Strategic Management
Introduction
Strategy
Choice of objectives
Formulation of policy
Attainment of objectives
All depend on many variables, and
Are valid for one organization
Objectives in Knowledge
Concepts
Situations
Literature
Objectives in Attitudes
Generalist Orientation
Practitioner Orientation
Professional Orientation
Innovative Manager
Objectives in Skills
Analytical ability
Strategic analysis
Making analysis effective
General management skills
Universal need for strategic policy skills
Strategic Management Tasks
Form a Strategic Vision
Convert to Measurable Objectives
Craft a Strategic Plan
Implement the Plan
Evaluate the Results
Crafting a Strategy
Proactive and Reactive
Strategy and Entrepreneurship
Evolution
Strategy and Planning
Implementation and Execution
Strategy Making Tasks:
Form a Strategic Vision
What is the Business?
Customer Needs
Customer Groups
Technologies and Functions
Broad vs. Narrow Definition
Communicate the Vision
Decide When to Change
Mission Statement
Describes the raison d’être
Purpose of the organization
Primary objectives
Defines the key measures of success
Prime audience
Leadership team
Stockholders
Older Mission Statements
“Beat Coke”
PEPSI
"We will crush, squash, and slaughter
Yamaha"
HONDA
"Crush Reebok“
NIKE
Older Mission Statements
"To give ordinary folk the chance to buy
the same thing as rich people.“
WAL-MART
"To give unlimited opportunity to
women.“
MARY KAY COSMETICS
"To solve unsolved problems
innovatively“
3M
Vision Statement
Also defines the organization’s purpose
and values
For employees:
Gives direction how they are to behave
Inspires them to give their best
For customers:
Shapes understanding of organization
Provides a reason to interact
Modern Mission Statements
"To preserve and improve human life."
Corporate social responsibility
Unequivocal excellence in all aspects of the
company
Science-based innovation
Honesty & integrity
Profit, but profit from work that benefits
humanity
MERCK
Modern Mission Statements
"To make people happy."
No cynicism
Nurturing and promulgation of "wholesome
American values"
Creativity, dreams and imagination
Fanatical attention to consistency and detail
Preservation and control of the … "magic“
WALT DISNEY COMPANY
Values Statement
Represent the core priorities in the
organization’s culture
Increasingly important in strategic
planning
Often drive the intent and direction for
planners
Incorporate into the strategic plan
actions to align actual behavior with
preferred behaviors
Modern Mission Statements
“To provide an academically rich,
multicultural learning experience that
prepares all its students to realize their
goals, pursue meaningful lifework, and
to be socially responsible contributors to
their communities, locally and globally.”
Which Organization?
Strategy Making Tasks:
Convert to Measurable Objectives
Strategic vs. Financial
Long-range vs. Short-term
Challenging but Achievable Test
What Will Conditions Allow?
What Results Indicate Success?
What Is the Capability with a Push?
Strategic Intent
Strategy Making Tasks:
Craft a Strategic Plan
Objectives at All Management Levels
Corporate Strategy
Business Strategy
Functional Strategy
Operating Strategy
Uniting the Strategy Making Effort
Top-down Process
Factors that Influence Strategy
Industry Attractiveness
SWOT
Beliefs and Ambitions of Managers
Company Culture
Societal and Political Influences
Regulatory and Legislative Actions
Strategy Making Approaches
Board of Directors
Approaches
Chief Architect
Delegation
Collaborative
Corporate Intrapreneur
Comparing Approaches
Tests of a Winning Strategy
Goodness of Fit
Competitive Advantage
Performance