First things
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Any questions?
Introductions
Session2
MGT 490C Strategic Management
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Strategies
Netflix, Blockbuster, Redbox
"Getting Movies from a store or a mailbox, or just a box" (NYTimes,
August 5, 2006) reading--available through Vista course site for
MGT 490C (BA490C)
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(https://vista.nau.edu)
Path is "Course Content/Readings/Netflix"
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How do the strategies of Netflix, Blockbuster, and Redbox differ?
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Can you identify any of the areas for objectives listed on p. 7 of
H&W that their objectives differ?
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Distinguish each level of the hierarchy of strategy for each
company, e.g., give an example of each level of strategy.
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MGT 490C Strategic Management
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Strategy
Goals
Current
Situation
Strategy
Objectives
Environment
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MGT 490C Strategic Management
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Netflix, Blockbuster, Redbox
Are these objective important to all three?
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Profitability
Efficiency
Growth
Shareholder wealth
Utilization of resources
Reputation
Contributions to employees
Contributions to society
Market leadership
Survival
Personal needs of top management
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MGT 490C Strategic Management
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In what areas do their goals differ?
Area
Profitability
Efficiency
Growth
Stockholder wealth
Utilization of resources
Reputation
Contributions to employees
Contributions to society
Market leadership
Survival
Netflix
Blockbuster
Redbox
Strategy—what is it?
Strategy…a plan for interacting with the competitive
environment to achieve organizational objectives and
goals
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Strategy is a means to goals and objectives.
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Without objectives and goals strategies lack direction.
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Therefore, goals and objectives must be defined, or
reexamined and redefined when formulating strategy.
(adapted from Daft, 2001)
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MGT 490C Strategic Management
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Major elements of strategy
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Strategy formulation—defining long-term
objectives & goals, developing long-range
plans for the effective management of
environmental opportunities and threats,
taking into account strengths and weaknesses
Strategy implementation--Process by which
strategies and policies are put into action
through the development of programs,
budgets, and procedures to achieve
objectives
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MGT 490C Strategic Management
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Strategy—where is its focus?
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Long-term
Encompasses entire organization
External—to determine
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What the firm seeks to be
What it seeks to accomplish (overall goals and objectives)
Opportunities and threats in the environment
The path it will take to succeed within the environment
Internal—to determine
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Capabilities, i.e., strengths and weaknesses
The design of the organization
Supporting functional (organizational)
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Session2
objectives
strategies
plans
MGT 490C Strategic Management
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Strategic management process
Reference Fig. 1.1 & 1.3
 Environmental scanning
 Strategy formulation
 Strategy implementation
 Evaluation and control
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MGT 490C Strategic Management
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Distinguish the three elements of the
hierarchy of strategy for each company.
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Corporate
Business
Functional
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Marketing
Finance
Operations
MGT 490C Strategic Management
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Session 2
Strategic Management
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Any questions?
Strategic management concepts
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Strategy: meaning, perspective, & value
Strategic management process
Levels of strategy
Application of concepts to Netflix,
Blockbuster, & Redbox
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MGT 490C Strategic Management
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Strategy Exercise
Question
Response
Eval.
(A to F)
What is their strategy?
•Who or what do they seek to
be?
•What do they seek to
accomplish?
•How will they pursue their
goals & objectives?
Give an example of each level of strategy
Corporate
Business
Functional
What functional
strategies are key to
success?
What supporting
functional objectives can
you discern or suggest?
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MGT 490C Strategic Management
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Netflix, Blockbuster, Redbox
How do their strategies differ?
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MGT 490C Strategic Management
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Review questions
1.
2.
3.
4.
What is strategic management & why
does it matter?
What are the major steps in the
strategic management process.
Identify the 3 levels of strategy in the
hierarchy of strategy.
What distinguishes each level of
strategy?
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MGT 490C Strategic Management
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