INTRODUCTION TO STRATEGIC PLANNING AND STRATEGIC MANAGEMENT __________

1. INTRODUCTION TO STRATEGIC PLANNING AND STRATEGIC MANAGEMENT __________ Muhammad Nazim bin Abd. Rahman Leadership and Executive Development Cluster INTAN Bukit Kiara Updated 2018

2. Lecture Content: Intro. to Strategic Planning & Strategic Management • Whatis ‘Strategy?’ • Five ‘P’s of Strategy • Types of Strategy: Hierarchical; Miscellaneous; and Mintzberg & Waters • Definitions of Strategic Management • WhyisStrategic Management so Important? • Four Elements / Phases in Strategic Management Process • Link betweenStrategicThinking, Strategic Planning and Strategic Management • Q & A Session • RecommendedReadings

3. Strategic Management WhatisStrategy? Almost everyday we hear the word ‘strategy’ being used. One comes to wonder… what is ‘strategy’ exactly?

4. Strategic Management WhatisStrategy? Strategy =

5. Strategic Management Five ‘P’s for Strategy Five ‘P’s for Strategy by Henry Mintzberg

6. Strategic Management Some Interesting Quotes on Strategy 1. “Strategy is when you are out of ammunition, but keep on firing so that the enemy won’t know” (Unknown) 2. “Strategies are the means by which long-term objectives will be achieved ” (Fred David, 2007) 3. “Strategy is essentially, a way of channeling resources to achieve a goal” (Nigel Nicholson, 2004)

7. Strategic Management Types of Strategy (HierarchicalCategory)

8. Strategic Management Types of Strategy [1]

9. ‘ASEAN’ strategy on widening cooperation to become ‘ASEAN + 3’

10. Strategic Management Types of Strategy [2]

11. Strategic Management SHARED VALUES The Malaysian National Strategy Previously MAIN PILLARS Prime Minister and Chief Secretary have introduce this framework since 2010 until 2018: 1. 1Malaysia: People first, Performance Now 2. Government Transformation Programme (GTP) 3. New Economic Model (NEM) 4. The 11th Malaysia Plan • C.T.I. • P.C.I. • 8 Principles of Innovative Workers • 6 Principles of Citizen-centric Public Service Towards Vision 2020 TN 50 5. Economic Transformation Programme (ETP)

12. Strategic Management SHARED VALUES The Malaysian National Strategy Developing MAIN PILLARS Prime Minister and Chief Secretary are developing new since the results of latest General Election in : • The 11th Malaysia Plan • (Guidelines highlighted in the Winning Ruling) Coalition Manifesto • ………………………………. • ……………………. • ……………………. • ……………………. Towards Vision 2020

13. Strategic Management Types of Strategy [3]

14. Strategic Management Types of Strategy [4]

15. Strategic Management Types of Strategy [5] After the general election to 14 (PRU-14), the entire component of the Ministry of Science, Technology and Innovation (MOSTI), Green Technology and Energy Components from the Ministry of Energy, Green Technology and Water (KeTTHA) and related components of Climate Change and Environment from the Ministry of Natural resources and Environment (NRE) has been restructured and formed the Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC)

16. Strategic Management Types of Strategy [6]

17. Strategic Management Types of Strategy [Miscellaneous]

18. Strategic Management Mintzberg & Waters (1985) Categorization of Strategy Mintzberg & Waters (1985) taken from MINTZBERG, H., AND WATERS, J. 1985. “Of strategies, deliberate and emergent.” Strategic Management Journal 6, 3, 257-272.

19. Strategic Management A Classic Example of Emergent Strategy A classic example of embracing emergent strategywhen the situation or circumstances have changed could be seen in the “Honda Success Story”

20. Strategic Management Definitions of Strategic Management “Strategic Management is the process by which an organisation manages the formulation and implementation of its strategy” Mason Carpenter & William Sanders (2006) “Strategic Management consist of analysis, decisions and actions an organisation undertakes in order to create and sustain competitive advantages” Gregory Dess, Tom Lumpkin & Alan Eisner (2008)

21. Strategic Management “Strategic Management is the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organisation to achieve its objectives” Fred R. David (2007) “Without a strategy, an organisation is like a ship without a rudder, going around in circles ” Joel Ross and Michael Kami (1973)

22. Strategic Management Definitions of Strategic Management

23. Strategic Management Why is Strategic Management so important? Benefits of Strategic Management Strategic Management  1. Sets direction and focuses effort; 2. Ensures a more concerted and coordinated effort; 3. Ensures better and faster decision making; 4. Shortens the learning curve period; 5. Increases stakeholders confidence; 6. Reduces wastage; 7. Ensure limited resources are put to good use; 8. Help organisations achieve their intended goals and uncover opportunities along the way;

24. Why is Strategic Management so important? 9. Ensures organisational survival; 10. Measures organisation’s performance so that the necessary corrective and preventive actions and continuous improvement efforts could be made; 11. Helps shape the desired future; 12. Encourages better participation; 13. Encourages the process of ‘kaizen’ or continuous improvement 14. Helps achieve and maintain competitive advantage (Best illustrated by the story of “Two CEO and the Bear.”)

25. Strategic Management The Story of “Two CEO and The Bear” CEO ‘A’ CEO ‘B’ + THE BEAR

26. Strategic Management “Two CEO and the Bear” (1) Once there were two CEOs of two companies which competed in the same automotive industry These two CEOs decided to go on a camping trip to discuss a possible merger. They hiked deep into the woods and stumble into a cave. It was already late in the evening so they decided to have a rest and set up their tent in the cave As they came nearer to the cave they hear a deep growl and saw a big grizzly bear. The bear growl and rose on its hind legs at the mouth of the cave

27. Strategic Management “Two CEO and the Bear” (2) Instantly, CEO ‘A’ took off his knapsack and got out a pair of jogging shoes. So CEO ‘B’ said, “Hey! You can’t outrun that bear. He is fast and furious!” CEO ‘A’ responded, “Maybe I can’t outrun that bear, but I could surely outrun you!”

28. Strategic Management The Four (4) Elements/Phases in Strategic Management Process

29. Strategic Management Link between Strategic Thinking, Strategic Planning & Strategic Management (1) Strategic Thinking is a thinking skill in ‘seeing’ issues, problems and opportunities in a larger and broader perspective and being able to understand the inter-relation of all the elements involved so that the best course of action could be formulated to achieve the desired goals

30. Strategic Management Link between Strategic Thinking, Strategic Planning& Strategic Management (2) Strategic Planning is the combination of strategic analysis and strategy formulation

31. Strategic Management Link between Strategic Thinking, Strategic Planning &Strategic Management (3) Strategic Management is the process of analyzing, formulating, implementing and evaluating various strategies in order to achieve organisation’s goals

32. Strategic Management Q&A Session Are there any questions or concepts that need clarification? If not, we hope that the knowledge covered in this session is highly beneficial to all… Thank You

33. Recommended Reading & Viewing for the Topics of Strategic Thinking & Strategic Management 1. All recently published Strategic Management text book 2. Sun Tzu – “The Art of War” 3. Website: www.mindtools.com 4. Mintzberg, Ahlstrand & Lampel (2005) – “Strategy Bites Back” 5. Mintzberg, Ahlstrand & Lampel (1998) – “Strategy Safari” 6. Van Assen, Van den Berg & Pietersma (2009) – “Key Management Models” (2nd Edition)