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STRATEGIC LEADERSHIP IN A COMPETITIVE BUSINESS ENVIRONMENT

STRATEGIC LEADERSHIP IN A COMPETITIVE BUSINESS ENVIRONMENT. PRESENTER Prof. Elisante Ole Gabriel PhD – Strategic Mark., PhD – SERVQUAL, Mech. Eng, MSc-Intn Bus. Deputy Permanent Secretary - MIYCS +255-784-455-499 elisante_gabriel@yahoo.com www.olegabriel.com. CONTENT.

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STRATEGIC LEADERSHIP IN A COMPETITIVE BUSINESS ENVIRONMENT

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  1. STRATEGIC LEADERSHIP IN A COMPETITIVE BUSINESS ENVIRONMENT PRESENTER Prof. Elisante Ole Gabriel PhD – Strategic Mark., PhD – SERVQUAL, Mech. Eng, MSc-Intn Bus. Deputy Permanent Secretary - MIYCS +255-784-455-499 elisante_gabriel@yahoo.com www.olegabriel.com

  2. CONTENT • Analysing a Business Environment (Micro & Macro) • Creating & Sustainable Competitive Advantage • Competitive Strategies • Alternative Strategies for Market & Products Development • Strategic Thinking = Dreaming the future • Tips for Emerging Leaders (Challenge = Oppt) • CONCLUSION E. Ole Gabriel, 0784-455499

  3. BUSINESS ENVIRONMENT ANALYSIS SWOT/SAOC, PEST & SLEEPTIN

  4. SWOT ANALYSIS • This tool helps to identify the key internal factors (Strengths and Weaknesses) = SW • The External factors are Opportunities and Threats (OT) • This is modified: Instead of Weaknesses = Areas for Improvement and Threats = Challenges: Hence SAOC • Create, Sustain a Competitive Advantage

  5. Economic Sociocultural Environment Demographic General Industry Environment General Global Competitor Environment Environment Environment Political/Legal General Technological External and Internal Analyses By studying the external environment, firms identify what they might choose to do Opportunities and threats

  6. The Generic Components of External Environment (PEST) • Political • Economical • Social • Technological However, these was found to be limited in expressing the real macro environment

  7. New Dimension of Macro Environment (Gabriel, 2004) • From 4 components (PEST) to 8 (SLEEPTIN) • Social • Legal • Economical • Ethical • Political • Technological • International • Natural

  8. The Firm Internal Analysis By studying the internal environment, firms identify what they can do Unique resources, capabilities, and core competencies (sustainable competitive advantage)

  9. Challenge of Internal Analysis • How do we effectively manage current core competencies while simultaneously developing new ones? • How do we assemble bundles of resources, capabilities and core competencies to create value for customers? • How do we learn to change rapidly? • HINT: Many leaders fail to properly analyse the internal environment

  10. Discovering Core Competencies Strategic Competitiveness Value Chain Analysis Four Criteria of Sustainable Advantages Core Competencies Competitive Advantage Capabilities • Valuable • Rare • Costly to Imitate • Nonsubstitutable • Resources • Tangible • Intangible • Outsource Components ofInternal Analysis

  11. BUSINESS DIAGNOSIS(Porters’ Perspective) • There are two fundamental questions • WHAT MAKES AN INDUSTRY ATTRACTIVE? (PFFF, for Industry Analysis) • WHICH POSITION GIVES A FIRM SUPERIOR PERFORMANCE? (Generic Strategies)

  12. Industry Analysis Porter discusses the FIVE FORCES that determine the nature of competition in an industry :– • Threat of new entrants, • Bargaining power of customers, • Bargaining power of suppliers, • Threat of substitute products or services, • Rivalry among industry competitors.

  13. FIVE FORCES FRAMEWORK – for INDUSTRY ANALYSIS (By Michael Porter) Threat of New Entrants Rivalry Among Existing Competitors Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes

  14. Lessons from Industry Analysis • Industry analysis is the starting point of any strategy. • Business Leaders have to understand the structure of the industries that they are competing in. • Hint: The impact of the Competitive Forces varies from one market to another!

  15. GENERIC STRATEGIES • In pursuing competitive advantage, a company also has to choose its scope – • Whether it will target a particular segment or go for a broad market (e.g National Vs EAC Market). • These choices define four basic approaches to competitive advantage. • Which set of choices a company makes determines which “generic strategy” as Porter calls it, a company is following. • Avoid being STUCK-IN-THE MIDDLE

  16. GENERIC STRATEGIES (By M Porter) Broad Broad CostDifferentiation Focus Focus Cost Differentiation Strategic Target (Scope) Strategic Advantage

  17. STUCK-IN-THE MIDDLE • Failure to make a choice means that a company is stuck - in - the middle, with no advantage. • The result is poor performance. • Each Manager ought to be strategic on choosing the strategies • A Strategy which is suitable for one market might not be suitable for another. • Strategy shift from one strategy to another ought to be done timely! • You need to THINK STRATEGICALLY to avoid being stuck – in – Middle.

  18. Three major Types of Mind (I) GREAT MINDED PEOPLE (Make things happen) (II) AVERAGE MINDED PEOPLE (Watch Things Happening) (III) SIMPLE MINDED PEOPLE (Wonder Why Things are Happening?) Where do you belong? Your people with Helicopter? E. Ole Gabriel, 0784-455499

  19. Why Strategic Thinking for Emerging Leaders Changes in Market Structure of the Film Industry Limited Resources on sectoral needs Cultural Dynamics which can effect the decisions of customers in the Market Micro & Macro Factors Impact of Technology Changes in Behavior of customers in line with imports Changes on the Political dynamics & Regulations E. Ole Gabriel, 0784-455499

  20. Six Commandments of Strategic Leadership (By Gabriel E, 2002) 1. Create superior performance 2. Sustain superior performance 3. Understand your core functions (Your Value?) 4. Know your Competitor as you know yourself 5. Cope with the speed of Technology. AND 6. Make use of Feedback from your Internal and external customers for Synergy (1 + 1 > 2) HINT: Always be Visionary with a Dream like Dr. Martin Luther King Jnr. (1963 for USA) E. Ole Gabriel, 0784-455499

  21. Martin Luther King Jnr. (At the Age of 29yrs) I Have a Dream.. ..We shall be judged not by the color of our skin but the content of our character!

  22. I Have a Dream … Dr. Luther King Jnr(1963, USA) • …That one day, This Nation will raise up.., • Live out its true meaning of its freedom • We will all choose to be self evident, that all people are created EQUALLY…I have a dream..that • ..All of us will be able to sit on a table of brotherhood…I have a dream…that • My four little children will one day live in a Nation…where they will be judged not by the colour of their skin but by the content of their character…I HAVE A DREAM!

  23. I’ve been to the mountaintop..A day before assassinated) (By M. Luther King Jnr., At the Age of 39 Yrs in 1969) We've got some difficult days ahead. But it really doesn't matter with me now, because I've been to the mountaintop. And I don't mind.Like anybody, I would like to live a long life. Longtivity has its place. But I'm not concerned about that now. I just want to do God's will. And He's allowed me to go up to the mountain. And I've looked over. And I've seen the Promised Land. I may not get there with you. But I want you to know tonight, that we, as a people, will get to the promised land!And so I'm happy, tonight.I'm not worried about anything.I'm not fearing any man!Mine eyes have seen the glory of the coming of the Lord!!

  24. The Dream of Elisante Ole Gabriel for Tanzania & Africa (2012) • …. I have a dream that One day Tanzania will be the richest Country in the African Continent • …… Africa will also be the most powerful continent economically on the planet Earth • …. Africans need to develop the following for its Youth: Moral Capital, Innovativeness, Homogeneities and Perseverance (MIHoP)…!

  25. TIPS FORBUSINESS LEADERS in Africa • The Success of Business depends on Innovative mind • Manage Competition Strategically • There is no room for losers but winners in the competitive Business Environment • Entrepreneurship Spirit not just skills should be the driving force. • Convert Threats to Opportunities ( Successful life even without Limbs (A Case of Nick, UK) E. Ole Gabriel, 0784-455499

  26. CONCLUSION • It is the right strategy which can take you to the right Business position. • The Competitive Forces ought to be properly addressed. AND • Make sure you always offer Value to your Market and not just products! • THANK YOU!!! +255784-455499 E. Ole Gabriel, 0784-455499

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