STRATEGIC MANAGEMENT SESSIONS & SEMINARS October 3 & 10 … 2013 Session 1 - 4 Our goal? Learn about & practice all steps of strategic planning process • Choose a company for which to formulate a strategic business plan • Identify / formulate: - mission statement – framework w/in which strategy shall be crafted - corporate vision – where do we want to be in # years - business aims -> specific objectives • Scan the environment – carry out external, internal & industry analysis -> situational analysis -> Internal analysis - core business & competencies, resources available, corp. structure, required inputs, corp. culture => IFAS (Internal Factor Analysis Summary) Our goal? Practice all steps of strategic planning process • Environment scanning cont’d: -> External analysis - PEST(LE) => EFAS (External Factor Analysis Summary) - Industry Analysis (task environment): -> Porter’s Five (Six) forces => Industry Matrix - Situational Analysis – finding a strategic fit b/w external opportunities & internal strengths - mitigating harmful effects of external threats due to internal weaknesses => SFAS (Strategic Factor Analysis Summary) => SWOT analysis Strategic Management Model Existing Existing business model Mission, vision, goals, objectives, corp. values External analysis -> opportunities, threats SWOT => Strategic choice Functional-level strategies Business-level strategies Corporate-level strategies Strategy implementation Internal analysis -> strengths, weaknesses Strategic Management Cycle Strategic management – mgmt for distant horizons • Series of destinations which are coming closer with time for everyone – Where was the company yesterday? (if applicable) – Where is the company now ($, ext. environment, market)? What conditions is it in (internally)? – Where will the company be tomorrow? vs. Where can the company be tomorrow? vs. Where is the company likely to be tomorrow – if we do a, b, c, or nothing at all? • Nothing happens by itself => 1. => What are the business objectives? -> WHERE TO? 2. => What are the best ways to achieve these objectives? -> HOW, WHEN? 3. => What resources are necessary to execute the plan? -> w/WHAT & WHOM Which sector? What company? … your choice • • • • • • • • • • • http://www.top500.de/g0037200.htm http://www.europages.co.uk/ http://www.hbi.cz/index.php?Lang=en http://www.hoovers.com/ http://www.marketresearch.com/ http://www.business.com/ http://www.expats.cz/directory/#482 http://www.rusmarket.com/ http://www.thomasnet.com/ http://no1construction.com/ http://dir.yahoo.com/business_and_economy/directories/companies/ Mission statement • Statement of purpose of existence and operations of a company w/info including: – Why are we here? -> purpose – PAST & NOW and FUTURE – Corp. aims – How do we add value to stakeholders? -> How do we fulfill our mission? The WHY … A B C Mission statement • More specific mission statements may spell out: – What target market we wish to serve? – With what good/service -> product? – How are we unique - w/product, w/how we operate (e.g. environmental friendly) • Problems, questions? Which companies do these mission statements represent? • "To experience the joy of advancing and applying technology for the benefit of the public“ • "To build a place where people can come to find and discover anything they might want to buy online." • "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts. Mission statements Take a wild guess • • • • • BMW vs. Mercedes McDonalds vs. KFC IBM vs. Apple Acer vs. Dell Google vs. Yahoo Mission statements – conclusion? Questions to consider • Why are some mission statements similar? • Why do they look so broad or general? • Would it pay to narrow a mission statement down? Your task • For the company of your choice, formulate a mission statement in your own words based on your current knowledge about the company. • Identify the mission statement based on your research. Vision statement • http://mystrategicplan.com/resources/topic/visionstatements/ • Company image in the future – What it wants to become by a certain point in time -> where it wants to go and how it intends to get there – May also be roughly considered as a framework for strategic planning • The audience? …. Stakeholders & market – Employees – it provides direction and guidelines for their conduct and should be inspirational – Banks – what they may be likely to finance – Shareholders – what projects are likely to bring more $ to them – Consumers / customers – what products to keep an eye for … Corporate vision McDonalds: “… be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.“ Toyota: "To become the most successful and respected lift truck company in the U.S.” Avery Dennison : "To be recognized as the world's best coating and converting company by providing innovative decorating, information transfer and bonding solutions that enable our customers' success.“ - Manufacturing pressure sensitive labeling materials, retail apparel ticketing, graphics imaging media , office products, specialty tapes Corporate vision Your task • Identify the corporate vision for your company • Can be found directly in the vision statement or derived from a mix of information provided by top management. • Will be subject to re-evaluation / reconsideration after SWOT analysis based on EFAS, IFAS, and SFAS are performed