Expert answer:1 partAfter reading the chapter, answer the following questions. Again, please start a new post for your answers instead of replying to others. Please answer the questions directly in your post and do not upload files.1. Choose a CEO of a prominent firm that you believe exemplifies the positive aspects of strategic leadership. What actions does this CEO take that demonstrate effective strategic leadership? What are the effects of those actions on the firm’s performance?2. Select a CEO of a prominent firm that you believe does not exemplify the positive aspects of strategic leadership. What actions did this CEO take that are inconsistent with effective strategic leadership? How have those ineffective actions affected the firm’s performance?3. Select an organization that has a unique organizational culture. What characteristics of that culture make it unique? Has the culture had a significant effect on the organization’s performance? If so, what is that effect?For this part just answer this 3 question each one need 350 word or more.2 part Read the case “Should Sustainability Have a Seat in the C-Suite?”Preview the documentView in a new window (click the link) and answer the following questions.1) What do you understand by the term “sustainability”?2) Should a business consider sustainability as part of its overall strategy or should it be treated simply as an environmental, a compliance with legal regulations, or a public relations matter? Please explain why or why not.3) How would you integrate and implement a sustainability initiative as part of the overall strategy?4) Should Narinex hire a CSO? If “Yes” should it be a full time position at the top management level or should it be the CEO’s responsibility? If “No” why not?Include your answers in a single Word document and upload
ch12.pptx
should_sustainability_have_a_seat_in_the_c.pdf
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Chapter 12
Strategic Leadership
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Strategic Leadership and Style
• Strategic leadership requires the ability to:
– anticipate and envision.
– maintain flexibility.
– empower others to create strategic change through
selecting and implementing a firm’s strategies as
necessary.
• Strategic leadership is:
– multi-functional work involving working through others.
– consideration of the entire enterprise rather than just a
sub-unit.
– a managerial frame of reference.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–2
Strategic Leadership (cont’d)
• Effective strategic leaders:
– manage the firm’s operations effectively.
– sustain a high performance over time.
– make better decisions than their competitors.
– make candid, courageous, pragmatic decisions.
– understand how their decisions affect the internal
systems in use by the firm.
– solicit feedback from peers, superiors and employees
about their decisions and visions.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–3
The Role of Top-Level Managers
• Managers often use their discretion when
making strategic decisions and implementing
strategies.
• Factors affecting the amount of decision-making
discretion
– External environmental sources
– Characteristics of the organization
– Characteristics of the manager
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–4
Factors Affecting Managerial Discretion
External
Environment
• Industry structure
• Rate of market growth
• Number and type of
competitors
• Nature and degree of
political/legal constraints
• Degree to which products can
be differentiated
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–5
Factors Affecting Managerial Discretion
External
Environment
Characteristics
of the Organization
•
•
•
•
•
Size
Age
Culture
Availability of resources
Patterns of interaction among
employees
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–6
Factors Affecting Managerial Discretion
External
Environment
Characteristics
of the Organization
Characteristics
of the Organization
• Tolerance for ambiguity
• Commitment to the firm and its
desired strategic outcomes
• Interpersonal skills
• Aspiration level
• Degree of self-confidence
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–7
Factors Affecting Managerial Discretion
External
Environment
Characteristics
of the Organization
Characteristics
of the Organization
Managerial
Discretion
• The degree of latitude for action
when making strategic decisions,
especially those concerned with
effective implementation of
strategies.
• How managers exercise
discretion when determining
appropriate strategic actions is
critical to the firm’s success.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–8
Factors Affecting Managerial Discretion
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–9
Top Management Teams
• Composed of the key managers who are
responsible for selecting and implementing the
firm’s strategies.
• A heterogeneous top management team:
–
–
–
–
has varied expertise and knowledge.
can draw on multiple perspectives.
will evaluate alternative strategies.
builds consensus.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–10
Top Management Teams, Firm Performance,
and Strategic Change
• Heterogeneous top management teams:
– have difficulty functioning effectively as a team.
– require effective management of the team to
facilitate the process of decision making, but …
– are associated positively with innovation and
strategic change.
– may force the team or members to “think outside
of the box” and be more creative.
– have greater capacity to provide effective
strategic leadership in formulating strategy.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–11
CEO and Top Management Team Power
• Higher performance is achieved when board of
directors are more directly involved in shaping
strategic direction.
• A powerful CEO may:
–
–
–
–
appoint sympathetic outside board members.
have inside board members who report to the CEO.
have significant control over the board’s actions.
may also hold the position of chairman of the board
(CEO duality).
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–12
CEO and Top Management Power
• Duality often relates to poor performance and
slow response to change.
– CEOs of long tenure can also wield substantial power.
– CEOs can gain so much power that they are virtually
independent of oversight by the board of directors.
• The most effective forms of governance share
power and influence among the CEO and board
of directors.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–13
Managerial Succession
• Organizations select managers and strategic
leaders from two types of managerial labor
markets
– Internal managerial labor market
• Advancement opportunities related to managerial
positions within a firm.
– External managerial labor market
• Career opportunities for managers in organizations
other than the one for which they currently work.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–14
Managerial Labor Markets
• Advantages of internal managerial labor market
include:
– experience with the firm and industry environment.
– familiarity with company products, markets,
technologies, and operating procedures.
– lower turnover among existing personnel.
• Advantages of the external managerial labor
market include:
– long-tenured insiders may be “stale in the saddle”—
outsiders may bring fresh perspectives.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–15
Effects of CEO Succession and Top
Management Team Composition on Strategy
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–16
Exercise of Effective Strategic Leadership
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–17
Key Strategic Leadership Actions:
Determining Strategic Direction
• Determining strategic direction involves
developing a long-term vision of the firm’s
strategic intent.
– Five to ten years into the future
– Philosophy with goals
– The image and character the firm seeks
• Ideal long-term vision has two parts
– Core ideology
– Envisioned future
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–18
Effectively Managing the Resource Portfolio:
Exploiting and Maintaining Core Competencies
• Core competencies
– Resources and capabilities of a firm that serve as a
source of competitive advantage over its rivals.
– Leadership must verify that the firm’s competencies
are emphasized in strategy implementation efforts.
– Firms must continuously develop or even change
their core competencies to stay ahead of competitors.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–19
Effectively Managing the Resource Portfolio:
Developing Human Capital and Social Capital
• Human capital
– The knowledge and skills of the firm’s entire
workforce are a capital resource that requires
investment in training and development.
• Social capital
– Relationships inside and outside the firm that help it
accomplish tasks and create value for customers and
shareholders.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–20
Sustaining an Effective
Organizational Culture
• Organizational Culture
– The complex set of ideologies, symbols and core
values shared through the firm, that influences the
way business is conducted.
• Entrepreneurial Mind-set (Orientation)
– Personal characteristics that encourage or discourage
entrepreneurial opportunities.
•
•
•
•
Autonomy
Proactiveness
Innovativeness
Risk taking
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–21
Sustaining an Effective
Organizational Culture (cont’d)
• Changing a firm’s organizational culture is more
difficult than maintaining it.
– Effective strategic leaders recognize when change in
culture is needed.
• Shaping and reinforcing culture requires:
–
–
–
–
–
effective communication
problem solving skills
selection of the right people
effective performance appraisals
appropriate reward systems
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–22
Emphasizing Ethical Practices
• Effectiveness of processes used to implement
the firm’s strategies increases when based on
ethical practices.
• Ethical practices create social capital and
goodwill for the firm.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–23
Emphasizing Ethical Practices (cont’d)
• Actions that develop an ethical organizational
culture include:
– establishing and communicating specific goals to
describe the firm’s ethical standards.
– continuously revising and updating the code of
conduct.
– disseminating the code of conduct to all stakeholders
to inform them of the firm’s ethical standards and
practices.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–24
Emphasizing Ethical Practices (cont’d)
• Actions that develop an ethical organizational
culture include:
– developing and implementing methods and
procedures to use in achieving the firm’s ethical
standards.
– creating and using explicit reward systems that
recognize acts of courage.
– creating a work environment in which all people are
treated with dignity.
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–25
Establishing Balanced
Organizational Controls
• Controls
– Formal, information-based procedures used by
managers to maintain or alter patterns in
organizational activities.
• Controls help strategic leaders to:
– build credibility
– demonstrate the value of strategies to the firm’s
stakeholders
– promote and support strategic change
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–26
Establishing Balanced
Organizational Controls (cont’d)
• The Balanced Scorecard
– A framework used to verify that the firm has
established both strategic and financial controls to
assess its performance.
– Prevents overemphasis of financial controls at the
expense of strategic controls
• Four perspectives of the balanced scorecard
–
–
–
–
Financial
Internal business processes
Learning and growth
Customer
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–27
Establishing Balanced
Organizational Controls (cont’d)
© 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12–28
Should Sustainability Have a Seat in the
C-Suite?
by Eric J. McNulty and Rupert Davis
Jennifer Brown, CEO of Narinex, an electronic components manufacturer based in Michigan, re-read the
news alert on her screen. The company had lost another major contract to Glistrom, a UK-based competitor
it had regularly beaten. She called out to her secretary. “Sally, I need Herb Tyler and Laura Dyson right
away.”
Losses like these were not just the normal ebb and flow of deal making, and Brown wanted input from her
COO, Tyler, and her CFO, Dyson. She was determined to keep Narinex on top.
With $3.2 billion dollars in revenue and operations in North America, Europe, and Asia, Narinex had
performed consistently well with Brown at the helm. A favorite of Wall Street analysts, it had kept costs
low even as it expanded into new lines and markets, and Brown was now regarded as both innovative and
hard-nosed. At her direction, Narinex had outsourced some of its R&D to bring new offerings to market
more quickly, and she had negotiated performance-based contracts that kept the supply chain lean and
mean. She had also sold the corporate jet and refused a company car, to show her commitment to limiting
overhead.
Within 20 minutes Dyson and Tyler were waiting for Brown in her office. These senior managers were
accustomed to her urgent summons and the subsequent grilling. Tyler had also seen the Glistrom
announcement and knew Brown would be anxious. It was a multiyear deal potentially worth $50 million or
more.
“I’ve already asked Ian to get competitive intelligence from his team,” Tyler said, referring to Ian Jones, the
VP of sales. “He did mention that Glistrom is generating buzz in the field.”
“‘Buzz’ doesn’t tell me much. How quickly can you two turn whatever he has into something we can act
on?” Brown demanded.
Tyler and Dyson exchanged a glance. “Can we have 24 hours?” Dyson asked.
With a nod, Brown sent them off to solve the Glistrom puzzle.
From the Mouths of Babes
At 9:00 the next evening, Brown was sitting at her kitchen counter with a bowl of tomato soup and a twopage memo from Tyler and Dyson. Their analysis of previous-versus-current RFPs highlighted one clear
area of concern: sustainability.
“Our initial research shows that we’re on target with pricing and terms. Anecdotal information suggests that
competitors are offering codevelopment of custom components, but we are confident we can match that.
Previous initiatives to outsource some R&D have connected Narinex to a great network of global designers.
The biggest change in the market is greater emphasis on sustainability: Some customers are looking beyond
compliance issues to how we’re handling waste, whether our suppliers pay fair wages, and even if we’ve
eliminated printed documentation and moved everything online. The U.S. federal government and WalMart have incorporated sustainability disclosures into their purchasing RFPs, and we believe the prevalence
of such disclosures will continue to grow. Glistrom recently hired its first chief sustainability officer (CSO),
possibly in response to these market pressures.”
“And what are we doing about it?” Brown wondered aloud. She examined the summary of sustainability
initiatives the company had already pursued: installing a green roof on its German plant to cut energy costs,
reducing packaging by a third, shifting the bulk of its international shipping to a vendor with the most fuel-
1
efficient air fleet, and, yes, moving all documentation online. She noted that some efforts had yielded
re …
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