Strategic management is a set of managerial decisions and actions that determines the longrun performance of a corporation.
It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control.
The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses.
The presentation contains information about Strategic Planning, Levels of Strategy like Corporate Level Strategy, Business Level Strategy and Functional Level Strategy. The presentation also has many examples and a case study on diversification strategy.
Strategic management
Process of determining an organization’s basic mission and long-term objectives, and then implementing a plan of action for pursuing this mission and attaining these objectives
How to allocate finite resources to achieve long-term objectives
Strategic management is a set of managerial decisions and actions that determines the longrun performance of a corporation.
It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control.
The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses.
The presentation contains information about Strategic Planning, Levels of Strategy like Corporate Level Strategy, Business Level Strategy and Functional Level Strategy. The presentation also has many examples and a case study on diversification strategy.
Strategic management
Process of determining an organization’s basic mission and long-term objectives, and then implementing a plan of action for pursuing this mission and attaining these objectives
How to allocate finite resources to achieve long-term objectives
INTRODUCTION TO MANAGEMENT
PRINCIPLES OF MANAGEMENT
PPT OF THE BOOK
Kathryn M. Bartol,
David C. Martin,
Management (latest edition),
MAIN TOPICS OF THE LECTURE ARE:
> Overall Planning Process
> Levels of goals and plans
> MBO
> Strategic Management
> Strategic Management Process
> Levels of strategies
> SWOT Analysis
> Porter’s five competitive forces model
> Types of Corporate strategies
Strategic Management is the core course in MBA according to HEC recommended syllabus in Minhaj University, Lahore. and other HEC recognized Universities.
It is obvious that the concept of strategy has changed greatly over the past five decades. An understanding of the changes in the way corporates consider strategy may help you craft organizational strategies that would give you a competitive advantage and develop strategies which would relevant and sustainable.
tbiConsulting brings this presentation to you with an aim to introduce the various concepts of strategy in the past half century. We address our gratitude to Mr. Robert M. Grant, Author of Contemporary Strategy Analysis, which the content is actually adapted from.
Strategy success is measured by its execution. In spite of the importance of strategy there are too many factors that are barriers to success. This presentation is focus on structural, organizational and personal factors that can impact the success of strategy implementation
Chapter 08 Strategy Formulation and ImplementationRayman Soe
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
INTRODUCTION TO MANAGEMENT
PRINCIPLES OF MANAGEMENT
PPT OF THE BOOK
Kathryn M. Bartol,
David C. Martin,
Management (latest edition),
MAIN TOPICS OF THE LECTURE ARE:
> Overall Planning Process
> Levels of goals and plans
> MBO
> Strategic Management
> Strategic Management Process
> Levels of strategies
> SWOT Analysis
> Porter’s five competitive forces model
> Types of Corporate strategies
Strategic Management is the core course in MBA according to HEC recommended syllabus in Minhaj University, Lahore. and other HEC recognized Universities.
It is obvious that the concept of strategy has changed greatly over the past five decades. An understanding of the changes in the way corporates consider strategy may help you craft organizational strategies that would give you a competitive advantage and develop strategies which would relevant and sustainable.
tbiConsulting brings this presentation to you with an aim to introduce the various concepts of strategy in the past half century. We address our gratitude to Mr. Robert M. Grant, Author of Contemporary Strategy Analysis, which the content is actually adapted from.
Strategy success is measured by its execution. In spite of the importance of strategy there are too many factors that are barriers to success. This presentation is focus on structural, organizational and personal factors that can impact the success of strategy implementation
Chapter 08 Strategy Formulation and ImplementationRayman Soe
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
General Motor Strategic Management AnalysisRashid Javed
Best report of Strategic Management . We apply these tools strategic formulation, implantation and evaluation on general motor very effectively. we hope u will got help from this report. .
In this lesson you learned about the three generic strategies that every business employs. You learned that a low-cost strategy competes on price whilst a differentiation strategy competes on uniqueness and focus strategy aims at servicing a market niche.
Organization and Management Guide,Chapter 8 Strategic Management by Stephen Robbins and Mary Coulter Management Book 12th Edition, Pearson Publication.
STRATEGIC MANAGEMENT
Module 3 CORPORATE LEVEL STRATEGIES
By Jayanti Pande
RTMNU Nagpur university MBA Sem 3
Free Notes By Jayanti Pande
#JRPNotes
#JayantiPandeNotes
MBA Free notes pdf download
JRP Notes pdf
Free JRP notes
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
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when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
1. CHAPTER 4: PLANNING
PART 2: STATEGY FORMULATION
AND IMPLEMENTATION
Lecturer: Duong Thi Hoai Nhung (MBA)
Faculty of Business Administration
Foreign Trade University
Email: nhungdth@ftu.edu.vn
Mobile: 0985 867 488
2. Learning objectives
• Define the component of strategic management
• Describe the strategic planning process and
SWOT analysis
• Define corporate-level strategies and explain
the portfolio approach- the BCG matrix
• Describe business- level strategies, including
Porter’s competitive forces and strategies, and
cooperative strategies
• Explain the major considerations in formulating
functional- level strategies
3. OUTLINE
1. What is strategic management?
2. Level of strategy
3. Strategy formulation
a. Formulating Corporate-level strategy
b. Formulating Business-level strategy
c. Formulating Functional-level strategy
4. The strategic planning process
4. Common elements in successful strategies
Simple,
consistent,
long-term goals
Profound
understanding of
competitive
environment
Objective
appraisal of
resources
Successful
strategy
EFFECTIVE IMPLEMENTATION
Source: Robert M. Grant. (2008). Contemporary Strategy Analysis
(6th edition)
5. 1. What is strategic management?
• Strategic management is the set of decisions and
actions used to formulate and implement environment so
as to achieve organizational goals.
• Why Strategic Management is Important?
1. It results in higher organizational performance.
2. It requires that managers examine and adapt to
business environment changes.
3. It coordinates diverse organizational units, helping them
focus on organizational goals.
4. It is very much involved in the managerial decision-
making process.
6. 2. Level of strategy
Corporation
Corporate-level strategy:
‘What business are we in?’
Chemicals unitTextiles unit
HRMR&DFinance
Business- level
strategy:
‘How do we compete?’
Functional- level strategy:
‘How do we support the business- level
strategy?’
Auto parts unit
MarketingManufacturing
7. 2. Level of strategy
• Corporate- level strategy
Corporate- level strategy relates to the organization as a
whole and to the combination of business units and
product lines that make up the corporate entity
• Business- level strategy
Business-level strategy relates to each business unit or
product line. It focuses on the way the business unit
competes within its industry for customers
• Functional- level strategy
It relates to the major functions, including finance,
research and development, marketing and
manufacturing
8. Types of Growth Strategies
Growth strategy is when an organization expands the number of markets served
or products offered, either through its current business(es) or through new
business(es).
Concentration focuses on its primary line of business and increases the
number of products offered or markets served in this primary
business.
Vertical
integration
- In backward vertical integration, the organization becomes its
own supplier so it can control its inputs.
- In forward vertical integration, the organization becomes its
own distributor and is able to control its outputs.
company grows by combining with competitors
- Related diversification happens when a company combines
with other companies in different, but related, industries.
- Unrelated diversification is when a company combines with
firms in different and unrelated
industries
Horizontal
integration
Diversification
10. Corporate level strategies
Renewal strategy
When an organization is in trouble, something needs to be
done. Managers need to develop strategies, called
renewal strategies, that address declining performance
Retrenchment strategy
A retrenchment strategy is a short-run renewal strategy
used for minor performance problems. This strategy helps
an organization stabilize operations, revitalize
organizational resources and capabilities, and prepare to
compete once again.
• Turnaround strategy
When an organization’s problems are more serious more
drastic action—the turnaround strategy—is needed.
Manager must to do: cut costs and restructure
organizational operations
11. Corporate level strategies
Stability strategy
Stability, sometimes called a pause strategy, means that
the organization wants to remain the same size or grow
slowly and in a controlled fashion.
Stability
12. 3. Strategy formulation
- Portfolio Analysis is used to formulate Corporate-level
strategy and relates to the mix of business units and product
lines that fit together in a logical way to provide synergy and
competitive advantage for the organization
- Competitive advantage is an advantage over competitors
that cannot easily be imitated, especially advantages that can
be sustained over time Sustainable Competitive Advantage
(SCA)
13. The BCG Matrix
• BCG Matrix
- Developed by the Boston Consulting Group
- Considers market share and industry growth rate
+ Business growth rate relates to how rapidly the entire
industry is increasing.
+ Market share defines whether a business unit has a
larger or smaller share than competitors.
- Classifies firms as:
• Cash cows: low growth rate, high market share
• Stars: high growth rate, high market share
• Question marks: high growth rate, low market
share
• Dogs: low growth rate, low market share
14. The BCG matrix
Stars Question
Marks
DogsCash cows
High Market share of SBU Low
High
Low
Business
growth
rate
15. The BCG matrix
Star: dominant competitive
position in a growing industry
- Recommended strategy=
growth; add resources and
build the business further based
on market projections
Question mark: poor competitive
position in a growing industry
- Recommended strategy= growth
or retrenchment; apply resources
to accomplish positive turnaround
or pull back if outlook poor
Cash cow: dominant position in
low-growth industry
- Recommended strategy=
stability or modest growth;
maintain benefits of strong cash
flow while keeping resource
investment minimum
Dog: poor competitive position in
low-growth industry
- Recommended strategy=
retrenchment; divest, sell,
liquidate the business to eliminate
resource drain
High
High
Low
Low
Business
growth
rate
Market share of SBU products/services
16. 3. Strategy formulation
b. Formulating Business-level strategy
(Competitive strategy)
Formulating Business-level strategy- Porter’s competitive forces and strategies
17. • Threat of New Entrants
– The ease or difficulty with which new competitors can enter
an industry.
• Threat of Substitutes
– The extent to which switching costs and brand loyalty affect
the likelihood of customers adopting substitutes products
and services.
• Bargaining Power of Buyers
– The degree to which buyers have the market strength to
hold sway over and influence competitors in an industry.
• Bargaining Power of Suppliers
– The relative number of buyers to suppliers and threats from
substitutes and new entrants affect the buyer-supplier
relationship.
• Current Rivalry
– Intensity among rivals increases when industry growth
rates slow, demand falls, and product prices descend.
Porter’s competitive forces and strategies
18. Analyzing 5 competitive forces
• Porter’s five forces framework was originally developed as a
way of assessing the attractiveness (profitability) of
different industries. As such it can help in identifying the
sources of competition in an industry or sector.
The five forces framework
• Must be used at the level of strategic business units (and not at
the level of the whole organization)
• Understanding the connections between competitive forces
and the key drivers in the macro-environment is essential
• The five forces are not independent
19. Why does the 5 forces framework determine
industry profitability?
21. Competitive strategies
Differentiation strategy
- Differentiation strategy- the ability of a company or a
business unit to provide a unique or superior value
to the buyer in terms of product quality, special features,
or after sale service.
- The differentiation strategy involves an attempt to
distinguish the firm’s products or services from the
others in the industry.
22. Prentice Hall, Inc. 6-22
Porter’s competitive strategies
Lower cost strategy- the ability of a company or
a business unit to design, produce and market a
comparable product more efficiently than its
competitors.
The organization aggressively seeks efficient facilities,
pursue cost reductions, and use tight cost control
to produce products more effectively than
competitors
24. Prentice Hall, Inc. 6-24
Porter’s competitive strategies
Cost Focus- low-cost competitive strategy that focuses
on a particular buyer group or geographic
market and attempts to serve only this niche to the
exclusion of others
Differentiation Focus- concentrates on a particular
buyer group, product line segment, or geographic
market to serve the needs of a narrow strategic
market more effectively than its competitors
25. Organizational characteristics for Porter’s competitive strategies
Differentiation
- Acts in a flexible, loosely knit way, with strong coordination
among departments.
- Strong capability in basic research
- Creative flair, think ‘out of the box’
- Strong marketing abilities
- Rewards employee innovation
- Corporate reputation for quality or technological leadership
Cost leadership
- Strong central authority, tight cost controls
- Maintain standard operating procedure
- Easy to use manufacturing technologies
- Highly efficient procurement and distribution system
- Close supervision, finite employee empowerment
- Frequent, detailed control reports
Focus
- May use combination of above policies directed at particular
strategic target
- Values and rewards flexibility and customer intimacy
- Measures cost of providing service and maintaining customer
loyalty
- Pushes empowerment to employees with customer contact
26. Issues in Competitive Strategies
? Is it possible for a company or business unit to follow a
cost leadership strategy and a differentiation strategy
simultaneously? Why or why not?
28. c. Formulating functional-level strategy
• Functional- level strategies are the action plan
adopted by major departments to support the
execution of business- level strategy
• Major organizational functions include
o marketing,
o production,
o finance,
o human resources,
o research and development (R&D)
29. 4. The strategic planning process
Scan external
environment:
- National
- Global
Identify strategic
factors:
- Opportunities
- Threats
Evaluate
current:
- Mission
- Goals
Implement strategy
by changes in:
- Leadership/culture
- Structure
- Human resource
- Information & control
system
Formulate
strategy:
- Corporate
- Business
- Functional
Define new:
- Mission
- Goals
Identify
strategic
factors:
- Strengths
- Weaknesses
Scan internal
environment:
- Core competence
- Synergy
- Value creation
SWOT
Source: Danny and Richard L. Daft; 2009, p.302
30. Strategic Planning Process
• Step 1: Identifying the organization’s current
mission, goals, and strategies
– Mission: the firm’s reason for being
• The scope of its products and services
– Goals: the foundation for further planning
• Measurable performance targets
• Step 2: Scanning an external analysis
– The environmental scanning of specific and general
environments
• Focuses on identifying opportunities and threats
31. Strategic Planning Process
• Step 3: Scanning an internal analysis
– Assessing organizational resources, capabilities, and
activities:
• Strengths create value for the customer and
strengthen the competitive position of the firm.
• Weaknesses can place the firm at a competitive
disadvantage.
– Analyzing financial and physical assets is fairly easy,
but assessing intangible assets (employee’s skills,
culture, corporate reputation, and so forth) isn’t as
easy.
• Steps 2 and 3 combined are called a SWOT analysis.
(Strengths, Weaknesses, Opportunities, and Threats
32. Strategic Planning Process
• Step 4: Formulate Strategies
– Develop and evaluate strategic alternatives
– Select appropriate strategies for all levels in the
organization that provide relative advantage over
competitors
– Match organizational strengths to environmental
opportunities
– Correct weaknesses and guard against threats
33. Strategic Planning Process
• Step 5: Implement Strategies
– Implementation: effectively fitting organizational
structure and activities to the environment
– The environment dictates the chosen strategy;
effective strategy implementation requires an
organizational structure matched to its
requirements
• Step 6: Evaluate Results
– How effective have strategies been?
- What adjustments, if any, are necessary
34. Case study 1.1:
Apple’s profitable but risky strategy
Case questions
1. What do you think of Apple’s strategy?
What would you do next if you were
responsible for Apple?
2. What lessons can other companies learn
from Apple’s strategies over the years?
Editor's Notes
Corporate strategies range from diversification into closely related industries--concentric diversification--to diversification into unrelated industries--conglomerate diversification. Corporate strategy identifies a set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities. A concentrationstrategy is employed for an organization that operates a single business and competes in a single industry. A vertical integration strategy involves acquisition or development of new businesses that produce parts or components of the organization’s product. Concentric diversificationadds new businesses that produce related products or are involved in related markets and activities. Conglomerate diversification adds new businesses that produce unrelated products or are involved in unrelated markets and activities.