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Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
Strategic Managment
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Strategic Managment

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  • 1. Chapter 08
  • 2.  It’s a long-term perspective of management. What managers do to develop the organization’sstrategies. Strategic management can be used to determinemission, vision, values, goals, objectives, roles andresponsibilities, timelines, etc.Strategies The decisions and actions that determine thelong-run performance of an organization.
  • 3.  Current Mission Situational Analysis Strategy Formulation Strategy Implementation Strategic Control (Review + Evaluation)SW (Internal Audit)OT (External Audit)1. Corporate level2. Business level3. Functional level1. Corporate level2. Business level3. Functional level
  • 4.  A statement of the purpose of the organization, whatthe organization is going to do? What it want toachieve is stated in mission statement. Which portion of the mission statement is to beaccomplished by the organization.
  • 5. "McDonalds brand mission is to be our customersfavorite place and way to eat." We place the customer experience at the core of all wedo. We are committed to our people. We believe in the McDonalds System. We operate our business ethically. We give back to our communities. We grow our business profitably. We strive continually to improve.
  • 6. Situational AnalysisNational/LocalCompanies1.SWOT Analysis(Macro & Micro)2. PEST Analysis(Macro )MultinationalCompanies(MNCs)1.SWOT Analysis(Macro & Micro)2.PESTEL Analysis(Macro )
  • 7. 1. Factor Listing Step 2. TOWS Matrix3. Critical RegionThis area is to be focused.4. Management DecisionManagement decision about overallposition of analysis or factors.Strengths----------------Opportunities-----------------Weaknesses-----------------Threats----------------OS OWTS TWS WOTO W
  • 8. Strengths (Examples)•Excellent sales staff with strongknowledge of existing products•Good relationship with customers•Good internal communications•High traffic location•Successful marketing strategies•Reputation for innovationWeaknesses (Examples)•Currently struggling to meetdeadlines - too much work?•High rental costs•Market research data may be out ofdate•Cash flow problems•Holding too much stock•Poor record-keepingOpportunities (Examples)•Similar products on the market are notas reliable or are more expensive•Loyal customers•Product could be on the market forChristmas•Customer demand - have asked salesstaff for similar productThreats (Examples)•Competitors have a similar product•Competitors have launched a newadvertising campaign•Competitor opening shop nearby•Downturn in economy may meanpeople are spending less
  • 9. Strengths•Government Backing•Surplus of Rs. 50 Carore Annually•Central location in city•Competent and Active TopManagementWeaknesses•Poor Infrastructure•Unqualified faculty•Administrative structure in complexOpportunities•Hire PhD Faculty•Increase in Admissions every year.•Improve Infrastructure /Sub Campuses•Start new degree programThreats•Other universities are planning tocome in Faisalabad.•HEC policies•HEC may stop funding.•Political Pressure
  • 10.  Political Factors Econ0mical Factors Social Factors Technological Factors
  • 11.  Political Factors Econ0mical Factors Social Factors Technological Factors Environmental Factors Legal Factors
  • 12. CorporateStrategyGrand Strategy1.Growth***Integration***Diversification***Penetration2.Stability3. Retrenchment***Divest*** Joint Venture***LiquidationPortfolio Strategy***Portfolio(Business entity)*** SBU*** Overallactivities aredifferent ofdifferent SBUsCSBU1SBU 2P LC
  • 13.  3.1.1.1 BCG (Boston Consultant Group Matrix) Growthshare matrixLHH LMarketGrowthMarket ShareSTARS• More investment wouldbe fruitful.Cash Cows• Maximum milking.•Investment may becontrolled on it.•Earnings > Expenses.• Harvest (Cash Withdrawals)?• Investment in needed toincrease market share.•Investment from cashcows.Dogs• Divest•End•Do not invest anything•Just sell it.
  • 14.  3.1.1.2 GE (General Electric Business Screen)X + #+ # 0# 0 .X : Investment &Hold+: Investselectively andbuild#: Stable0: Harvest.: DivestHMLH M LBusiness StrengthMarketAttractiveness
  • 15. BusinesslevelStrategiesMiles &Snow Model1.Prospector(Lookingforthenewcustomers)2.Defender(Leader)3.Reactor(AgainstAction)4.Analyzer(Basedonanalysis)M.J. PorterModel(GenericCompetitiveStrategy)1.CostLeadership(Nokia)2.Differentiation3.Focus(Only1aspectofproducte.g.Nokia:Durability)

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