Recommended
More Related Content
What's hot
What's hot (20)
Similar to Strategic management
Similar to Strategic management (20)
Recently uploaded
Recently uploaded (20)
Strategic management
- 1. Strategic planning &management By Dr. Raafat Youssef Shehata
- 2. Table of contents • Vision • Environmental scanning • Strategy formulation • Strategy implementation • Strategy evaluation
- 3. STRATEGIC MANAGEMENT & BUSINESS POLICY 11TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER
- 4. Ch 1 -4 Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives Strategic Management –Defined
- 5. Planning horizons • Short • Medium • Long
- 7. Strategic Management Model Performance Actual Results Evaluation & Control Programs Budget Procedures Activities needed to accomplish a plan Cost of the programs Sequences of steps needed to do the job Objectives Strategies What results to accomplish when Plan to achieve mission & objectives Broad guidelines for decision making Mission Reasons for existence Environmental Scanning Policies Country Analysis: PEST Forces Industry Analysis: Porter 5 Forces Internal Company Analysis: Value Chain External Strategy Formulation Strategy Implementation Feedback Learning VISON 7
- 8. Ways of classifying organizations 1-Size : Small/ medium(SMEs) or large (LSEs). 2-Legal status : Sole trader, partnership, limited & public limited holding company / group . 3-Ownership : Private, public & public private 8
- 9. 4-Profit : profit oriented & non profit oriented 5-Activity : Supplier, manufacturer and distributor Ways of classifying organizations 9
- 10. Strategic Management Model Performance Actual Results Evaluation & Control Programs Budget Procedures Activities needed to accomplish a plan Cost of the programs Sequences of steps needed to do the job Objectives Strategies What results to accomplish when Plan to achieve mission & objectives Broad guidelines for decision making Mission Reasons for existence Environmental Scanning Policies Country Analysis: PEST Forces Industry Analysis: Porter 5 Forces Internal Company Analysis: Value Chain External Strategy Formulation Strategy Implementation Feedback Learning VISON 10
- 11. Monitoring, evaluation, and disseminating information from external and internal environments –to key people in the firm I-Environmental Scanning
- 12. The importance of information in formulating a company strategy
- 14. How you capitalize on them How you avoid them How maximize them How minimize their effects Strengths Weaknesses Opportunities Threats Internal External SWOT Analysis
- 16. Converting a weakness into a strength Jim Carry -At the age of 12……. Tourette syndrome -Became a superstar
- 17. Country Analysis – PEST Economic Forces •GDP •Interest Rates •Money Supply •Inflation rate •Unemployment Level •Wages •Price control •Devaluation •Reevaluation •Energy costs and availability •Disposal income Technological Forces •Government Spending on R&D •Industry Spending on R&D •Patent protection •Telecom infrastructure •Internet availability •Availability of certain Technology need to improve productivity Political-Legal Forces •Anti-trust regulations •Tax laws •Attitude toward foreign companies •Employment laws •Stability of government •Foreign trade laws •Customs regulations Socio-Cultural Forces •Life Style changes •Population growth rate •Age distribution •Life expectancies •Birth rate •Mortality rate •Religious orientation
- 18. Industry Analysis Porter’s 5-Forces Rivalry among Competition Bargaining Power Of Suppliers Entry barriers Bargaining Power Of Buyers Threat of Substitute
- 19. Value Chain Analysis Value Chain: Set of value-added activities begins with basic raw material sourcing and ending with handling the product to the consumer Center of Gravity: The part of the value chain where the company has its greatest expertise and capabilities.
- 20. Firm Infrastructure (general management, accounting, finance, strategic planning) Human Resource Management (recruiting, training, development) Technology Development (R&D, product and process improvement) Procurement (purchasing of raw material, machines and supplies) Inbound Logistics (raw material Handling and Warehousing) Operations (machining, Assembling, Testing) Outbound Logistics (warehousing, distribution Of finished goods) Marketing And Sales (Ads, promotion Pricing, Channel ) Services (insulation, Repair, Parts) Company - Value Chain Analysis Profit Margin Support Activities Primary Activities
- 22. Systems • ERP • CRM • RFID
- 23. Span of control 1. Complete evaluation 2. Hire freeze 3. Early retirement 4. Consultant 5. Expansion
- 24. BCG Matrix
- 27. Financial documents • Income statements • Balance sheet • Cash flow statement
- 28. Sales COGS ----------------- Gross Profit Expenses ----------------- EBIT Interest ---------------- EBT Taxes -------------- Net Profit Preferred share -------------------------------- Net Distributable Profit للتوزيع القابل الربح صافى Dividends ----------------------------- Retained Earning - - - - - - Income Statement P&L
- 33. Strategic Management Model Performance Actual Results Evaluation & Control Programs Budget Procedures Activities needed to accomplish a plan Cost of the programs Sequences of steps needed to do the job Objectives Strategies What results to accomplish when Plan to achieve mission & objectives Broad guidelines for decision making Mission Reasons for existence Environmental Scanning Policies Country Analysis: PEST Forces Industry Analysis: Porter 5 Forces Internal Company Analysis: Value Chain External Strategy Formulation Strategy Implementation Feedback Learning VISON 35
- 34. “What do we want to become?” Vision
- 35. Vision/ Saudi German hospital To be the Regional Healthcare leader through the largest network of hospitals delivering excellence in quality of care to patients, and creating value for all stakeholders.
- 36. • Answers the question: – “What is our business?” Mission Statement
- 37. CIA Mission: We are the eyes and ears of the nation and at times its hidden hand. We accomplish this by collecting intelligence that matters, providing relevant, timely, and objective all-source analysis, and conducting covert action at the direction of the president to avoid threats or achieve United states policy objectives. Mission Statement Examples
- 38. 57357 Hospital The Foundation of Children's Cancer Hospital plan is to provide effective administrative, financial, and meaningful aids to ensure and guarantee the survival of children's cancer hospital in a leadership position for the provision of health care for children of cancer patients in Egypt and the Middle East and Africa. Mission Statement Examples
- 41. Types of objectives • Marketing objectives • Financial objectives • Operational objectives
- 42. Objectives should be SMART • Specific • Measurable • Achievable • Realistic • Timed
- 43. Objective / example To increase the profit margin of company X from 25% to 30% by the end of 2020
- 44. Organic versus inorganic growth
- 45. Organic growth is the process of business expansion by increased output, customer base expansion, or new product development, as opposed to mergers and acquisitions, which is inorganic growth. Organic versus inorganic growth
- 46. Strategy
- 48. Types of Strategies Intensive Strategies Market Penetration Market Development Product Development
- 51. Other strategies
- 52. Michael Porter’s Generic Strategies Cost Leadership Strategies (Low-Cost & Best-Value) Differentiation Strategies Focus Strategies (Low-Cost Focus & Best-Value Focus)
- 53. Red versus blue ocean strategies
- 55. The Profit and Growth Consequences of Blue Oceans 39% 62% 86% 61% 38% 14% Profit Impact revenue impact Business Launch Launches With Red Oceans Launches With Blue Oceans
- 57. Four Actions: Eliminate/Reduce/Raise/Create • Which of the factors that the industry takes for granted should be eliminated? • Which should be reduced? • Which should be raised well above standard? • Which factors should be created that have not existed before?
- 58. Four Actions Framework: Key to Value Curve Reduce What factors should be reduced well below the industry standard? Raise What factors should be raised well above the industry standard? The key to discovering a new value curve lies in answering four basic questions Creating new markets: A new value curve Eliminate What factors that the industry has taken for granted should be eliminated? Create/Add What factors that the industry has never offered should be created or added? Cirque du Soleil example
- 62. Tactics(action plan) No. Action Date Budget Responsible Accountable Consulted Informed Status Outcome KPIs Notes Status Planned On progress Completed Pending Cancelled Postponed
- 64. Strategy evaluation and control
- 65. Strategic Management Model Performance Actual Results Evaluation & Control Programs Budget Procedures Activities needed to accomplish a plan Cost of the programs Sequences of steps needed to do the job Objectives Strategies What results to accomplish when Plan to achieve mission & objectives Broad guidelines for decision making Mission Reasons for existence Environmental Scanning Policies Country Analysis: PEST Forces Industry Analysis: Porter 5 Forces Internal Company Analysis: Value Chain External Strategy Formulation Strategy Implementation Feedback Learning VISON 67
- 66. The Management Cycle Needs Assessment Operating plans and budgets Project management Performance Measurement
- 67. 69 EXAMPLES OF “KEY RESULT” AREAS • Customer • Product/service • Public/society/natural environment • Marketing • Human Resources • Production • Maintenance • Operations • Finance • Good measurement systems don’t just measure things done according to the organizational chart. Good systems measure things done to satisfy stakeholders.
- 68. Definition of an Indicator Specific information that provides evidence about the achievement of planned impacts, results and activities Ideally indicators should be reported quantitatively but this will not always be possible - don’t limit M&E to only what can be measured
- 69. What is a Key Performance Indicator • Gives a good indication of performance • Commonly used in business • Metrics to define and measure business goals • Examples: – GNP (Gross National Product) – ARPU (Average Revenue Per User) – Dow Jones Index
- 70. Types of indicators • Indicators are either qualitative or quantitative criteria used to check whether planned changes have taken place as intended. • They (indicators) are designed to provide a standard against which to measure or assess or even show the success or progress of a programme against stated targets
- 71. Types of indicators • Quantitative indicators – Should be reported in terms of a specific number (number, mean, or median) or percentage. – Assessing the significance of an outcome requires data on both number and percent. • Qualitative indicators – Qualitative statements – Measure perceptions – Measure attitude, behavior
- 72. Quantitative indicators Examples • Number of • Proportion of • Percentage of • Amount of • The ratio of • Length of distance • Weight of • Size of • Areas of/spread of • Value of • etc.
- 73. Qualitative Indicators Examples • Level of • Presence of • Evidence of • Availability of • Quality of • Accessibility of • Existence of • Sustainability of • Improvement of • Ability to (e.g. skills) • Potential of • etc.
- 80. Thank You