• Enron, WorldCom, Parmalat • Jack Welch’s retirement package. War[r]
Trang 1Current Trends in Strategic Management
• The New Economy
• New Directions in Strategic Thinking
• Redesigning the Organization
• New Modes of Leadership
OUTLIN
E
Trang 2The Turbulent 21st Century
Collapse of New
Economy
•Dot.com bubble bursts
•TMT recession
Collapse of New
Economy
•Dot.com bubble bursts
•TMT recession
Corporate Scandals
• Enron, WorldCom, Parmalat
• Jack Welch’s retirement package
Corporate Scandals
• Enron, WorldCom, Parmalat
• Jack Welch’s retirement package
War
• Invasion of Afghanistan
& Iraq
•Civil was in Congo,
Liberia, Sudan
War
• Invasion of Afghanistan
& Iraq
•Civil was in Congo, Liberia, Sudan
Age of Disbelief
Age of Disbelief
The Curse of
Terrorism
• Sept 11, 2001
•Suicide bombings in
Israel, Iraq, Saudi
Arabia, Turkey,
Afghanistan
The Curse of
Terrorism
• Sept 11, 2001
•Suicide bombings in
Israel, Iraq, Saudi
Arabia, Turkey,
•SARS, Mad Cow, Bird
Flu
Fear of Disease
•SARS, Mad Cow, Bird
Flu
Unstable Currencies
US$ declines by >50% against
Euro 2002-04
Unstable Currencies US$ declines by >50% against
Euro 2002-04
Decline of Multilateralism
•Collapse of Doha round
• Trade wars between US, EU, China
•Weakening of UN
International competition intensifies
• China as Workshop of the World
• Outsourcing to LDCs
Trang 31
2
3
4
5
6
7
1995 1996 1997 1998 1999 2000 2001 2002 2003
Q1 Q2 Q3 Q4
Source: Bureau of Labor Statistics
US Labor Productivity: Changes in Non-Farm Output per Hour Worked from Year ago Quarter, 1995-2003
US Labor Productivity: Changes in Non-Farm Output per Hour Worked from Year ago Quarter, 1995-2003
Trang 4Return on Equity of US Manufacturing
Corporations, 1990-2003
Return on Equity of US Manufacturing
Corporations, 1990-2003
0
2
4
6
8
10
12
14
16
18
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
ROE ( %)
Source: US Bureau of the Census
Trang 50.5
1
1.5
2
2.5
3
3.5
4
4.5
1990 1992 1994 1996 1998 2000 2002
$ trillion
The value of mergers and
acquisitions worldwide
The value of mergers and
acquisitions worldwide
Source: Thomson Financial Securities Data
Trang 6Key Trends of the 1990s:
•Quest for shareholder value
•Adjusting to increased
turbulence & more intense
competition
Influential Strategy Concepts:
•Modern financial analysis
—shareholder value, economic profit,
option theory
•Core competences and intangible
assets
•Dynamically competitive markets
—“hypercompetition”
•Competitive advantage through
alliances, networks, and standards
Major Themes of Business Strategy:
•Cost cutting—squeezing
overhead, business process engineering, increasing labor productivity
•Outsourcing/refocusing/
divestment
•Performance management and
incentive alignment
Directions in Strategic Management Practice—Trends of the 1990s
Directions in Strategic Management Practice—Trends of the 1990s
Trang 7Future Sources of Profit
Limits of downsizing/cost cutting
Where are future sources of
profit?
Technology
Continued advances in ICT
Forces Shaping Company Strategies 2001-04
Concepts & Theories
•Resources & capabilities as
basis for competitive advantage
•Knowledge-based theory
of the firm
•Option theory
•Complexity theory
The Business Environment
•Uncertainty
•Stalling of economic
liberalization
•Intense competition
Demands of society
•Social & environmental responsibility
•Ethics & fairness
•Quest for meaning