STRATEGIC MANAGEMENT
(1) ENVIRONMENTAL SCANNING => STRATEGIC FACTORS
1.1 External: External Factor Analysis Summary (EFAS)
(a) Societal Environment (macro): PEST - Political-legal, Economic, Social-cutural,
Technological
(b) Task Environment (industry): PORTER’S 5 FORCES: fragmented/consolidated:
entrants, suppliers, buyers, substitutes, competition => Info System is changing
these 5
(c ) Strategic groups:
* Scenerio forecasting | multidomestic or global
1.2 Internal: Internal Factor Analysis Summary (IFAS)
Resource-based view: capability | competency: Value | Rareness | Imitability |
Organization (VIRO)
Value chain analysis: primary activities | support activities
* Org structure: simple | functional | divisional
* Corporate culture
(2) STRATEGY FORMULATION/PLANNING
2.1 Vision = become what?
2.2 Mission = what business?
2.3 Goals/objectives: Specific, Measurable, Appropriate, Realistic, Timely
2.4 Strategies: begin with situation analysis: SWOT: SFAS | SWOT/TOWS matrix
Competitive
Porter’s generic competitive
Lower cost
Differentiation
Broad target
Cost leadership Differentiation
Narrow target Cost focus
Focused differentiation
Co-operative
Mutual service consortium
Joint venture
Licensing arrangement
Value-chain partnership
CORPORATE
Directional strategy
Growth
Concentration (current product line/same industry):
Vertical: forward/backward integration (acquisition)
Hozirontal: develop markets/products
Diversification (other product lines/industries)
Concentric: Related industry, Uses the firm’s
competencies and resources, Search is for synergy
Conglomerate: Unrelated industry, Uses the firm’s
financial or managerial assets
Stability
Pause/Proceed with caution strategy: Temporary rest before
continuing a growth or retrenchment strategy
No change strategy
Profit strategy: Artificially support profits when a company’s
sales are declining by reducing investment and expenditure
Retrenchment:
Turnaround strategy: Improvement of operational efficiency
Captive company strategy: Giving up of independence in
exchange for security
Sell-out/Divestment strategy: Selling the entire company to
another firm or selling a division with low growth selling a
division with low growth
Bankruptcy/Liquidation strategy: Giving up management of
the firm to the courts or terminating the firm
Portfolio strategy
BCG Growth-Share Matrix
Growth rate star
?
Cash cow Dogs
Market share
GE Business Screen
Product/Market Evolution Portfolio Matrix: product life cycle
Parenting strategy
Maximizing resource productivity
Developing distinctive competency
Core | Distinctive
* Outsourcing | Tech competence (enhancing/destroying)|
Tech strategy | R&D Strategy | Tech Sourcing | Tech Leader
or follower
BUSINESS/ DIVISION
FUNCTIONAL
2.5 Policies
(3) STRATEGY IMPLEMENTATION = PROCESS
Programs
Budgets
Procedures
Org Structure
(4) EVALUATION AND CONTROL