ThisSession…30mins

• Fast-pacedoverviewofkeyexamples&relevanttheoriestosupport8importantSectionBtopics• Answeryourquestions(inchat)

aboutSectionB

WhatWe’llCover…

LeadershipstylesChangemanagementGrowthstrategyBusinessethicsCorporatesocialresponsibilityPolitical&legalenvironmentEurope(inclBrexit)Organisationalculture

TopicAreas KeyModels

Porter(5Forces)Lewin’sForceFieldAnalysisAnsoffHandyCultureLeadershipstylesPESTLE

LeadershipStyles

GreatExamples Models/Theory

KeyIssues

SatyaNadella&SteveBallmer(Microsoft)HarrietGreen(exThomasCook)MoyaGreene(RoyalMail)HowardSchultz(Starbucks)StephenElop(exNokia)JeffreySkilling(exEnron)HerbKelleher(SouthwestAirlines)MichaelO’Leary(Ryanair)DaveLewis(Tesco)

Autocratic|Democratic|Paternalistic|Laissez-faire

Canabusinesschangesuccessfullystrategicdirectionwithoutnewleadership?Isnewleadershiprequiredforsuccessfulchange?Cannewleadershipchangeculture?

ChangeManagement

GreatExamples Models/Theory

KeyIssues

RoyalMail(privatisation&deregulation)Microsoft(fromhardwaretothecloud)BBC(retrenchment&regulation)Sony(“Sonymustchange,Sonywillchange”)Barclays(failureofchangeprogramme)VW(needforchangeafteremissionsscandal)Tesco(DaveLewis)

Lewin’sForceFieldAnalysisStepchangevincrementalchange

Howcanresistancetochangebeovercome?Growingexternalforcesforchange(linkwithPESTLE)Isnewleadershipneededforeffectivechange??

GrowthStrategy

GreatExamples Models/Theory

KeyIssues

OrganicgrowthAldiUberNetflixDominosUKWhitbread(Costa,PremierInn)Apple(butalsoexternal)ExternalgrowthAlphabet(diversification)Amazon(butalsointernal)

AnsoffMatrixSynergy&EconomiesofscalePortergenericstrategiesBostonMatrix

Bettertofocusordiversify?RisksoftakeoversvbenefitsIsorganicbetterthanexternal?

BusinessEthics

GreatExamples Models/Theory

KeyIssues

PoorEthicsFinancialservices(PPImis-selling)VW&others(dieselemissions)Pharmaceuticals(bribery)Taxavoidance(multinationals)Suppliers(Tesco)Energycompanies(tariffs)GoodethicsCo-operativeBankPepsiCo

Continuumofethics:Amoral|Legalistic|Responsive|Ethical

IsactingethicallyasourceofcompetitiveadvantageShouldbusinessesbeallowedtoactintheirbestinterests?Isthereacaseforgreaterlegislationandregulationtoenforcebusinessethics?

CorporateSocialResponsibility

GreatExamples Models/Theory

KeyIssues

Unilever(sustainablelivingplan)IkeaM&S(PlanA)SouthwestAirlines(thebusinessofbusinessispeople)QuestionMarksGSK(allegedbribery,corruption)BP&Shell(environmentaldamage)Financialservices(mis-selling)Multinationals(taxavoidance)

MiltonFriedman– ShareholderValueStakeholdermodelElkington– TripleBottomLine(People,Planet,Profit)

CanbusinessesignoreCSRiftheywanttobesuccessfulShouldprofitmaximisationstillbethemainobjectiveofbusiness?

Political&LegalEnvironment

GreatExamples Models/Theory

KeyIssues

Sugartax(linkedwithCSR&ethics)Nationallivingwage(impactonbusinesscosts)Brexit(opportunityorthreat)Taxavoidance(globalactionbyGovts)BPDeepwaterHorizon(costsofbreachingenvironmentallaws)Greentaxes(impactonenergycostsformanufacturers)

RegulationvSelf-RegulationStakeholdermodel

Changesinlegislation:opportunityorthreat?Shouldbusinessactivityberegulatedmorecloselyinordertoensuretheymeetsocietalneeds?

Business&Europe(inclBrexit)

GreatExamples Models/Theory

KeyIssues

Nissan(Sunderland=Europe’smostefficientcarplant)AirbusUK(pan-Europeanbusiness)Ryanair (deregulationinSingleMarkethasfacilitatedgrowth)Rolls-Royce:BrexitwarningJohnTimpson,LukeJohnson&JohnCaudwell– entrepreneursinfavourofBrexitJCB– LordBamford infavourofBrexit

GlobalisationPriceelasticityofdemand(tariffs)

IsBrexitathreatoropportunity?IsBrexitthemostsignificantthreatfacingbusinessesintheUK?HowdoesEuropecomparewithemergingmarketsasaopportunityforUKbusinesses?

OrganisationalCulture

GreatExamples Models/Theory

KeyIssues

Apple(innovation)JohnLewis(partnershipculture)Zappos(businessbasedonculture)Enron(toxicculture)Barclays(failedculturechange)Tesco(unethicalculture)Ikea(cultureofthrift&teamwork)Disney(“characters”)Daimler/Chryslermerger(cultureleadingtofailedmerger)

HandyFourClassesofCulture(Power.Role,Task,Person)Schein– layersofculture

Isnewleadershipneededtochangeorganisationalculture?Isculturethereasonwhybusinessesactunethically?Isaninnovativeculturerequiredforlong-termbusinesssuccess?

PickingYourSectionBCaseStudiesCarefully:E.g.TescoUnderDaveLewis

SectionB DaveLewis/TescoExamples

BusinessEthics Bettertreatmentofsuppliers

OrganisationalCulture

MovedHQfromCheshuntRemoveddirectors linkedtoaccountingscandal

Leadership Decisive,early actionSignaledneedforchangeinstrategicdirection

ChangeManagement

Memoto50,000staff onneedforurgentchangeBrought innewmanagement

ExternalEnvironment

IntensepricecompetitionBattleagainstthegrocerydiscounters (Aldi,Lidl)

Globalisation Strategy ofinternationalexpansionscaledbackFocusnowoncoreretailmarkets

Retrenchment Saleofnon-core businesses &rationalised productrangeStoreclosureprogramme&suspension ofnewstores

tutor2u12for2016:GreatforBOTHSectionAandSectionB