STRATEGIC MANAGEMENT

Let’s get to know each other!

Academic Background
• Certified Practising Accountant (“CPA”) | AU
• Masters of Financial Analysis | LA TROBE University, AU
• Masters of International Business | LA TROBE University, AU
• Bachelor of Commerce | RMIT University, VN

Working Experience
• CFO | Thien Loc – HG Joint Stock Company
• Freelance Advisor | Merger & Acquisition (“M&A”) and Consulting
MY PHAM (MSc, CPA Aus)
Services (Internal Process, Business Restructuring)
• Lecturer | UEF
• Manager | PWC (VIETNAM) LTD. – Assurance & Advisory Services
 Course Assessment and Class Rules
1. Assessment
Formative Assessment – 50%
} Attendance – 10% What should
} Case study – 20% we expect in
v Group presentation – 15%
v Workshop with guest lecturer – 5% this class?
} Mid-term test – 20% (Closed book)
Summative Assessment: Final exam – 50% (Multiple choice, Closed book)
Each voluntary contribution to class will have 0.1 bonus point to your This is a reverse class,
personal presentation mark! so you are
Each time you are called but can not answer the question, your personal recommended to read
presentation mark will be deducted 0.1 point! SO … BE ACTIVE! the book before going
2. Class rules:
to class. We will focus
more on case study
- No excuse for absence (unless providing formal evidence)
and discussion in this
Attendance count is at 13:15
classroom.
-

- Communication: only via email: mypt@uef.edu.vn

- Private zalo message: for very URGENT situation only
- Email responding time: 24 - 48 hours processing time
Group Presentation
} Form a team of 4-5 students
} Choose a REAL company that your group will study
} Tip 1. prioritise a company that you can access info for your
internal analysis such as culture, marketing, finance, operation,
R&D, HR;
} Tip 2: choose a company that has more than 1 product/business
line or more than 1 geographic location.
} Make a strategic management analysis of your chosen
company and then make a recommendation for its strategy
in the future
Group Presentation
} Your presentation will cover the following points:
} General information about the company and its vision, mission
} Develop an external environment analysis for the company and
construct an EFE matrix to identify opportunities, threats and
assess its adaptability to the changing environment
} Develop an internal environment analysis for the company and
construct an IFE matrix to identify strengths, weaknesses, and
assess its competitive advantages in the industry
} Develop SWOT matrix
} Make recommendations for its strategy in the future
Group Presentation
} Your presentation will be in WEEK 7:
v 80% of mark is from Lecturer
v The remaining 20% is from Peers
} Each group will present in 20’
} Each member has to present at least 3’
} Make it concise but informative!
} Group work: no contribution means no mark
} Before presentation session, send your slides and the assessment of your team
members’ contribution to email: mypt@uef.edu.vn. Name of file: SM-Class-
Group No.
Course Schedule
3st shift 13:00 - 15:20
4nd shift 15:50 - 18:10

No Week Date Content

1 06-05-24 The Nature of Strategy
1
2 08-05-24 The Business Vision and Mission
3 13-05-24
2 The External Assessment
4 15-05-24
5 20-05-24
3 The Internal Assessment
6 22-05-24
7 27-05-24 Strategies in Action
4
8 29-05-24 Analysis and Choices
9 03-06-24 Implementing Strategies: Functional Issues
5 Midterm Test
10 05-06-24
Implementing Strategies: Functional Issues (cont)
11 10-06-24 Global / International Issues
6
12 12-06-24
Group Presentation
13 17-06-24
7
14 19-06-24 Revision
15 Workshop (the exact schedule will be informed by the Faculty)
Textbooks
} Primary textbook: Fred R. David,
‘Strategic Management – A
Competitive Advantage Approach’,
14th edn
} Reference textbooks:
} Wheelen, TL, and Hunger JD,
‘Strategic management and business
policy – toward global sustainability’,
13th edn, Peason, 2012.
} Nguyễn Thị Liên Diệp, ‘Strategic
management and business policies’,
Statistics Publisher, 1997.
 Topic 1
Basic concepts of Strategic Management

Chapter 1
Learning Objectives

Basic concepts of
1 Strategy

Basic concepts of
2 Strategic Management
Learning Objectives

Basic concepts of
1 Strategy

Basic concepts of
2 Strategic Management
Basic concepts of Strategy

Definitions

Nature of Strategy

Hierarchy of Strategy
Let’s think about it!

Write down the 3 words or

phrases that you associate with
‘strategy’.
What is Strategy?
} The word “strategy” is derived from the Greek word “strat
gos”; stratus (meaning army) and “ago” (meaning
leading/moving). It is the art of the army general.
Have you
been a
strategist…

15
What is Strategy?
} Strategy is a well defined roadmap of an organization.
Strategy, in short, bridges the gap between “where we are”
and “where we want to be”. Strategy is directive and long-
term oriented.
} In essence, the strategic plan is a company’s game plan
} Misunderstandings of Strategy
} Strategy is action
} Strategy is desire
} Strategy is ambition
Nature of Strategy
n Strategic Management Questions

Where are
we?

Where do we
How can we want to go to?
get there?
Nature of Strategy
Basic strategic questions based on product life cycle
Stages Basic strategic questions
Introduction Which industry/ products should we invest? What is our
mission?

How can we compete?

Growth Coca Cola VS Pepsi:

Maturity How can we re-invest?

Decline How can we survive?

Mini-case: Why McDonald’s and Burger King flopped in Vietnam?

https://www.youtube.com/watch?v=l9pthhpd7So&t=67s
Strategy is Important

“Without a strategy the organization is like a ship without a rudder,

going around in circles.”
Joel Ross and Michael Kami
Hierarchy of Strategy

1. Long-term goals of the corporate

2. Choose industry/ product
3. Allocating resources to business units

1. Specific goals for each business unit/product

2. Competitive position of each business unit/product
3. Investments for each business unit/product

1. Specific goals for each department

2. Action plan for each department
3. Build differentiation
Learning Objectives

Basic concepts of
1 Strategy

Basic concepts of
2 Strategic Management
Basic concepts of Strategic Management

Definitions

Nature of Strategic
Management

Strategic Management Model

Let’s think about it!

What is:
- STRATEGIC
MANAGEMENT?
What is Strategic Management?
} There are also numbers of definition of Strategic
Management:
} Fred R.David (1986): Art & science of formulating,
implementing, and evaluating, cross-functional
decisions that enable an organization to achieve its
objectives.
} Wheelen and Hunger (2002): Strategic management is a
set of managerial decisions and actions that determines
the long-run performance of a corporation. It includes
environmental scanning (both external and internal),
strategy formulation (strategic or long-range planning),
strategy implementation, and evaluation and control.
The evolution of Strategic Management
As managers attempt to better deal with their changing
world, a firm generally evolves through the following four
phases of strategic management:
} Phase 1: Basic financial planning: the time horizon
involved is usually one year
} Phase 2: Forecast-based planning: incorporates
environmental data and extrapolates current trends
} Phase 3: Externally oriented strategic planning: top-down
planning that emphasizes formal strategy formulation and
leaves the implementation issues to lower management
levels
} Phase 4: Strategic management
Strategic Management Model
Strategic Management Process
} Environmental scanning
} the monitoring, evaluating and disseminating of information from the
external and internal environments to key people within the
organization
} Strategy formulation
} process of investigation, analysis, and decision-making that provides
the company with the criteria for attaining a competitive advantage
} includes defining the competitive advantages of the business, crafting
the corporate mission, specifying achievable objectives, and setting
policy guidelines
} Strategy implementation
} process by which strategies and policies are put into action through
the development of programs, budgets, and procedures
} Evaluation and control
} a process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired
performance
Strategic Management Process
} Mission: purpose or reason for the organization’s
existence
} Objectives: results of planned activity. It should tell what
is to be accomplished by when and quantified if possible
} Strategies: forms a comprehensive master approach that
states how the corporation will achieve its mission and
objectives by maximizing competitive advantage and
minimizing competitive disadvantage
} Policy: a broad guideline for decision-making that links
formulation of a strategy with its implementation
} Program: a statement of the activities or steps needed to
support a strategy
Strategic Management Process
} Budget: a statement of a corporation’s programs in terms
of dollars. Used in planning and control, a budget lists the
detailed cost of each program.
} Procedures: are a system of sequential steps or
techniques that describe in detail how a particular task or
job is to be done.
} Performance: result of activities. It includes actual
outcomes of the strategic management process
} Feedback/learning process: revise or correct decisions
based on performance
Strategic Decision
} Strategic decisions: deal with the long-term future of an
entire organization and have three characteristics:
} Rare: Strategic decisions are unusual and typically have no
precedent to follow.
} Consequential: Strategic decisions commit substantial
resources and demand a great deal of commitment from
people at all levels.
} Directive: Strategic decisions set precedents for lesser
decisions and future actions throughout an organization.
Initiation of Strategy: Triggering Events
} A triggering event is something that acts as a stimulus for
a change in strategy. Some possible triggering events are:
} New CEO
} External intervention
} Threat of a change in ownership
} Performance gap
} Strategic inflection point
Strategic Management Process

} Strategic Management Process is:

} Dynamic & continuous
} More formal in larger organizations
} Communication is a key to successful strategic
management
Creating a Learning Organization
} Strategic flexibility
}
the ability to shift from one dominant strategy to another
} demands long-term commitment to development and
nurturing of critical resources
} also demands that the company become a learning
organization
} Learning organizations are skilled at four main activities:
} Solving problems systematically
} Experimenting with new approaches
} Learning from the organization’s own experiences and past
history as well as from the experiences of others
} Transferring knowledge quickly and efficiently throughout
the organization
Let’s think about it!

How these factors impact Strategic

Management?
- Globalization

- Innovation

- Sustainability
Challenges to Strategic Management
} Globalization: the integrated internationalization of
markets and corporations.
} Innovation: describes new products, services,
methods, and organizational approaches that allow
the business to achieve extraordinary returns
} Sustainability: refers to the use of business
practices to manage the triple bottom line:
} the management of traditional profit/loss
} the management of the company’s social responsibility
} the management of its environmental responsibility
Let’s think about it!

What are:
The benefits of strategic
management?
Benefits of strategic management
Financial Benefits
} More profitable and successful
} Showed significant improvement in sales, profitability,
and productivity
} Exhibited superior long-term financial performance
Benefits of strategic management

Nonfinancial Benefits
} Enhanced awareness of threats
} Improved understanding of competitors’ strategies
} Increased employee productivity
} Reduced resistance to change
} Clearer understanding of performance-reward relationship
} Enhanced problem-prevention capabilities
Benefits of strategic management
A survey of nearly 50 corporations in a variety of countries and
industries found the three most highly rated benefits of strategic
management to be:
} Clearer sense of strategic vision for the firm
} Sharper focus on what is strategically important
} Improved understanding of a rapidly changing environment
Let’s think about it!

Why:
- Some firms DO NO
Strategic Planning?
Why Some Firms Do No Strategic Planning
} Lack of knowledge of } Fear of failure
strategic planning } Overconfidence
} Poor reward structures } Prior bad experience
} Fire fighting } Self-interest
} Waste of time } Fear of the unknown
} Too expensive } Honest difference of
} Laziness opinion
} Content with success } Suspicion
Thank you for
listening