluating a firm’s performance using

performance measures from the customer, internal, innovation and learning, and
financial perspectives. The balanced scorecard enables managers to consider their
business from four key perspectives: customer, internal, innovation and learning,
and financial.

1) First, customer perspective measures of firm performance that indicate how

well firms are satisfying customers’ expectations. The balanced scorecard
requires that managers translate their general mission statements on
customer service

2) Second, internal business perspective measures of firm performance that

indicate how well firms’ internal processes, decisions, and actions are
contributing to customer satisfaction. These include factors that affect cycle
time, quality, employee skills, and productivity

3) Third, innovation and learning perspective measures of firm performance that

indicate how well firms are changing their product and service offerings to
adapt to changes in the internal and external environments. Three categories
of intangible assets are critically important: human capital (skills, talent, and
knowledge), information capital (information systems, networks), and
organization capital (culture, leadership).

4) Fourth, Financial Perspective measures of firms’ financial performance that

indicate how well strategy, implementation, and execution are contributing to
improvement. like yearly financial statements for the organization.

But in same time there’s disadvantage for this approach. Limitations of the
Balanced Scorecard: not quick fix, needs commitment to learn, need employee
involvement to improve, needs cultural change and needs data on actual
performance.

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55080885 ‫معاي‬ Chapter4

knowledge economy an economy where wealth is created through the effective management of
knowledge workers instead of by the efficient control of physical and financial assets
 Question: Discuss the Intellectual capital and the gap between market value
and book value?

Human capital is growing more valuable in every business. Intangible assets,

mostly derived from human capital, have increased from 17 percent in 1975 to 84
percent in 2015. The gap between a firms market value and book value is based
on the Intellectual capital that firm own.

Intellectual capital refers to the difference between the market value of the firm
and the book value of the firm, including assets such as reputation, employee
loyalty and commitment, customer relationships, company values, brand names,
and the experience and skills of employees.

How do companies create value through knowledge? The general answer is to

attract human capital that creates products and services of value over time.

First, human capital is the “individual capabilities, knowledge, skills, and

experience of the company’s employees and managers. Second, social capital is
the network of friendships and working relationships between talented people
both inside and outside the organization. Third is the concept of “knowledge,”
which comes in two different forms.

First, there is explicit knowledge which is knowledge that is noted, documented,

easily reproduced, and widely distributed, For Example; Computer Code.

Second, tacit knowledge refers to knowledge that is in the minds of employees

and is based on their experiences and backgrounds. For Example individual
experience.

Finally, another important issue is the role of “socially complex processes,” which
include leadership, culture, and trust. These processes play a central role in the
creation of knowledge.

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Attracting Human Capital

The first step in the process of building superior human capital is input control:
attracting and selecting the right person.
“Hire for Attitude, Train for Skill” Organizations are increasingly emphasizing general knowledge and experience,
social skills, values, beliefs, and attitudes of employees. Sound Recruiting Approaches and Networking Companies
that take hiring seriously must also take recruiting seriously

Developing Human Capital Encouraging Widespread Involvement Developing human capital requires the active
involvement of leaders at all levels. It won’t be successful if it is viewed only as the responsibility of the human
resource department.

Mentoring
Mentoring is most often a formal or informal relationship between two people—a senior mentor and a junior
protégé. 48 Mentoring can potentially be a valuable influence in professional development in both the public and
private sectors. The war for talent is creating challenges within organizations to recruit new talent as well as retain
talent.

Mentoring is traditionally viewed as a program to transfer knowledge and experience from more senior managers
to up-and-comers.

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Retaining Human Capital
leaders can provide the challenges, work environment, and incentives to keep productive employees and
management from wanting to bail out, or they can use legal means such as employment contracts and noncompete
clauses.

360-degree evaluation and feedback systems

superiors, direct reports, colleagues, and even external and internal customers rate a person’s performance

social network analysis analysis of the pattern of social interactions among individuals. Convey needed resources.
Have the opportunity to exchange information and support. Have the motivation to treat each other in positive
ways. Have the time to develop trusting relationships that might improve the groups’ effectiveness.
closure
the degree to which all members of a social network have relationships (or ties) with other group members.

Bridging relationships, in contrast to closure, stress the importance of ties connecting people. Employees who
bridge disconnected people tend to receive timely, diverse information because of their access to a wide range of
heterogeneous information flows. Such bridging relationships span a number of different types of boundaries.
bridging relationships relationships in a social network that connect otherwise disconnected people

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 Question 5 ‫معاي‬the six areas that should be managed to benefit from
: Discuss
diverse of workforces?

It is important to point out that companies are increasingly realizing that the
payoff from enhancing their human capital can be substantial ( ‫) انجاز‬. Managing
diversity is important role in enhancing human capital

A combination of demographic trends and globalization of business have made

the management of cultural differences a critical issue. Such demographic
changes have implications not only for the labor pool but also for customer bases,
which are also becoming more diverse. The effective management of diversity can
enhance the social responsibility goals of an organization.

there are many other benefits as well. Six other areas where sound management
of diverse workforces can improve an organization’s effectiveness and
competitive advantages are (1) cost, (2) resource acquisition, (3) marketing, (4)
creativity, (5) problem solving, and (6) organizational flexibility.

 Cost argument. As organizations become more diverse, firms effective in

managing diversity will have a cost advantage over those that are not.
‫التكلفة‬
 Resource acquisition argument. Firms with excellent reputations will have an
advantage in the competition for top talent.
)‫االستحواذ على الموارد (البشرية‬
 Marketing argument. For multinational firms, the staff from other cultures can
help on marketing efforts will be very useful. A similar rationale applies within
domestic operations.
‫التسويق‬

 Creativity argument. Less emphasis on norms of the past and a diversity of

perspectives will improve the level of creativity.
‫االبداع‬

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 55080885 ‫ي‬
Problem-solving ‫معا‬
argument. based on decision-making and problem-solving
groups typically produces better decisions because of a wider range of
perspectives as well as more thorough analysis.
‫حل‬
 Organizational flexibility argument. With effective programs to enhance ‫المشاكل‬
workplace diversity, systems become less determinant, less standardized, and
therefore more fluid ( ‫ ) سلس‬.
‫مرونة الشركة‬

Finally, Most managers accept that employers benefit from a diverse workforce.
However, this notion can often be very difficult to prove or quantify, particularly
when it comes to determining how diversity affects a firm’s ability to innovate.

 Question: Discuss the difference between E-Team and traditional Team?

Sharing knowledge and information throughout the organization can be a means

of sustain resources, developing products and services, and creating new
opportunities. There two ways to show how technology can be used to leverage
human capital and knowledge within organizations as well as with customers and
suppliers beyond their boundaries. As we all know, email is an effective means of
communicating

 Electronic Team is a team of individuals that completes tasks primarily through

email communication. There are two key differences between e-teams and
more traditional teams:

1. E-team members either work in geographically separated workplaces or may

work in the same space but at different times. E-teams may have members
working in different spaces and time zones, as is the case with many
multinational teams.

2. Most of the interactions among members of e-teams occur through electronic

communication channels such as fax machines.

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 Advantages of E-Team; There are multiple advantages of e-teams.
First, e-teams are less restricted by the geographic constraints that are placed on
face-to-face teams.

Second, e-teams can be very effective in generating “social capital”—the quality

of relationships and networks that form.

 Challenges; there are challenges associated with making e-teams effective.

Successful action by both traditional teams and e-teams requires that:

1) Members should have high level of knowledge and resources.

2) E-team leaders and members should know how to combine individual

resources for a coordinate effectively.

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Chapter5
 Question: Discuss the overall cost leadership, differentiation, focus strategy ?

Michael Porter presented three generic strategies that a firm can use to
overcome the five forces and achieve competitive advantage. Each of Porter’s
generic strategies has the potential to allow a firm to outperform rivals in their
industry.

The first, overall cost leadership, is based on creating a low-cost position. Here, a
firm must manage the relationships throughout the value chain and lower costs
throughout the entire chain.

Second, differentiation requires a firm to create products and/or services that are
unique and valued. Here, the primary emphasis is on “nonprice” attributes for
which customers will gladly pay a premium.

Third, a focus strategy directs toward narrow product lines, buyer segments, or
targeted geographic markets and they must attain advantages through either
differentiation or cost leadership.

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 Overall 5‫ي‬
Cost ‫معا‬
Leadership

 The first generic strategy is overall cost leadership. a firm’s generic strategy
based on appeal to the industry wide market using a competitive advantage
based on low cost. It includes: construction of efficient-scale facilities. Cost
reductions from experience. Less cost and overhead control. Cost minimization
in all activities in the firm’s value chain, such as R&D, service, sales force, and
advertising.

 One factor often central to an overall cost leadership strategy is the

experience curve, which refers to how business “learns” to lower costs as it
gains experience with production processes. Experience curve refers to the
decline in unit costs of production as cumulative output increases.

 To generate above-average performance, a firm following an overall cost

leadership position must attain competitive parity on the basis of
differentiation relative to competitors. Competitive parity refers to a firm’s
achievement of similarity with competitors with respect to low cost,
differentiation, or other strategic product characteristic.

 Pitfalls of an overall cost leadership strategy include: Too much focus on one
or a few value-chain activities, Increase in the cost of the inputs, A strategy
that can be imitated too easily, Reduced flexibility

 Impact on five forces; an overall low-cost position enables a firm to achieve

above-average returns despite strong competition. It protects a firm against
rivalry from competitors, because lower costs allow a firm to earn high returns

 For example of Low cost in Value chain – HRM: Minimize costs associated with
employee turnover through effective policies.

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 Differentiation

 a differentiation strategy; a firm’s generic strategy based on creating

differences in the firm’s product or service offering by creating something that
is perceived as unique and valued by customers. Differentiation can take many
forms as Prestige or brand image by BMW.

 Firms may differentiate themselves along several different dimensions at once.

For example, the Cheesecake Factory, offering high-quality food, the widest
and deepest menu in its class of restaurants, and premium locations.

 Firms achieve and sustain differentiation advantages and attain above-average

performance when their price premiums exceed the extra costs incurred in
being unique.

 For example of Low cost in Value chain – HRM: Programs to attract talented
engineers and scientists.

 Pitfalls of an differentiation strategy include: Uniqueness that is not valuable.

Too much differentiation. Too high a price premium. Differentiation that is
easily imitated

 Impact on five forces; Differentiation provides protection against rivalry since

brand loyalty lowers customer sensitivity to price. Supplier power is also
decreased because there is a certain amount of prestige associated with being
the supplier to a producer of highly differentiated products and services.

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 Focus

 A focus strategy is based on the choice of a narrow competitive scope within

an industry. A firm following this strategy selects a segment or group of
segments and put its strategy to serve them.

 Firm has two perspectives. In a cost focus, a firm tries to create a cost
advantage in its target segment. In a differentiation focus, a firm seeks to
differentiate in its target market.

 Both types of the focus strategy rely on providing better service than broad-
based competitors that are trying to serve the focuser’s target segment. Cost
focus exploits differences in cost behavior in some segments, while
differentiation focus exploits the special needs of buyers in other segments.

 For example of Low cost in Value chain – HRM: Programs to attract talented
engineers and scientists.

 Pitfalls of an differentiation strategy include: Cost advantages may reduce

within the narrow segment. Even product and service offerings that are highly
focused are subject to competition from new entrants and from imitation. it
can become too focused to satisfy buyer needs.

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 Question 5 ‫معاي‬the Life Cycle stages?
: Discuss

The industry life cycle refers to the stages of introduction, growth, maturity, and
decline that occur over the life of an industry. It is useful to think in terms of
broad product lines such as personal computers. It's important to note that
products and services go through many cycles of innovation and renewal.
Typically, only fad products ‫ عابر منتج‬have a single life cycle. Maturity stages of an
industry can be “transformed” or followed by a stage of rapid growth if consumer
tastes change, technological innovations take place, or new developments occur.

 Strategies in the Introduction Stage

In the introduction stage, products are unfamiliar to consumers. the first stage of
the industry life cycle, characterized by (1) new products that are not known to
customers, (2) poorly defined market segments, (3) unspecified product features,
(4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a
need for financial support.

Success requires an emphasis on research and development and marketing

activities to enhance awareness. There’s an advantage to being the “first mover”
in a market. For example: Coca-Cola’s success in becoming the first soft-drink
company

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 Strategies 5‫ي‬ ‫معا‬
the Growth Stage

The growth stage is characterized by strong increases in sales. the second stage of
the product life cycle, characterized by (1) strong increases in sales; (2) growing
competition; (3) developing brand recognition; and (4) a need for financing
complementary value-chain activities such as marketing, sales, customer service,
and research and development.

Revenues increase at an accelerating rate because (1) new consumers are trying
the product and (2) a growing of satisfied consumers are making repeat
purchases.

 Strategies in the Maturity Stage

In the maturity stage the third stage of the product life cycle, characterized by (1)
slowing demand growth, (2) saturated markets, (3) direct competition, (4) price
competition, and (5) strategic emphasis on efficient operations.

By positioning or repositioning their products in unexpected ways, firms can

change how customers mentally categorize them. Thus, firms are able to improve
products in the maturity phase of their life cycles and return them to the growth
phase.

Two positioning strategies that managers can use to affect consumers’ mental
shifts are reverse positioning and breakaway positioning, which associates the
product with a radically different category

Reverse positioning means offering products with addition fewer product

attributes and lower prices.

Breakaway positioning refers to offering products that are still in the industry but
are perceived by customers as being different. Like combining products’ features

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 Strategies 5‫ي‬ ‫معا‬
the Decline Stage

Decline stage is the fourth stage of the product life cycle, characterized by (1)
falling sales and profits, (2) increasing price competition, and (3) industry
consolidation.

The decline stage occurs when industry sales and profits begin to fall. Products in
the decline stage often consume a large share of management time and financial
resources relative to their potential worth.

In the decline stage, a firm’s strategic options become dependent on the actions
of rivals. If many competitors leave the market, sales and profit opportunities
increase. On the other hand, prospects are limited if all competitors remain. There
are Four basic strategies are available in the decline phase: maintaining,
harvesting, exiting, and consolidating

1) Maintaining refers to keeping a product going without significantly reducing

marketing support, technological development, or other investments, in the
hope that competitors will eventually exit the market.

2) Harvesting ‫ حصاد‬involves a strategy of wringing as much profit as possible

out of a business in the short to medium term by reducing costs.

3) Exiting the market involves dropping the product from a firm’s portfolio.

4) Consolidation ‫ توحيد‬involves a firm’s acquiring or merging with other firms

in an industry in order to enhance market power and gain valuable assets.

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