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STRATEGIC LEADERSHIP IN A

COMPETITIVE BUSINESS

ENVIRONMENT

PRESENTER

Prof. Elisante Ole Gabriel

PhD

– Strategic Mark., PhD – SERVQUAL, Mech. Eng, MSc-Intn Bus.

Deputy Permanent Secretary - MIYCS

+255-784-455-499 elisante_gabriel@yahoo.com

www.olegabriel.com

CONTENT

Analysing a Business Environment (Micro &

Macro)

Creating & Sustainable Competitive Advantage

Competitive Strategies

Alternative Strategies for Market & Products

Development

Strategic Thinking =

CONCLUSION

Dreaming the future

Tips for Emerging Leaders (Challenge = Oppt)

E. Ole Gabriel, 0784-455499 2

BUSINESS ENVIRONMENT

ANALYSIS

SWOT/SAOC, PEST & SLEEPTIN

4/10/2020 3

SWOT ANALYSIS

This tool helps to identify the key internal factors (Strengths and Weaknesses) = S

W

The External factors are Opportunities and

Threats ( O

T

)

This is modified: Instead of Weaknesses =

Areas for Improvement and Threats =

Challenges: Hence

S A O C

Create, Sustain a Competitive Advantage

4/10/2020 4

External and Internal Analyses

Environment

Sociocultural

Industry

Environment

By studying the external environment, firms identify what they

might choose to do

Opportunities and threats

Competitor

Environment

Technological

General

4/10/2020 5

The Generic Components of

External Environment (PEST)

Political

Economical

Social

Technological

However, these was found to be limited in expressing the real macro environment

4/10/2020 6

New Dimension of Macro

Environment (Gabriel, 2004)

From 4 components (PEST) to 8 (SLEEPTIN)

Social

Legal

Economical

Ethical

Political

Technological

International

Natural

4/10/2020 7

4/10/2020

Internal Analysis

By studying the internal environment, firms identify what they

can do

Unique resources, capabilities, and core competencies

(sustainable competitive advantage)

8

Challenge of Internal Analysis

How do we effectively manage current core competencies while simultaneously developing new ones?

How do we assemble bundles of resources, capabilities and core competencies to create value for customers?

How do we learn to change rapidly?

HINT: Many leaders fail to properly analyse the internal environment

4/10/2020 9

Components of

Internal Analysis

Competitive

Advantage

Core

Competencies

Discovering Core

Competencies

Strategic

Competitiveness

Capabilities

Resources

• Tangible

• Intangible

Four Criteria of Sustainable

Advantages

• Valuable

• Rare

• Costly to Imitate

• Nonsubstitutable

Value

Chain

Analysis

• Outsource

4/10/2020 10

4/10/2020

BUSINESS DIAGNOSIS

(Porters’ Perspective)

There are two fundamental questions

WHAT MAKES AN

INDUSTRY

ATTRACTIVE?

(PFFF, for Industry Analysis)

WHICH POSITION

GIVES A FIRM

SUPERIOR

PERFORMANCE?

(Generic Strategies)

11

Industry Analysis

Porter discusses the

FIVE FORCES

that determine the nature of competition in an industry :

Threat of new entrants,

Bargaining power of customers,

Bargaining power of suppliers,

Threat of substitute products or services,

Rivalry among industry competitors.

4/10/2020 12

FIVE FORCES FRAMEWORK

– for

INDUSTRY ANALYSIS (By Michael

Porter)

Threat of

New Entrants

Bargaining

Power of

Suppliers

Rivalry Among

Existing Competitors

Bargaining

Power of

Buyers

Threat of

Substitutes

4/10/2020 13

Lessons from Industry Analysis

Industry analysis is the starting point of any strategy.

Business Leaders have to understand the structure of the industries that they are competing in.

Hint: The impact of the Competitive

Forces varies from one market to another!

4/10/2020 14

GENERIC STRATEGIES

In pursuing competitive advantage, a company also has to choose its

scope

Whether it will target a particular segment or go for a broad market (e.g National Vs EAC Market).

These choices define four basic approaches to competitive advantage.

Which set of choices a company makes determines which “generic strategy” as Porter calls it, a company is following.

Avoid being STUCK-IN-THE MIDDLE

4/10/2020 15

GENERIC STRATEGIES

(By M Porter)

Broad Broad

Cost Differentiation

4/10/2020

Focus Focus

Cost Differentiation

Strategic Advantage

16

STUCK-IN-THE MIDDLE

Failure to make a choice means that a company is

stuck - in - the middle

, with no advantage.

The result is poor performance.

Each Manager ought to be strategic on choosing the strategies

A Strategy which is suitable for one market might not be suitable for another.

Strategy shift from one strategy to another ought to be done timely!

You need to THINK STRATEGICALLY to avoid being stuck

– in – Middle.

4/10/2020 17

Three major Types of Mind

(I)

GREAT MINDED PEOPLE

(Make things happen)

(II)

AVERAGE MINDED PEOPLE

(Watch

Things Happening)

(III)

SIMPLE MINDED PEOPLE

(Wonder Why

Things are Happening?)

Where do you belong?

Your people with Helicopter?

E. Ole Gabriel, 0784-455499 18

Why Strategic Thinking for

Emerging Leaders

Changes in Market Structure of the Film Industry

Limited Resources on sectoral needs

Cultural Dynamics which can effect the decisions of customers in the Market

Micro & Macro Factors

Impact of Technology

Changes in Behavior of customers in line with imports

Changes on the Political dynamics & Regulations

E. Ole Gabriel, 0784-455499 19

Six Commandments of Strategic

Leadership

(By Gabriel E, 2002)

1. Create superior performance

2. Sustain superior performance

3. Understand your core functions (Your Value?)

4. Know your Competitor as you know yourself

5. Cope with the speed of Technology. AND

6. Make use of Feedback from your Internal and external customers for Synergy (1 + 1 > 2)

HINT: Always be Visionary with a Dream like Dr.

Martin Luther King Jnr. (1963 for USA)

E. Ole Gabriel, 0784-455499 20

Martin Luther King Jnr. (At the Age of 29yrs)

I Have a Dream..

..

We shall be judged not by the color of our skin but the content of our character!

21

I Have a Dream … Dr. Luther King Jnr

(1963, USA)

That one day, This Nation will raise up..,

Live out its true meaning of its freedom

We will all choose to be self evident, that all people are created EQUALLY…I have a dream..that

..All of us will be able to sit on a table of brotherhood…I have a dream…that

My four little children will one day live in a

Nation…where they will be judged not by the colour of their skin but by the content of their character…

I

HAVE A DREAM

!

I’ve been to the mountaintop..

A day before assassinated)

(By M. Luther King Jnr., At the Age of 39 Yrs in 1969)

We've got some difficult days ahead.

But it really doesn't matter with me now, because I've been to the mountaintop.

And I don't mind.

Like anybody, I would like to live a long life. Longtivity has its place.

But I'm not concerned about that now.

I just want to do God's will.

And He's allowed me to go up to the mountain.

And I've looked over.

And I've seen the Promised Land.

I may not get there with you.

But I want you to know tonight, that we, as a people, will get to the promised land!

And so I'm happy, tonight.

I'm not worried about anything.

I'm not fearing any man!

Mine eyes have seen the glory of the coming of the Lord!!

The Dream of Elisante Ole Gabriel for

Tanzania & Africa (2012)

…. I have a dream that One day

Tanzania will be the richest

Country in the African Continent

…… Africa will also be the most powerful continent economically on the planet Earth

…. Africans need to develop the following for its Youth:

Moral

Capital, Innovativeness,

Homogeneities and

Perseverance (MIHoP)…!

24

TIPS FOR

BUSINESS LEADERS in Africa

The Success of Business depends on

Innovative mind

Manage Competition Strategically

There is no room for losers but winners in the competitive Business Environment

Entrepreneurship Spirit not just skills should be the driving force.

Convert Threats to Opportunities ( Successful life even without Limbs

(A Case of Nick, UK)

E. Ole Gabriel, 0784-455499 25

CONCLUSION

It is the right strategy which can take you to the right Business position.

The Competitive Forces ought to be properly addressed. AND

Make sure you always offer Value to your Market and not just products!

THANK YOU!!!

+255784-455499

E. Ole Gabriel, 0784-455499 26

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