Strategic Management and Culture Ch. 9 & 4
Outline
A. Strategic Management Process
1) Analysis of Mission & Objectives
2) Values and Organizational Culture
3) Analysis of Resources & Capabilities
4) Analysis of Industry & Environment
B. Organizational Strategies
1) Levels of Strategy
2) Types of Strategic Plans
C. Company Research Presentation in Groups
A. Strategic Management Process
 Basic concepts of strategy
 Strategy: __________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
 Basic concepts of strategy:
 Competitive advantage — operating with an _________________ or set of attributes that allows an
organization to _____________________ its rivals. Example: Walmart (inventory IT)
 Sustainable competitive advantage — one that is ________________________________________
Example: Tim Horton’s (double double, Canadiana, over 2600 shops in Canada)
FOCUS: Figure 9.1 Strategy formulation and implementation in the strategic management process.
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Strategic questions for strategy formulation:
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What is our business __________________________?
Who are our ______________________?
What do our customers consider ______________________?
What have been our __________________________?
What is our __________________?
A1) Analysis of Mission:
 The ________________ for an organization’s existence.
 Good mission statements identify:
Customers Products and/or services Location
Underlying philosophy
 An important _____________ of the mission is how well it serves the _________________________.
Figure 9.2 How external stakeholders can be valued as strategic constituencies of organizations.
A1) Analysis of Objectives:
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Operating objectives direct activities toward key and specific performance results.
Typical operating objectives (fill in using page 232):
 Profitability
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Market share
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Human talent
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Financial health
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Cost efficiency
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Product quality
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Innovation
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Social responsibility
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A2) Analysis of Values and Organizational Culture:
 Values are broad _______________ about what is or is not ______________________________.
 Strong core values for an organization helps build ______________________________________, gives
__________________ to an organization, and it ___________________ the mission statement.
 Organizational culture ___________________ the dominant ______________________________ of the
organization as a whole.
 Organizational Culture Definition: The system of shared beliefs and values that develops within an
organization and guides the behaviour of its members. Sometimes called ____________________________.
 It is the key aspect of any organization and work setting.
 It is “the way we do things here”
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Shapes the ______________ of managers and other organization members.
Points people in common _________________________.
Helps build institutional identity.
Gives character to the organization in the eyes of _________________________________________.
Backs up the mission statement.
Guides the _________________ of organizational members in meaningful and _____________ ways.
Strong cultures:
 _________________ members to do things that are in the best interests of the organization.
 _____________________ dysfunctional work behaviour.
 Encourage ________________________________________________________________________.
The best organizations have strong cultures that:
 Are ____________________________________.
 Emphasize ___________________.
 _____________ for risk taking.
 Encourage _________________________.
 Value the _______________________________.
2 Levels of Organizational Culture
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___________ Culture - Underlying assumptions and
beliefs that influence behaviour and contribute to the
observable culture.
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_______________________ Culture - What one sees
and hears when walking around an organization.
 Figure 4.4 p. 101 Levels of Organizational Culture
Observable Culture and Core Culture.
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What is observable culture?
 What one sees and hears when walking around an organization.
 Elements of observable culture:
 _________________ – tales of events conveying core values
 __________________ – people (past & Present) who display core values
 ___________________________ – celebration of people and events that display core values
 ____________________ – language or symbols conveying core values
What is the core culture?
 Underlying assumptions and beliefs that influence behaviour & contribute to the observable culture.
 Core culture and values:
 Strong cultures have a _______________________________________________________________.
 ____________________________ to core values is a key to long-term success.
 Important cultural values include:
 Performance excellence
 __________________
 Worker involvement
 Innovation
 _____________________
 Integrity
 _________________________
Figure 9.3 p. 233 SWOT analysis of strengths, weaknesses, opportunities, and threats.
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A3) Analysis of Organizational Resources & Capabilities: (with Fig 9.3 above)
 INTERNAL analysis of Strengths and Weaknesses
 Important goal of assessing core competencies.
 Potential core competencies:
 Special knowledge or expertise.
 _________________________________________________
 Efficient manufacturing approaches.
 ____________________________________________________________________.
A4) Analysis of Industry and Environment: (with Fig 9.3 above)
 EXTERNAL analysis of Opportunities and Threats
 Assessment of macro environment:
 Technology.
 ___________________________.
 Social structures & population
demographics.
 ____________________________
 Natural environment.
 Analysis of industry environment:
 Resource suppliers.
 ______________________.
 ______________________.
Figure 9.4 Porter’s model of five strategic forces affecting industry competition. Strategic forces to be
_____________________ in conducting an industry analysis.
___________________________________, New entrants, ____________________, Buyers,
________________________________. Helps determine if the industry is ____________________ or
______________________.
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