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There is an island of opportunity

in the middle of every difficulty.

Albert Einstein









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Leadership, Strategy and
Competitive Advantage

Dr. Jashim U. Ahmed


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Strategy

A clear vision of what the
organization will be; based on a
sustainable competitive
advantage; specifying what must
be done and the resources
required.




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Strategy is War!

companies do compete
aggressively - even viciously -
for strategic advantage in a
chaotic arena that is increasingly
similar to the modern theater of
war.

Source: E. K. Clemons & J. A. Santamaria,
April 2002, Harvard Business Review
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Strategy Should Include
A Clear understanding of the
Companys Competitive Advantage
Specific Objectives - Growth and
Profits
Products and Services
Markets and Customers
Priority areas of Business
Investment, Organization,
Resources and Skills required
Implementation Plan











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The Five Elements of Strategy
Staging
What will be our speed
and sequence of moves?
Vehicles
How we will get there?

Economic Logic
How will we obtain
our returns?
Arenas
Where will we be active?
Differentiators
How will we win?
Source: D. C. Hambrick & J . W. Fredrickson, 2001
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The Benefits of Strategy
Clarity of Direction
Rationale for Future Success
Basis for Resource Allocation
Decisions
Basis for Operational Decisions
Identifies Critical Issues
Communication Improved
Common Purpose Amongst
Management









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Strategic Management
Something an organization needs or
uses in order to win, or establish its
legitimacy in a world of competitive
rivalry strategy is what makes a
firm unique, a winner, or a survivor.

Howard Thomas, 1993







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Levels of Strategy
HQ
Corporate Office
Business Unit
Power Plant
Corporate Strategy
- where to invest
- adding value by linking units
Business Unit
Hospital
Business Unit
Real Estates
Functional strategies
Business Strategy
- what we sell to whom
- competitive advantage
Sales &
Marketing
Distribution Service
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When Do You Need a Strategic
Review
External Changes
Competitive Changes
Environmental Changes

Internal Changes
New Ownership
New Technology
New Management Team
Poor Results
Differences in Opinion


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Vision
Vision is simply an inner picture of
something, which has not yet
happened. The vision set by leading
companies on Europe and US
requires the transformational style
adopted so successfully in much
admired companies like Shell,
GlaxoSmithKline and Cisco
Systems. Each began with an idea.
A clear vision.

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Vision & Mission
Vision is a possible and
desirable future state of an
organization. Mission is why a
firm exists, its role in life. It is
more associated with behavior
and the present.

---A. Campbell and S. Yeung, 1991
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Vision & Competitive Strategy
For commercial companies the
vision statement needs to
define a definite competitive
strategy and the key activities
to be invested in to provide
competitive advantage.
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Compelling Vision Requires Three Components
Sensitivity to the External Environment
(important because every organization needs to
adapt continuously to its situation).

Formulating a Compelling Vision
(important because this provides a clear strategy
for leadership).

Persuasively communicating the Vision
(important because all employees need to be
enrolled in fulfilling the compelling vision).









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Vision
Vision is where tomorrow begins, for
it expresses what you and others who
shares the vision will be working hard
to create. Since most people dont
take the time to think systematically
about the future, those who do - and
who base their strategies and actions
on their visions - have inordinate
power to shape the future.
Burt Nanus
Visionary Leadership









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The Four Parameters of Mission
Purpose
Values
Strategy
Behavior Standards
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Components of A Mission
Statement

Mission statements can and do vary in
length, content, format, and specificity.
Most practitioners and academicians of
strategic management feel that an
effective statement exhibits nine
components. Because a mission
statement is often the most visible and
public part of the strategic management
process.


F. R. David, 2003.
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Nine Components of A Mission
Statement
Customers: Who are the firm's customers?
Products or Services: What are the firms
major products or services?
Markets: Geographically, where does the
firm compete?
Technology: Is the firm technologically
current?
Concern for Survival, Growth and
Profitability: Is the firm committed to
growth and financial soundness?




F. R. David, 2003.
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Nine Components of A Mission
Statement (cont.)
Philosophy: What are the basic beliefs,
values, and ethical priorities of the firm?
Self-concept: What is the firm's major
competitive advantage?
Concern for Public Image: Is the firm
responsive to social, community, and
environmental concerns?
Concern for Employees: Are employees
a valuable asset of the firm?

F. R. David, 2003.
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Long-term Growth in
Shareholder Value
A Mission-Driven Company
A Values-Centered Organization
An Adaptable Business Strategy


W. W. George,
Academy of Management Executive, 2001,
Vol. 15, No. 4, p. 41.
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Why is Vision so Powerful?
The key reason is that it grabs
attention. It provides focus. Every
organization has lots of ways to go.
The outside world pulls it in every
direction. Each has its own
attractions. Yet, no organization can
be all things to all people - not
General Motors, not IBM, not even the
United States of America.

Burt Nanus









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Issues for Strategic Management
Where Are We Now?
S.W.O.T analysis
Where Do We Want to Be?
Vision Mission - Goals - Objectives.
What is Stopping Us?
Organizational blockages.
What Should We Do?
Strategic action.









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Strategic Thinking Viewpoints
Satisfying Customer Needs:

Customer Segments.
Customer Perceptions.
Unmet Customer needs.
Future Customer Needs.









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Strategic Thinking Viewpoints
Sustaining the Competitive
Advantage:

Competitive Interaction.
Competitors Gaps.
Cost versus Value.
Competitors Reaction.









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Offensive Strategies
Attack Competitors Strengths.
Attack Competitors Weaknesses.
Attack on Many Fronts
Simultaneously.
First-Mover Initiatives.
Guerrilla Attacks.
Pre-Emptive Strikes.









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Strategy Generation Methods
Redefine Product & Market Scope
Seek Opinions of External Experts
Imitate Competitors
Create Variations on an existing theme.
Differentiate using Competitive Advantage.
Become Lowest cost operator
Focus activities
Change your size
Give best Quality
Use Different types of Portfolio Analysis.
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Strategic Growth Based On
New Levels of
Services/Product/Distribution
New Technologies
New Applications
Product Performance
Differentiation
Innovation
Distinctive Skills or Resources









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Selections of Strategies
Must be Imaginative, Practical & Relevant.
High Chance of Achieving Adequate
Results.
Does not Create Excessive Risk.
Uses Organization's Major Strengths.
Corrects or Neutralizes major Weaknesses.
Exploits Major Opportunities
Eliminate or Reduces Major Threats.

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Final Thought
Achieving maximum possible
Differentiation over the
Competition in Meeting Customer
Needs.

Source: K. Ohmae
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Thank you