Your SlideShare is downloading. ×
Strategy Business Intent
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Strategy Business Intent

401

Published on

Business Policy & Strategy

Business Policy & Strategy

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
401
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Strategy Strategic Management Farooq OmarDo Not Copy Copy Rights protected By the Author
  • 2. Planning - strategic - emergent - contingency plansObjectives: LT, STDo Not Copy Copy Rights protected By the Autor
  • 3. Mission statement Environmental analysis (SWOT) Competitive analysis (Porter’s 5 forces) Portfolio analysisDo Not Copy Copy Rights protected By the Autor
  • 4. Identifying Mission Statement Components: A compilation of Excerpts from Actual Corporate Mission Statements1. Customer- We believe our first responsibility is to the doctors, nurses, andmarket patients, to mothers and all others who use our products and services. (Johnson & Johnson) To anticipate and meet market needs of farmers, ranchers, and rural communities within North America. (CENEX)2. Product- AMAX’s principal products are molybdenum, coal, iron, ore,service copper, lead, zinc, petroleum and natural gas, potash, phosphates, nickel, tungsten, silver, gold, and magnesium. (AMAX)3. Geographic We are dedicated to the total success of Corning Glass Works asdomain a worldwide competitor. (Corning Glass) Do Not Copy Copy Rights protected By the Autor
  • 5. Identifying Mission Statement Components: A compilation of Excerpts from Actual Corporate Mission Statements (cont’d)4. Technology Control Data is the business of applying microelectronics and computer technology in two general areas: computer-related hardware and computing-enhancing services, which include computation, information, education, and finance. (Control Data) The common technology in these areas relates to discrete particle coatings. (NASHUA)5. Concern for In this respect, the company will conduct its operation prudently,Survival and will provide the profits and growth which will assure Hoover’s ultimate success. (Hoover Universal)6. Philosophy We are committed to improve health care throughout the world. (Baxter Travenol) We believe human development to be the worthies of the goals of civilization and independence to be the superior condition for nurturing growth in the capabilities of people. (Sun Company) Do Not Copy Copy Rights protected By the Autor
  • 6. Identifying Mission Statement Components: A compilation of Excerpts from Actual Corporate Mission Statements (cont’d)7. Self-concept Hoover Universal is a diversified, multi-industry corporation with strong manufacturing capabilities, entrepreneurial policies, and individual business unit autonomy. (Hoover Universal)8. Concern for We are responsible to the communities in which we live and workpublic image and to the world community as well. (Johnson & Johnson) Also, we must be responsive to the broader concerns of the public, including especially the general desire for improvement in the quality of life, equal opportunity for all, and the constructive use of natural resources. (Sun Company) Do Not Copy Copy Rights protected By the Autor
  • 7. This exercise should help you think about 1) your long-term personal goals, and 2) companies you might want to work for 1. What do you want inscribed on your gravestone? What would be your primary goal if you were told you had 18 months to live? If you had a child, what is the most important lesson that you would like him or her to know? Book says, “…every organization has a mission statement that defines its purpose and answers the question ‘what business are we in?’Do Not Copy Copy Rights protected By the Autor
  • 8. Use the answers to the above questions to write a personal mission statement/paragraph that should specify your life’s goal! Consider: Values: what’s important to you, e.g. health, friends Principles: guidelines to follow, e.g. fairness, quality, service Strengths: your qualities, e.g. adaptable, confident Blockers: what’s stopping you? e.g. shyness, laziness Next write a paragraph describing the mission of a company you would want to work for.Do Not Copy Copy Rights protected By the Autor
  • 9. SWOT analysis Environmental Scan – Both internal and external factors need to be considered: 1. Internal factors – characteristics in the firm (management, mission, resources, systems process, and structure) that can be considered strengths or strong points and weaknesses or weak points. 2. External factors - characteristics in the environment that are “outside” the firm (customers, competitors, suppliers, labor force, shareholders, society, technology, the economy, and governments) that represent opportunities to tap or threats to flank.Do Not Copy Copy Rights protected By the Autor
  • 10. Starbuck’sFive-ForceCompetitive Analysis Exhibit –5Do Not Copy Copy Rights protected By the Autor
  • 11. Portfolio Analysis: BCG Matrix Exhibit 5–11Do Not Copy Copy Rights protected By the Autor
  • 12. BUSINESS STRENGTH INDUSTRY ATTRACTIVENESSDo Not Copy Copy Rights protected By the Autor
  • 13. Organizational Strategies occur on 3 levels: Grand, Business, and Functional A. Grand level strategies: - 1. Growth (a. concentration; b. diversification) - 2. Retrenchment - 3. Stability (status quo) - 4. Combination (multiple strategies)Do Not Copy Copy Rights protected By the Autor
  • 14. 1a. Growth through concentration – concentrating on your existing specialization i. market penetration – aggressively targeting current markets with existing product specialties ii. market development/geographic expansion – expanding into new markets iii. market segmentation – dividing existing markets iv. product development – modify existing products, or develop new but related productsDo Not Copy Copy Rights protected By the Autor
  • 15. 1b. Growth through diversification – branching out into new areas i. horizontal integration – expanding across the general industry (e.g. Coke acquires Minutemaid). ii. vertical integration – expanding into industries populated by suppliers/buyers (e.g. Ford buys steel plant). iii. conglomerate diversification – expanding into unrelated industries (e.g. GM buys Hershey’s candy). iv. joint venture – expanding together with another company in order to diversity efficiently.Do Not Copy Copy Rights protected By the Autor
  • 16. 2. Retrenchment i. Turnaround – downsizing existing company/divisions ii. Divestiture – selling off existing divisions/subdivisions iii. Liquidation – Chapter 11 bankruptcyDo Not Copy Copy Rights protected By the Autor
  • 17. 3. Stability - maintain status quo (e.g. continuous improvement) 4. Combination – multiple use of strategiesDo Not Copy Copy Rights protected By the Autor
  • 18. B. Business level strategies 1. Michael Porter’s Competitive Strategies: i. low cost (e.g. Wal-Mart) ii. differentiation (Volvo/Mercedes) iii. focus (Penny’s/Pea in a Pod) 2. Adaptive business level strategies: a. prospecting b. defending c. analyzingDo Not Copy Copy Rights protected By the Autor
  • 19. B. Business level strategies (cont’d) 3. Product life cycle i. introduction stage ii. growth stage iii. maturity stage iv. decline stageDo Not Copy Copy Rights protected By the Autor
  • 20. Product Life Cycle: StarbucksDo Not Copy Copy Rights protected By the Autor
  • 21. C. Functional level strategies i. Marketing ii. Manufacturing iii. Human resources iv. Etc.Do Not Copy Copy Rights protected By the Autor
  • 22. Strategy Formulation is followed by ImplementationDo Not Copy Copy Rights protected By the Autor
  • 23. Seven S Model of Implementation STRATEGY SKILLS STRUCTURE SHARED VALUES STAFF SYSTEMS STYLEDo Not Copy Copy Rights protected By the Autor
  • 24. Seven S Model1. Strategy – Plan or course of action leading to the allocation of firm’s resources to reach identified goals.2. Structure – The ways people and tasks relate to each other. The basic grouping of reporting relationships and activities. The way separate entities of an organization are linked.3. Shared Values – The significant meanings or guiding concepts that give purpose and meaning to the organization.4. Systems – Formal processes and procedures, including management control systems, performance measurement and reward systems, and planning and budgeting systems, and the ways people relate to them.5. Skills – Organizational competencies, including the abilities of individuals as well as management practices, technological abilities, and other capabilities that reside in the organization.6. Style – The leadership style of management and the overall operating style of the organization. A reflection of the norms people act upon and how they work and interact with each other, vendors, and customers.7. Staff – Recruitment, selection, development, socialization, and advancement of people in the organization.Do Not Copy Copy Rights protected By the Autor
  • 25. Figure 4. Contingency – Constrained Coefficients.Do Not Copy Copy Rights protected By the Autor

×