SMP

1. a. Direct such SBEs to have their accounts re-audited or were such accounts have been published, to republish them or to include suitable corrections in its accounts for the following year. SMP PROCESS Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

2. Strategic Management SMP • Business management is a complex process. It requires skills, knowledge and experience. • Strategic management is a responsibility of the business management. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

3. SM as philosophy Strategic Management” has emphasized a warlike  philosophy. The term "strategic” comes primarily from the literature on war. From this perspective, • Business is a battle, • Competitors are the enemy, and • Government makes and enforces the rules. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

4. Why are some companies successful, while so many other businesses fail? • Luck • Having right mix of products and/or services at the right time. • Acquire, develop, and manage resources and capabilities that provide competitive advantages • Manage relationships with a wide range of organizations, groups, and people that have a stake in their firms. • (Stakeholders) Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

5. A Typical Stakeholder Map Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

6. Why Need Strategic Management? • Why do firms succeed or fail? • Why do firms have varying levels of performance? Strategic management finds solutions for above questions People use strategic management concepts and techniques to reach higher levels of performance.  Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

7. SM Vs Dynamic Environment • organizations of all types and sizes continually face changing situations. • Being able to cope effectively with these uncertainties in the external and internal environments and achieve expected levels of performance is a real challenge. • However, this is where strategic management comes in. • strategic decision makers examine all the important aspects in order to determine the most appropriate decisions and actions. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

8. Origin of Strategic Management • In the past, the topics of ·strategy and strategic management became major research thrusts in many business schools across the United States and elsewhere. • By the early 1970s,in the field of business policy and how they should respond to them. • Then, in May 1977, a major conference was held at the University of Pittsburgh.  Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

9. What is Strategic Management? Strategic management is a process through which organizations • analyze and learn from their internal and external environments, • establish strategic direction, • create strategies that are intended to move the organization in that direction, • and implement those strategies, all in an effort to satisfy key stakeholders. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

10. Strategic Management Process/Elements of strategic management Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

11. Strategic Thinking Strategic thinking involves the generation and application of unique business insights and opportunities intended to create competitive advantage for a firm or organization. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

12. Approaches of Strategic Management • Traditional Perspective • Resource – Based View • Stakeholder View Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

13. The Traditional Perspective Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

14. Concepts “Enactment ’’- Broad view Large firms (influencing firms) • This basically an argument that firms may choose their environments. • They may compete in a given environment. Or as an alternative, • they may attempt to influence the environment This process is called “Enactment”. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

15. Enactment-a firm can influence its environment •  Characteristics • They do not have to submit to existing forces in the environment.  • They can create their environments through strategic alliances with stakeholders, investments in leading technologies, advertising, political lobbying, and a variety of other activities. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

16. Smaller firms (non-influencing firms)  • limited in their ability to influence some components of their environments. Example: A small firm may have a difficult time influencing national government agencies and administrators. • Characteristics • band together into trade groups to influence government. •  form alliances  Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

17. 2)Environmental determinism • The environment is the primary determinant of the best strategy- This is called “Environmental Determinism”. • good management is associated with determining which strategy will best fit environmental, technical, and human forces at a particular point in time • Characteristics • Align the skills and other resources of the organization with the needs and demands of the environment can be a source of competitive advantage. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

18. 3)    Deliberate Strategy • Managers plan to pursue an intended strategic course. • In some cases, strategy simply emerges from a stream of decisions. • Managers learn as they go. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

19. 4)Emergent strategy  • An emergent strategy is one that was not planned or intended. • According to this perspective, managers learn what will work through a process of trial and error. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

20. Example-Honda Motorcycles • When Honda executives decided to market a small motorcycle, they had no idea it would be so successful. In fact, the prevailing wisdom was that small motorcycles would not sell very well. But Honda executives broke the rules and made the decision to market a small motorcycle. As sales expanded, they increased marketing, and ultimately captured two thirds of the American motorcycle market. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

21. 02.Resource Based Approach to Strategic Management "Why do some firms persistently outperform other firms?“ • Ability to develop distinctive competencies in particular areas • Capabilities of general management • Have "high quality" general managers • Effective leadership although leaders are an important source of competence for an organization, they are not t he only important resource that makes a difference. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

22. Having superior resources Example • farmer with the most-fertile land has a sustained performance advantage over other farmers.  • various skills and abilities possessed by firms can lead to superior performance. • coordinates the activities of numerous groups and individuals, and as a bundle of productive resources • a wide range of skills and resources can influence competitive performance. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

23. Resources and capabilities possessed by an organization • Financial Resources :all  of  the  monetary resources from which a firm can draw • Physical  Resources :plants, equipment, location s, and access to raw  materials • Human Resources :pertains to the skills, background, and  training  of  managers and  employees, as well  as  the  way  they  are organized • Organizational  Knowledge  and  Learning • General Organizational Resources :firm reputation, brand names, patents, contracts, and relationships with external stakeholders. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

24. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

25. The most important role of a manager becomes that of acquiring, developing, managing, and discarding resources. • Superior Resources • not easy to substitute.  • If a particular resource is also costly or impossible to imitate, then the competitive advantage may be sustainable. A sustainable competitive advantage may lead to higher-than­ average organizational performance over a long time period. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

26. Core Competency • A core competency is a concept in management theory originally advocated by two business authors, C. K. Prahalad and Gary Hamel. • It fulfills three key criteria: • It is not easy for competitors to imitate. • It can be reused widely for many products and markets. • It must contribute to the end consumer's experienced benefits and the value of the product or service to its customers. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

27. Examples of core competencies • Initiative and Creativity Plans work and carry out tasks without detailed instructions; makes constructive suggestions; prepares for problems or opportunities in advance; undertakes additional responsibilities; responds to situations as they arise with minimal supervision; creates novel solutions to problems; evaluates new technology as potential solutions to existing problems. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

28. Judgment • Makes sound decisions; • bases decisions on fact rather than emotion; • analyzes problems skillfully; • uses logic to reach solutions. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

29. Cooperation/Teamwork • Works harmoniously with others to get a job done; • responds positively to instructions and procedures; • able to work well with staff, co-workers, peers and managers; • shares critical information with everyone involved. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

30. Quality of Work • Maintains high standards despite pressing deadlines; • does work right the first time; • corrects own errors; • regularly produces accurate, thorough, professional work. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

31. Reliability • Personally responsible; • completes work in a timely, consistent manner; • works hours necessary to complete assigned work; • is regularly present and punctual; • arrives prepared for work; • is committed to doing the best job possible; • keeps commitments. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

32. Support of Diversity • Treats all people with respect; values diverse perspectives; participates in diversity training • Opportunities; provides a supportive work environment for the multicultural workforce; shows sensitivity to individual differences; treats others fairly without regard to race, sex, color, religion, or sexual orientation; recognizes differences as opportunities to learn and gain by working together; values and encourages unique skills and talents; seeks and considers diverse perspectives and ideas.  Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

33. Job Knowledge/Technical Knowledge • It demonstrates knowledge of techniques, skills, equipment, procedures and materials • Applies knowledge to identify issues and internal problems • works to develop additional technical knowledge and skills  Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

34. Communication • Writes and speaks effectively, using conventions proper to the situation; • states own opinions clearly and concisely; • demonstrates openness and honesty; • listens well during meetings and feedback sessions; • explains reasoning behind own opinions; • asks others for their opinions and feedback; • asks questions to ensure understanding; • exercises a professional approach with others using all appropriate tools of communication; • uses consideration and tact when offering opinions.  Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

35. Customer Service • Listens and responds effectively to customer questions; • resolves customer problems to the customer’s satisfaction; respects all internal and external customers; • uses a team approach when dealing with customers; • follows up to evaluate customer satisfaction; • measures customer satisfaction effectively; • commits to exceeding customer expectations. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

36. Problem Solving • Anticipates problems; • sees how a problem and its solution will affect other units; • gathers information before making decisions; • weighs alternatives against objectives and arrives at reasonable decisions; • adapts well to changing priorities, deadlines and directions; • works to eliminate all processes which do not add value; • willing to take action, even under pressure, criticism or tight deadlines; • takes informed risks; • recognizes and accurately evaluates the signs of a problem; • analyzes current procedures for possible improvements; • notifies supervisor of problems in a timely manner. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

37. Flexibility • Remains open-minded and changes opinions on the basis of new information; • performs a wide variety of tasks and changes focus quickly as demands change; • manages transitions from task to task effectively; • adapts to varying customer needs. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

38. Organization • Able to manage multiple projects; • able to determine project urgency in a practical way; • uses goals to guide actions; • creates detailed action plans; • organizes and schedules people and tasks effectively. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

39. Staff development • Works to improve the performance of oneself and others by pursuing opportunities for continuous learning/feedback; • constructively helps and coaches others in their professional development; • exhibits a “can-do” approach and inspires associates to excel; develops a team spirit. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

40. Innovation • Able to challenge conventional practices; • adapts established methods for new uses; • pursues ongoing system improvement; • creates novel solutions to problems; • evaluates new technology as potential solutions to existing problems. Chamara Bandara FCA, ACMA,MBA (USQ - AUS)