Domino's Pizza

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Strategic Leadership
Strategic Leadership involves
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Strategic Leadership and the Strategic Management
Process
Effective Strategic Leadership
shapes the formulation of
influence
Successful Strategic Actions
Formulation of Strategies
Implementation of Strategies
Strategic Competitiveness Above-Average Returns
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Factors Affecting Managerial Discretion
Managerial Discretion
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Exercise of Effective Strategic Leadership
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Determining Strategic Direction

• Strategic direction means the development of a
  long-term vision of a firms strategic intent
• A charismatic leader can help achieve strategic
  intent
• It is important not to lose sight of the
  strengths of the organization when making changes
  required by a new strategic direction
• Executives must structure the firm effectively to
  help achieve the vision

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Exploiting and Maintaining Core Competencies

• Core competencies are resources and capabilities
  that serve as a source of competitive advantage
  for a firm over its rivals
• Strategic leaders must verify that the firms
  competencies are emphasized in strategy
  implementation efforts

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Exploiting and Maintaining Core Competencies

• In many large firms, and certainly in
  related-diversified ones, core competencies are
  exploited effectively when they are developed and
  applied across different organizational units
• Core competencies cannot be developed or
  exploited effectively without developing the
  capabilities of human capital

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Developing Human Capital

• Human capital refers to the knowledge and skills
  of the firms entire workforce
• Employees are viewed as a capital resource that
  requires investment
• No strategy can be effective unless the firm is
  able to develop and retain good people to carry
  it out
• The effective development and management of the
  firms human capital may be the primary
  determinant of a firms ability to formulate and
  implement strategies successfully

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Sustaining an Effective Organizational Culture

• An organizational culture consists of a complex
  set of ideologies, symbols, and core values that
  is shared throughout the firm and influences the
  way it conducts business
• Shaping the firms culture is a central task of
  effective strategic leadership

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Sustaining an Effective Organizational Culture

• An appropriate organizational culture encourages
  the development of an entrepreneurial orientation
  among employees and an ability to change the
  culture as necessary
• Reengineering can facilitate this process

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Changing Culture and Reengineering
The benefits of business reengineering are
maximized when employees believe that

• Every job in the company is essential and
  important
• All employees must create value through their
  work
• Constant learning is a vital part of every
  persons job
• Teamwork is essential to implementation success
• Problems are solved only when teams accept the
  responsibility for the solution.

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Emphasizing Ethical Practices

• Ethical practices increase the effectiveness of
  strategy implementation processes
• Ethical companies encourage and enable people at
  all organizational levels to exercise ethical
  judgment

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Emphasizing Ethical Practices

• To properly influence employee judgment and
  behavior, ethical practices must shape the firms
  decision-making process and be an integral part
  of an organizations culture
• Leaders set the tone for creating an environment
  of mutual respect, honesty and ethical practices
  among employees

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Establishing Balanced Organizational Controls

• Organizational controls provide the parameters
  within which strategies are to be implemented and
  corrective actions taken
• Financial controls are often emphasized in large
  corporations and focus on short-term financial
  outcomes
• Strategic control focuses on the content of
  strategic actions, rather than their outcomes

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Establishing Balanced Organizational Controls

• Successful strategic leaders balance strategic
  control and financial control (they do not
  eliminate financial control) with the intent of
  achieving more positive long-term returns

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Why do a situation analysis?
Situation analysis concentrates on generating
solid answers to a well-defined set of strategic
questions and using these answers to

• Appraise the companys strategic situation and
  business position

• Craft a suitable strategy

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Situation analysis focuses on

• EXTERNAL FACTORS the firms MACRO-environment
  (industry and competitive conditions)

• INTERNAL FACTORS the firms immediate
  MICRO-environment (its own internal situation and
  competitive position)

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The Key Questions inCompany Situation Analysis

1. How well is the companys present strategy
   working?
2. What are the companys strengths, weaknesses,
   opportunities, and threats?
3. Are the companys prices and costs competitive?
4. How strong is the companys competitive position?
5. What strategic issues does the company face?

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SWOT Analysis

• SWOT represents the first letter in Strengths,
  Weaknesses, Opportunities, and Threats.
• SWOT analysis
• Involves sizing-up a companys INTERNAL strengths
  and weaknesses and its EXTERNAL opportunities and
  threats
• Is an easy to use tool for getting a quick
  overview of a companys strategic situation

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Why SWOT Analysis is Important

• It is the basis for matching strategy to the
  companys situation
• To its internal strengths and weaknesses
• To its external threats and opportunities

A winning strategy must always fit the companys
situation.
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Strengths

• What is a company Strength?
• Something a company is good at doing or a
  characteristic that gives it an important
  capability.

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Weaknesses

• What are company weaknesses?
• Something a company lacks or does poorly (in
  comparison to others) or a condition that puts it
  at a disadvantage.

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Opportunities

• What are company opportunities?
• Those that offer important avenues for profitable
  growth, those where a company has the most
  potential for competitive advantage, and those
  which the company has the financial resources to
  pursue.

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Threats

• What are company Threats?
• Certain factors in a companys external
  environment that pose a threat to its well-being.

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Some questions to consider once the SWOT listings
have been compiled are

• Does the company have internal strengths or core
  competencies an attractive strategy can be built
  around?
• Do company weaknesses make a company vulnerable
  and does it disqualify a company from pursuing
  industry opportunities?
• Which weaknesses does a company need to correct?

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Some questions to consider once the SWOT listings
have been compiled are

• Which opportunities does the company have the
  skills and resources to pursue with a real chance
  for success? Which opportunities are the best
  from the companys standpoint? (Remember
  Opportunity without the means to capture is only
  an illusion.)
• What external threats should management be
  worried most about and what strategic moves need
  to be made to craft a good defense?