STRATEGIC LEADERSHIP

WHAT IS A STRATEGY?
A strategy is a set of related actions that managers take to increase their companys performance. It is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage.

COMPETITIVE ADVANTAGE
There is competitive advantage when a companys profitability is greater than the average profitability of all other companies in the industry and who are competing for the same customers. Competitive advantage is when a company implements a strategy competitors are unable to duplicate or find too costly to try to imitate. A company has sustainable competitive advantage when its products /services are valuable, rare, costly to imitate, and non substitutable.

A FEW TERMINOLOGIES
is an investors uncertainty about economic gains or losses that will result from a particular investment. Strategic leadership: is about how effectively to manage a companys strategy making process to create a competitive advantage. Strategic making process: is process by which managers select and then implement a set of strategies that aim to achieve competitive advantage.
Risk:

ULTIMATE GOAL OF A COMPANY

Maximizing shareholders value is the ultimate goal. Reasons for the same are :

Share holders provide risk capital that cannot be recovered if the company goes bankrupt. Shareholders are the legal owners of the company and therefore their share represent and generate profit.

MANAGERS TASK HERE

To maximize shareholders value managers must formulate and implement strategies that enable their company to outperform their rivals. Higher the profitability, greater the competitive advantage. Managers pursue strategies to make a company unique and different from other companies.

CHARACTERISTICS OF STRATEGIC LEADERS:

1.The vision eloquence and consistency: The key difference between a leader and a strategic leader is that the strategic leader has a well-defined vision for the future. He has a clear picture of what the company will be like in five years? Some call it a vision, others call it a strategic positioning statement, but whatever you call it, a strategic leader knows where his people are going. A strategic leader needs to be able to communicate their vision in order for others to sign up for the journey and understand their role in it. That also means that the vision needs to be motivational with clear responsibilities and expectations set for all involved.

2. Articulation of their business model How various strategies fit together into a congruent whole. Sam Walton of their business model. Walmart Discount Store, Walmart Super centre, Sam club, Walmart Neighbourhood Market, Walmex, Wal-Mart International.

3. Commitment: By words and action sincere to his workers. Walt Disney died 14 days before the Disney land opened.

4. Well informed: Develop network of formal and informal sources. Ray Kroc of McDonald had the unconventional way of collecting information. He visited restaurants incognito, obtained firsthand information on the needs of customers and from every source.

5. Willing to delegate power: Overloaded with responsibilities, he should empower subordinates . But should have a control over key decisions.

6. Astute use of power: According to Edward Wrapp Effective leaders are very astute in their use of power. They play power game with skill, and attempt to build consensus. Act as members of the coalition, appear democratic and get things done through intelligent use of power. Power comes from controlling resources that are important to the organization. Like knowledge, position, budgets, money To use astute of power one need not be a CEO. He can be in any level in the organization.

7. Emotional intelligence: A bundle of psychological attributes like Self-awareness, Self regulation, Motivation, Empathy Identification with and understanding of another's situation, feelings, and motive)Social skills. EQ" represents a relative measure of a person's healthy or unhealthy development of their innate emotional intelligence.
8. They balance the present with the future In making resource and operational decisions, especially when planning investments in capital, including technology and management (or getting the right seats on the bus, as Collins says) at every level.

9. Works to influence not dominate: Another key point to remember is that strategic leadership works best when the leader is able to use influence, not dominance, to rally the troops.

10. To manage through tough times as well as good times. In fact, Herb Kelleher, one of Southwests founders has been quoted as saying, Manage in good times, so the company can do well in bad times. So far at least, they are the only airline that hasnt had to resort to charging for checked baggage.

11.Their ability to anticipate and manage through chaos, Which is becoming the norm. Many say, Why plan, when everything changes? The key to a good plan is that you know where you are going long-term, but you can change the road that gets you there in the short-term, if necessary.

THANK YOU