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Corporate Strategy

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Corporate Strategy

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Corporate Strategy

  1. 1. Corporate Strategy Rebecca Whitnah BusM 361 Section 1 November 29, 2005
  2. 2. Agenda <ul><li>Definition of corporate strategy </li></ul><ul><li>How corporate strategy can be used in your organization </li></ul><ul><li>Benefits of corporate strategy </li></ul><ul><li>Critical factors in corporate strategy </li></ul><ul><li>Importance and implementation of corporate strategy </li></ul>
  3. 3. <ul><li>Alice: Which way should I go? </li></ul><ul><li>Cat: That depends on where you are going. </li></ul><ul><li>Alice: I don’t know where I’m going! </li></ul><ul><li>Cat: Then it doesn’t matter which way you go!! </li></ul><ul><li>Lewis Carroll, Through the Looking Glass, 1872 </li></ul><ul><li>To be a successful company, a planning process should be initiated for making day-to-day decisions and ultimately deciding which direction the company should go </li></ul>
  4. 4. What is Corporate Strategy? <ul><li>Process by which members of an organization envision its future and develop the necessary procedures and operations to achieve that future (Goodstein, 3) </li></ul>
  5. 5. How can corporate strategy be used in your organization? <ul><li>1. Provides a plan </li></ul><ul><li>2. Establishes a pattern of actions </li></ul>
  6. 6. How can corporate strategy be used in your organization? <ul><li>3. Establishes position </li></ul><ul><li>4. Incorporates perspective </li></ul><ul><li>(Henry Mintzberg) </li></ul>
  7. 7. What are the benefits of strategic planning? <ul><li>Provides framework for action </li></ul><ul><ul><li>Mind-sets of employees and organization </li></ul></ul><ul><li>Enables organization to share a vision and a belief that the vision can be fulfilled </li></ul><ul><ul><li>Energy comes to employees </li></ul></ul>
  8. 8. What are the benefits of strategic planning, part II? <ul><li>Evaluate your competitors & adjust to current events </li></ul><ul><ul><li>Annual evaluations </li></ul></ul><ul><li>Motivate & encourage managers </li></ul>
  9. 9. Six Critical Strategic Factors <ul><li>STRATEGY IS…. </li></ul><ul><li>A coherent, unifying, and integrative pattern of decisions </li></ul><ul><li>An establishment of an organization’s long-term objectives, plans, and allocation of resources </li></ul><ul><li>A definition of an organization’s competitive domain </li></ul>
  10. 10. Six Critical Strategic Factors, Part II <ul><li>STRATEGY IS… </li></ul><ul><li>4. A response to internal strengths & weaknesses and external threats & opportunities </li></ul><ul><li>5. Developing differentiating tasks and roles at all functional levels </li></ul><ul><li>6. Identifying the economic factors the organization will contribute to stakeholders </li></ul><ul><li>(Goodstein, Nolan, Pfeiffer 3) </li></ul>
  11. 11. Importance of Senior Management <ul><li>Two decisions for organizations: </li></ul><ul><li>Strategic decisions </li></ul><ul><li>Strategically driven decisions </li></ul><ul><li>Senior management needs to be involved in both </li></ul><ul><li>Must be committed to implement strategy </li></ul>
  12. 12. How can you implement strategy? <ul><li>Focus on a single “driving force” </li></ul><ul><li>Products offered </li></ul><ul><li>Market needs </li></ul><ul><li>Technology </li></ul><ul><li>Production Capability </li></ul><ul><li>Method of Sale </li></ul><ul><li>Method of Distribution </li></ul>
  13. 13. Additional types of driving forces… <ul><li>Natural resources </li></ul><ul><li>Size/growth </li></ul><ul><li>Return/profit </li></ul><ul><li>(Kepner & Tregoe) </li></ul>
  14. 14. Questions to consider for your company’s corporate strategy <ul><li>Is the current strategy implicit or explicit? </li></ul><ul><li>What is happening in the larger, social, and educational environments? </li></ul><ul><li>What are our growth, size, and profitability goals? </li></ul><ul><li>In which markets will we compete? </li></ul><ul><li>In which businesses & geographic areas? </li></ul>
  15. 15. To strategically succeed your company needs to know… <ul><li>Where you are going </li></ul><ul><li>-mission statement, specific goals </li></ul><ul><li>What is the environment </li></ul><ul><li>How do you get there </li></ul>
  16. 16. CASE STUDY: FedEx <ul><li>What should your company bring to the table? </li></ul><ul><li>Focus on company </li></ul><ul><li>Consider core competencies </li></ul><ul><ul><li>Don’t limit to just core competencies </li></ul></ul>
  17. 17. CASE STUDY: FedEx <ul><li>Core competencies: package routing & delivery </li></ul><ul><li>Grew out of technology & skills </li></ul><ul><li>- bar-codes </li></ul><ul><li>- wireless communication </li></ul>
  18. 18. CASE STUDY: FedEx Conclusion <ul><li>“Whole package” – those things that can’t be reproduced </li></ul><ul><li>Patented products </li></ul><ul><li>Strong brands & reputations </li></ul><ul><li>Relationships w/suppliers & customers </li></ul><ul><li>Position in industry </li></ul>
  19. 19. Exercise <ul><li>Break into groups of 4 -5 </li></ul><ul><li>List 4 strengths of your company & 4 weaknesses </li></ul><ul><li>Applying those strengths & weaknesses you listed, answer the following questions: </li></ul><ul><li>Where is your company going? </li></ul><ul><li>Who are your competitors & your environment? </li></ul><ul><li>How are you going fortify your weaknesses? </li></ul>
  20. 20. Summary <ul><li>Corporate strategy is a process where members envision long-term goals for an organization </li></ul><ul><li>Corporate strategy should include all members of the organization </li></ul><ul><li>In order for strategic success, each individual needs to be committed to the objectives…this is a direct result from a committed senior management team </li></ul>
  21. 21. Summary continued <ul><li>A main benefit for implementing corporate strategy is an increased competitive advantage in all functional levels of business </li></ul><ul><li>Strategic planning should consider where the company is going, the company’s environment, and how the company is going to attain its goals </li></ul>
  22. 22. Suggested Reading <ul><li>Harvard Management Update, Vol. 5, #1, January 2000 </li></ul><ul><li>Applied Strategic Planning, Leonard Goodstein, Timothy Nolan, and J. William Pfeiffer, 1993, pp. 1, 3-5 </li></ul><ul><li>Strategy: Definitions and Meanings, Fred Nickols, http://home.att.net/~nickols/strategy_definition.htm , 2000 </li></ul><ul><li>Top Management Strategy, Benjamin Tregoe & John Zimmerman, pp. 7 </li></ul><ul><li>The Rise and Fall of Strategic Planning, Henry Mintzberg, 1997, pp. 3 </li></ul>

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