this presentation is based on Management in Turbolant Times

1. Jordan University of Science and Tech.
Faculty of Medicine
Department of Public Health
Course: Advanced Health Care
Management
Submitted to:
Dr. Sireen Al-Khaledi

2. Belal Abul-Asal
Quality Coordinator
KAUH

3. NINTENDO
&
SONY

4. 1. Thinking Strategically,
2. The Strategic Management Process,
3. Formulating Corporate-Level Strategy,
4. Formulating Business-Level Strategy,
5. Formulating Functional Level Strategy,
6. Strategy Implementation and Control
OUT LINE

5. Thinking Strategically
Strategic Management:
The set of Decisions and actions used to
formulate and implement strategies that
will provide a competitively superior
fit between the organization and its
environment so as to achieve
organizational goals.
Grand Strategy:
The general plan of major actions by
which an organization intends to
achieve its long-term goals.

6. Grand Strategy Categories:
• Growth
• Stability
• Retrenchment
Thinking Strategically

7. Grand Strategy Categories:
• Growth
• Stability
• Retrenchment
Internally:
New Products, new customers
Externally:
Diversification>> The acquisition
of businesses that are related to
current product line or that take the
corp. into new areas.
Thinking Strategically

8. Grand Strategy Categories:
• Growth
• Stability
• Retrenchment
Thinking Strategically

9. Grand Strategy Categories:
• Growth
• Stability
• Retrenchment
Liquidation
,
Divestiture
,
Downsizing.
Thinking Strategically

10. Thinking Strategically
Global Strategy:
A separate grand strategy includes
decisions and actions about the
corporate deal with the global
operations.
Important to Global Strategy:
Need for National Responsiveness,
Need for Global Integration.

11. Thinking Strategically
NeedforGlobalIntegration
Need for National Responsiveness

12. Thinking Strategically
Export: Selling
domestically produced
products to selected
countries.

13. Thinking Strategically
Globalization: The
standardization of
product design and
advertising strategies
throughout the world.
•Treats world as a
single global market
•Standardizes global
products/advertising
strategies

14. Thinking Strategically
Multi-domestic Strategy:
the modification of
the product design and
advertising strategies
to suit the specific
needs of individual
countries.
adapt product and
promotion for each
country.

15. Thinking Strategically
Transnational Strategy: a
strategy that combines
global coordination to
attain efficiency with
flexibility to meet
specific needs in various
countries.
CATERPILLAR

16. Thinking Strategically
Purpose of Strategy
Strategy is:
The plan of action that prescribes resource
allocation and other activities for...
- Dealing with environment,
- Achieving a competitive advantage, and
- Attaining organizational goals

17. Thinking Strategically
Purpose of Strategy
Competitive advantage means:
What sets the organization apart from the
others and provides it with a
distinctive edge in the market place.
1. Core competence
2. Synergy
3. Value creation

18. Thinking Strategically
Levels of Strategy
What business we are in?
How do we compete?
How do we support the business-level strategy?

19. The Strategic Management Process
Implement
Strategy via
Changes in:
Leadership
culture,
Structure, HR,
Information &
control
systems
SWOT
Formulate
Strategy –
Corporate,
Business,
Functional
Define new
Mission,
Goals, Grand
Strategy
Identify Strategic
Factors –
Strengths,
Weaknesses
Identify
Strategic
Factors –
Opportunities,
Threats
Scan Internal
Environment – Core
Competence,
Synergy, Value
Creation
Evaluate
Current
Mission,
Goals,
Strategies
Scan External
Environment –
National,
Global

20. The Strategic Management Process
Strategy Formulation:
The stage of strategic management that
involves the planning and decision making
that lead to the establishment of the
organization’s goals and of a specific
strategic plan.
Strategy Implementation:
The stage of strategic management that
involves the use of managerial and
organizational tools to direct
resources toward achieving strategic
outcomes.
StrategyformulationVersusimplementation

21. The Strategic Management Process
Situation Analysis:
Analysis of the strengths, weaknesses,
opportunities and threats (SWOT) that
affect the organizational performance.
SituationAnalysis

22. The Strategic Management Process
SituationAnalysis
Management and Organization
Management quality
Staff quality
Degree of centralization
Organization charts
Planning, information,
control systems
Finance
Profit margin
Debt-equity ratio
Inventory ratio
Return on investment
Credit rating
Marketing
Distribution channels
Market share
Advertising efficiency
Customer satisfaction
Product quality
Service reputation
Sales force turnover
Production
Plant location
Machinery obsolescence
Purchasing system
Quality control
Productivity/efficiency
Human Resources
Employee experience,
education
Union status
Turnover, absenteeism
Work satisfaction
Grievances
Research and Development
Basic applied research
Laboratory capabilities
Research programs
New-product innovations
Technology innovations

23. Formulating Corporate-Level str.
Portfolio Strategy:
The organization’s mix of SBUs and product
lines that fit together in such a way as
to provide the corporation with synergy
and competitive advantage.
PortfolioStrategyBCGMatrix
SBU (strategic business units):
A division of the organization that has a
unique business mission, product line,
competitors and markets relative to
other SBUs in the same corporation.

24. Formulating Corporate-Level str.
PortfolioStrategyBCGMatrix

25. System Alert !!!
You do not have access
to this area!!!
For more information,
contact Dr. Ekhlas Saad

26. Formulating Business-Level str.
Business-Level Strategy
Is the result of five competitive forces:
1. Potential new entrance,
2. Bargaining power of buyers,
3. Bargaining power of suppliers,
4. Threat of substitute products,
5. Rivalry among competitors.
Porter’s

27. Formulating Business-Level str.
Porter’s
•Internet reduces
barriers to entry
•Internet expands market size, but
creates new substitution threats
•Internet tends to increase the
bargaining power of suppliers
•Internet shifts greater power
to end consumers
Internet blurs differences among
competitors in an industry
Bargaining
Power of
Buyers
Bargaining Power of Suppliers
Threat of Substitute
Products
Potential New
Entrants
Rivalry
among
Competitors

28. Formulating Business-Level str.
Competitive strategies:
To find its competitive edge within the
mentioned forces, the organization may
choose on direction of the following
strategies:
Differentiation,
Cost leadership,
Focus.
4Ps
Porter’sCompetitivestrategies
Product,
Price,
Place,
Promotion

29. Formulating Business-Level str.
Partnershipstrategy
Organizational Combination
Strategic
Alliances
Preferred Supplier Arrangements
Strategic Business Partnering
Mergers
Acquisitions
Joint Ventures
A Strategic Plan

30. Formulating Functional Level str.
KAUH
Administrative (Services) department

31. Strategy Implementation and
Control
In this rapidly changing environment, it’s
common sense to find a :
Dynamic Approaches to implementing
strategies that are based on :
• Vision,
• Intuition
• Employees Participation

32. Strategy Implementation and
Control
Tips:> for Effective Strategy Implementation:
================================================
 Build commitment to the strategy,
 Pay attention to culture,
 Take advantage of employees’ skills and
knowledge,
 Commmmmunicate.
Manager’sShoptalk

33. Strategy Implementation and
Control
ForPuttingStrategyintoAction
Leadership
• Use Persuasion.
•Motivate Employees
•Shape Culture/Values
Information and Control
Sys.
•Revise Pay
•Change Budget Allocation
•Implement IS
•Apply Rules/Procedures
Human Resources
•Recruitment
•Manage transfers,
promotions, and training
•Direct layoffs/Recall
Structural Design
•Design Org. Chart
•Create Teams
•Determine centralized or
decentralized
•Arrange Facilities/ Task
design
Environment

34. Strategy Implementation and
Control
During turbulent times, ..........
Many managers feel confident that they
found the right formula, but they are
less optimistic about the use and dosage.

35. Strategy Implementation and
Control
Three critical issues for implementing
strategies during turbulent times...
• Global Mindset,
• Corporate Culture, and
• Information technology.
ForPuttingStrategyintoAction

36. Jordan University of Science and Tech.
Faculty of Medicine
Department of Public Health
Course: Advanced Health Care Management
Picture
Not
Available
Belal Abul-Asal
KAUH
Dr. Ekhlas Saad
MOH