Knowledge Objectives <ul><li>Define the term  strategic management  and explain components of strategy formulation and  im...
Understanding Strategic Management <ul><li>Strategic view helps frame decision making for other managers </li></ul><ul><li...
Strategic Management = Strategic Planning + Implementation + Control <ul><li>Strategic Management </li></ul><ul><ul><li>Cr...
<ul><li>Strategy </li></ul><ul><ul><li>An integrated externally-oriented perception of how to achieve the organization’s m...
Thinking Strategically <ul><li>Synergy </li></ul><ul><ul><li>The whole is greater than the sum of the parts </li></ul></ul...
The Strategic  Management Process <ul><li>Steps in the Strategic Management Process </li></ul><ul><ul><li>Formulate overal...
Porter’s Generic  Competitive Strategies <ul><li>Model’s Competitive Variables </li></ul><ul><ul><li>1. How to compete (co...
Porter’s Generic  Competitive Strategies  (cont’d) <ul><li>Focus Strategies </li></ul><ul><ul><li>Variations on cost/diffe...
Forecasting Techniques <ul><li>Scenario analysis </li></ul><ul><ul><li>Preparing written descriptions of alternative but e...
Thinking Strategically <ul><li>The “Internet” World </li></ul><ul><ul><li>There are still a lot of ways to make money on t...
Formulation <ul><li>Which customers to serve?. </li></ul><ul><li>Identify Current & Future Competitive (dis)advantages </l...
Formulation <ul><li>Identify, then perform competitive comparison of key capabilities, e.g. </li></ul><ul><ul><li>Quick re...
Formulation  <ul><li>Select option(s) </li></ul><ul><li>Formulate key objectives ( Results-oriented, measurable objectives...
Strategic Implementation <ul><li>Implementation of Strategic Plans </li></ul><ul><ul><li>Cascading the plan - shift to imp...
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Strategic Management

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Strategic Management

  1. 1. Knowledge Objectives <ul><li>Define the term strategic management and explain components of strategy formulation and implementation </li></ul><ul><li>Understand synergy and identify examples </li></ul><ul><li>Describe generic competitive strategies. </li></ul><ul><li>Explain the nature and purpose of SWOT analysis. </li></ul>
  2. 2. Understanding Strategic Management <ul><li>Strategic view helps frame decision making for other managers </li></ul><ul><li>Employees who think in strategic terms understand top management rationales </li></ul><ul><li>Trend is toward greater teamwork and cooperation throughout the planning cycle </li></ul>
  3. 3. Strategic Management = Strategic Planning + Implementation + Control <ul><li>Strategic Management </li></ul><ul><ul><li>Creating a fit between the organization and its changing environment. </li></ul></ul><ul><ul><ul><li>Includes budget control, long-range planning, and strategic planning. </li></ul></ul></ul><ul><ul><ul><li>Merges strategic planning, implementation, and control to create a dynamic process. </li></ul></ul></ul>
  4. 4. <ul><li>Strategy </li></ul><ul><ul><li>An integrated externally-oriented perception of how to achieve the organization’s mission. </li></ul></ul><ul><li>Strategic Planning </li></ul><ul><ul><li>The process of determining how to pursue the organization’s long-term goals with resources expected to be available. </li></ul></ul>Strategic Management = Strategic Planning + Implementation + Control (cont’d)
  5. 5. Thinking Strategically <ul><li>Synergy </li></ul><ul><ul><li>The whole is greater than the sum of the parts </li></ul></ul><ul><li>Types of synergy </li></ul><ul><ul><li>Market: extending products to new markets. </li></ul></ul><ul><ul><li>Cost: savings from combinations of common-base operations, resources, and facilities (scope economies). </li></ul></ul><ul><ul><li>Technological: the transfer and application of technologies to new markets. </li></ul></ul>
  6. 6. The Strategic Management Process <ul><li>Steps in the Strategic Management Process </li></ul><ul><ul><li>Formulate overall strategy </li></ul></ul><ul><ul><li>Formulate supporting strategic objectives </li></ul></ul><ul><ul><li>Make implementation decisions </li></ul></ul><ul><ul><li>Establish control systems </li></ul></ul>
  7. 7. Porter’s Generic Competitive Strategies <ul><li>Model’s Competitive Variables </li></ul><ul><ul><li>1. How to compete (cost vs. being unique) </li></ul></ul><ul><ul><li>2. How broad is the target market </li></ul></ul><ul><li>Cost Leadership Strategy </li></ul><ul><ul><li>Lowest cost structure position - provides advantages in pricing, supplier negotiation </li></ul></ul><ul><li>Differentiation Strategy </li></ul><ul><ul><li>Unique/superior value position - provides brand loyalty. </li></ul></ul>
  8. 8. Porter’s Generic Competitive Strategies (cont’d) <ul><li>Focus Strategies </li></ul><ul><ul><li>Variations on cost/differentiation but with a focus on narrow or regional market segment </li></ul></ul>
  9. 9. Forecasting Techniques <ul><li>Scenario analysis </li></ul><ul><ul><li>Preparing written descriptions of alternative but equally likely future situations. </li></ul></ul><ul><ul><ul><li>Longitudinal scenarios: describing how the future situations will evolve from the present. </li></ul></ul></ul><ul><ul><ul><li>Cross-sectional scenarios: describing future situations at a given point in time. </li></ul></ul></ul>
  10. 10. Thinking Strategically <ul><li>The “Internet” World </li></ul><ul><ul><li>There are still a lot of ways to make money on the Internet. </li></ul></ul><ul><ul><li>Customer loyalty is built with reliable brand names and “sticky” web sites. </li></ul></ul><ul><ul><li>Next Big Thing - Broadband/WiFi </li></ul></ul>
  11. 11. Formulation <ul><li>Which customers to serve?. </li></ul><ul><li>Identify Current & Future Competitive (dis)advantages </li></ul><ul><ul><li>Find “fit” potential with SWOT ( S trengths, W eaknesses, O pportunities, and T hreats) </li></ul></ul><ul><li>Assess likely competitive response(s) </li></ul>
  12. 12. Formulation <ul><li>Identify, then perform competitive comparison of key capabilities, e.g. </li></ul><ul><ul><li>Quick response to market trends. </li></ul></ul><ul><ul><li>Rapid product development. </li></ul></ul><ul><ul><li>Rapid production and delivery. </li></ul></ul><ul><ul><li>Continuous cost reduction. </li></ul></ul><ul><ul><li>Continuous improvement of processes, human resources, and products. </li></ul></ul><ul><ul><li>Greater flexibility of operations. </li></ul></ul>
  13. 13. Formulation <ul><li>Select option(s) </li></ul><ul><li>Formulate key objectives ( Results-oriented, measurable objectives ) </li></ul><ul><ul><li>Identify required activities </li></ul></ul><ul><ul><li>Assign responsibilities </li></ul></ul><ul><ul><li>Estimate time and sequencing of activities </li></ul></ul><ul><ul><li>Determine required resources </li></ul></ul><ul><ul><li>Lead, communicate, and coordinate the elements </li></ul></ul>
  14. 14. Strategic Implementation <ul><li>Implementation of Strategic Plans </li></ul><ul><ul><li>Cascading the plan - shift to implementation & build middle-manager commitment </li></ul></ul><ul><ul><ul><li>new organizational structure(s) </li></ul></ul></ul><ul><ul><ul><li>(reorient or replace) people. </li></ul></ul></ul><ul><ul><ul><li>Culture (new?). </li></ul></ul></ul><ul><ul><ul><li>Control systems. </li></ul></ul></ul>
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