Strategy1   Wali Memon                 Wali Memon
Planning         - strategic         - emergent                  - contingency plans    Objectives: LT, ST2    Wali Memon
Mission statement      Environmental analysis (SWOT)      Competitive analysis (Porter’s 5 forces)      Portfolio analysis...
Identifying Mission Statement Components:       A compilation of Excerpts from Actual Corporate                     Missio...
Identifying Mission Statement Components:       A compilation of Excerpts from Actual Corporate                Mission Sta...
Identifying Mission Statement Components:       A compilation of Excerpts from Actual Corporate                Mission Sta...
This exercise should help you think about 1) your long-term personal goals,    and 2) companies you might want to work for...
Use the answers to the above questions to write a    personal mission statement/paragraph that    should specify your life...
SWOT analysis      Environmental Scan – Both internal and external      factors need to be considered:        1. Internal ...
Starbuck’s Five-ForceCompetitiveAnalysis  10   Wali Memon                    Exhibit –5
Portfolio Analysis: BCG Matrix11   Wali Memon                                 Exhibit 5–11
BUSINESS STRENGTH     INDUSTRY ATTRACTIVENESS12                      Wali Memon
Organizational Strategies occur on 3     levels: Grand, Business, and Functional        A. Grand level strategies:        ...
1a. Growth through concentration – concentrating on your existing specialization i. market penetration – aggressively targ...
1b. Growth through diversification – branching     out into new areas       i. horizontal integration – expanding across t...
2. Retrenchment                     i. Turnaround – downsizing existing                  company/divisions                ...
3. Stability - maintain status quo (e.g.                  continuous improvement)             4. Combination – multiple us...
B. Business level strategies     1. Michael Porter’s Competitive Strategies:         i. low cost (e.g. Wal-Mart)         i...
B. Business level strategies (cont’d)         3. Product life cycle                  i. introduction stage                ...
Product Life Cycle: Starbucks20    Wali Memon
C. Functional level strategies     i. Marketing     ii. Manufacturing     iii. Human resources     iv. Etc.21     Wali Memon
Strategy Formulation is followed byImplementation22   Wali Memon
Seven S Model of Implementation                  STRATEGY      SKILLS                 STRUCTURE                    SHARED ...
Seven S Model1. Strategy – Plan or course of action leading to the allocation of firm’s   resources to reach identified go...
Figure 4. Contingency–Constrained Coefficients.25   Wali Memon
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Strategy

  1. 1. Strategy1 Wali Memon Wali Memon
  2. 2. Planning - strategic - emergent - contingency plans Objectives: LT, ST2 Wali Memon
  3. 3. Mission statement Environmental analysis (SWOT) Competitive analysis (Porter’s 5 forces) Portfolio analysis3 Wali Memon
  4. 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) 4 Wali Memon
  5. 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 5 Wali Memon of civilization and independence to be the superior condition for nurturing growth in the capabilities of people. (Sun Company)
  6. 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) 6 Wali Memon
  7. 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?’7 Wali Memon
  8. 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.8 Wali Memon
  9. 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.9 Wali Memon
  10. 10. Starbuck’s Five-ForceCompetitiveAnalysis 10 Wali Memon Exhibit –5
  11. 11. Portfolio Analysis: BCG Matrix11 Wali Memon Exhibit 5–11
  12. 12. BUSINESS STRENGTH INDUSTRY ATTRACTIVENESS12 Wali Memon
  13. 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)13 Wali Memon
  14. 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 products14 Wali Memon
  15. 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.15 Wali Memon
  16. 16. 2. Retrenchment i. Turnaround – downsizing existing company/divisions ii. Divestiture – selling off existing divisions/subdivisions iii. Liquidation – Chapter 11 bankruptcy16 Wali Memon
  17. 17. 3. Stability - maintain status quo (e.g. continuous improvement) 4. Combination – multiple use of strategies17 Wali Memon
  18. 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. analyzing18 Wali Memon
  19. 19. B. Business level strategies (cont’d) 3. Product life cycle i. introduction stage ii. growth stage iii. maturity stage iv. decline stage19 Wali Memon
  20. 20. Product Life Cycle: Starbucks20 Wali Memon
  21. 21. C. Functional level strategies i. Marketing ii. Manufacturing iii. Human resources iv. Etc.21 Wali Memon
  22. 22. Strategy Formulation is followed byImplementation22 Wali Memon
  23. 23. Seven S Model of Implementation STRATEGY SKILLS STRUCTURE SHARED VALUES STAFF SYSTEMS STYLE23 Wali Memon
  24. 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. Wali Memon 24
  25. 25. Figure 4. Contingency–Constrained Coefficients.25 Wali Memon
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