asp_conf_2007-brady#sustainablemanagement.ppt

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Sustainable Management

How to identify a sustainable strategy in a globalized world:

Sustainable Management Dr. Mary Anne R. Brady [email protected]

An argument for keeping the political/economic environment in the analysis.

mailto:[email protected]

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Comprehensive Strategic Management Model

• Actual strategy results from planned strategy coupled with reactive changes.

• Companies that shift their portfolios to align them with favorable trends are much more likely to achieve strong growth and profits. (McKinsey research report, September 2006)

• Alignment consist of a match between the external environment and the internal environment.



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SWOT/TOWS Analaysis

Evaluation of Value Chain

Strategic Management Model

Develop Vision & Mission Statements

Establish Long Term Objectives

Generate, Evaluate, and Select Strategies

Implement Strategies (Control

and Evaluate)

Measure Performance

Refine Solution

Perform Internal Audit

Perform External Audit

Iterative Process



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Perform External

Audit

External Analysis

1.Industry Environment

2.Societal Environment



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Perform External

Audit

External Analysis

1. Industry Environment• Shareholders• Suppliers• Employees/Labor Unions• Competitors• Trade Associations• Communities• Creditors• Special Interest Groups• Governments



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Perform External

Audit

External Analysis

•Industry Environment•Shareholders•Suppliers•Employees/Labor Unions•Competitors•Trade Associations•Communities•Creditors•Special Interest Groups•Governments

Corporate

Analysis Vs.

Business Unit

Analysis



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Perform External

Audit

External Analysis

•Industry Environment•Shareholders•Suppliers•Employees/Labor Unions•Competitors•Trade Associations•Communities•Creditors•Special Interest Groups•Governments

May be Unique

for Each Country or

Geographical

Region



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Perform External

Audit

External Analysis

1.Industry Environment

2.Societal Environment


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Perform External

Audit External Analysis

2. Societal Environment• Political• Economic• Legal• Sociocultural• Technological



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Perform External

Audit

External Analysis2. Societal Environment

Political•Legal•Economic•Sociocultural•Technological

•Stability of Office Holders•Government Subsidies and Investments

Education (labor pool)Infrastructure

•Protectionist Vs. Outsourcing•Terrorist Activity•Political Action Committees



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Elected Officials are the instigators of Economic Policy for the Nation, City or Geographical Region.



Their Charter is to:•Sustain economic advantage by deploying resources (e.g., education)•Provide infrastructure (e.g., transportation, utilities, waste management)•Identify tax base (e.g., exemptions)•Initiate financial approval of projects


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Perform External

Audit

External Analysis

2. Societal Environment•Political

•Economic•Legal•Sociocultural•Technological

Impact my be defined

by• National Politics

• Regional Politics

• City PoliticsSustainable Management Dr. Mary Anne R. Brady [email protected]


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Perform External

Audit


Economic •Legal•Sociocultural•Technological

•GDP/GNP•Trade Agreements•Stock Market Volatility•Deficit•Inflation/Recession•Interest Rates•Employment Levels•Currency Exchange Rates•Regulatory Environment



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Perform External

Audit



Forecasting Model:

• Basic assumption is that past trends continue into the future.

• Reliability is limited to what can be inferred from known facts.


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Perform External

Audit



• Modeling the world involves uncertainties about data and causal processes.

• Uncertainties are not necessarily fatal as they are not intended to PREDICT precise events- just broad patterns of behavior.


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Perform External

Audit



• Forecasts can be self-fulfilling or self-defeating

• Attempts to forecast the future inevitably alters it (Future Shock, Toffler, 1970)


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Perform External

Audit



• Discarding unstructured information can place a business at a distinct disadvantage.

• Subtle changes can go undetected until they accumulate into catastrophic change and render the business obsolete.


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Perform External

Audit


•Economic•Legal•Sociocultural•TechnologicalThe more we can understand the way the world is changing—the greater the chance we have of securing the future.


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SWOT/TOWS Analaysis




Establish Long Term Objectives

Generate, Evaluate, and Select Strategies

Implement Strategies (Control

and Evaluate)

Measure Performance

Refine Solution


Perform External Audit

Iterative Process


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SWOT/TOWS – Using data from Internal and External Analysis- Brainstorm Sessions

Match external opportunities (O) and threats (T) facing enterprise and match with internal strengths (S) and weaknesses (W).

Forces managers to create various growth (retrenchment) strategies.

Efforts help to clarify goals, identify key variables in change, force more careful evaluation of alternatives.

Iterative process



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Opportunities (O)

* Expand plant facilities/capacity1

* Reduce manufacturing cost2

* Economic development in Southeast Asia3

* Availability of labor4

Strengths (S)*Experienced top management & staff9* Low turnover10

* Loyal customer base11

* Low training cost12

* Familial culture13

Weaknesses (W)

* Production capacity reached14

* Unable to expand plant15

* Global positioning16

* Distribution channels17

External Factors

Threats (T)

* Increasing government regulation5

* “Green” pressure group6

* Political instability7

* Terrorist threats8

Internal Factors

ST Strategies

* Expand management’s participation in establishing favorable government regulations (9,5,6)

* Emphasize culture’s focus on “Green” practices (6,13,9)

WT Strategies

* Utilize distribution channels that include RFID (17, 8, 5)

* Employ ‘green’ manufacturing in plant expansion in Southeast Asia (6, 15,1)

SO Strategies

* Explore current customer base for new opportunities in southeast Asia (11,3)

* Find joint venture partners in Southeast Asia (9,3)

* Use current staff to train new labor(9,4)

WO Strategies

* Expand plant facilities close to distribution points (17,14,1)

* Increase production & expand plant in Southeast Asia (14,1,3)

* Use new labor to increase production (14, 4)


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Dr. Mary Anne R. Brady, Management Consultant909 Marina Village Pkwy #247, Alameda, CA 94501

Dr. Brady has over 20 years of experience providing organizational consulting to various industries in the United States and Asia. Most recently she established a consulting firm in Thailand to provide guidance for organizations to synchronize their strategic direction with their technology policies and applications. She has led projects with General Electric, AT&T, Wells Fargo, Clorox, Visa and numerous other organizations, both large and small. The goal of Dr. Brady’s consulting practice has been to match strategic initiatives with business initiatives while improving the overall business processes. She brings project management skills from a varied background in private companies, public agencies and academia. In addition to working as a management consultant, Dr. Brady has also taught at the graduate level for universities in the U.S., Vietnam, China, and Thailand.



asp_conf_2007-brady#sustainablemanagement.ppt

Business

mary anne

external environment

sustainable strategy

internal environment

waste management

economic advantage

instigators of economic

future shock