Professional Documents
Culture Documents
Part I
Introduction
What is strategy?
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Strategic Management
Where we are?
Where we want to go? How we can go there?
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A strategy guides action; it addresses how to get from where you are to where you want to be
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Picture adapted with permission from Executive Learning Group, www.elg.net
Definition of Strategy
Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.
Strategy Definition-1
A strategy is a common thread, or invisible logic keeps unique business together. Appropriate strategies lead to high economic performance.
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Michael Porter
Mc Donalds
Gave up on the offer of products 'super size', Enriched the menu with salads and chicken products, Provided more value to its products Trained employees, Increased the number of hours of service and Redesigned its stores to better fit the demands of the youth. In this way, McDonald sought to adapt to the demands of consumers who are becoming more cautious about their spending.
McDonalds
How the example illustrates the definition of strategy on the Strategic Management subject?
Coordination of efforts and actions to create competitive advantage.
Mc Donalds
In 2009 the company added McCafe service. This service, added value to products of McDonald,
By providing high quality beverage and lower prices than competitors like Starbucks.
The firm continues to modernize existing facilities and precedes an expected economic growth with the acquisition of certain real estate in Europe. So McDonald's strategic leaders are engaged in making such decisions that will increase the value of the company in the future.
Strategy-1
We see that companies make important decisions:
A Swiss manufacturer of watches cooperates with a German manufacturer of vehicles (Swach with Mercedes); A large Bank buys a movie blen nj studjo kinemaje;
A missile manufacturer set up communication empire;
Strategy-2
What is the role that people play in determining the orientation of the firm? What is the relationship between rationality and intuition in these choices?
Why changes happen?
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STRATEGJI?
S = STATUS AT PRESENT T = THINK R = RELOOK A = ACT T = THINK AGAIN E = EVALUATE G = GO AHEAD Y = YET TO BE CONSIDERED
Long-Term Planning
Precede growth and solve difficulties
Strategic Planning
Change of strategic orientation and capacity New trends are predicted
Strategic Management
Face surprises, strategic threats and rapid development Planning cycles do not allow coping with rapid changes Real time From 1975
Characteris tics,
Hypothesis
Process Period
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60/70s
1980s
Corporate planning
Adaptive processes (Quinn)
1980s
1980s
1990s
STRATEGIC
Dynamic and changeoriented Mission-oriented Vision for the future, guide for the present Proactive Action-oriented External focus Innovation-creativity Continuous process Based on the options and qualitative indicators Efficiency-oriented
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Why it happens that some businesses are more successful than others?
One argues as follows:
This is because in the world there are three types of people: those making changes, those who expect to occur changes those who are surprised when something happens. ......................... Where do you part?
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Its necessary just to arrive SOMEWHERE adds Lisa thinking that in this way she would better explained her question.
Oh, in this case it is sure that you will do it replies the cat but you have to walk for a long period of time.
(Lewis Carrol)
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Cavalry
Cavalry
Cavalry
Cavalry
A
The position of the two armies when the battle began Cartagenas = Black Romans = grey
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Cavalry
Kavaleria
Kavaleria
Kavaleria
Kavaleria
Kartagjenasit after the Roman cavalry was Roman center surrounded = t zinj Romant = gri destroyed and two African divisions progressed
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Concepts
Walkman
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Examples
PC, IBM
IBM
In 1980 the growth rate of micro-ordinators sector was 70% annually. The firma that were developing fast were: Apple, Tandy, Commodore.
IBM managers decided to enter market. First PC was manufactured in August 1981. IBM, based on strategic tools entered successfully on the market in 1981, delivering 50.000 pieces. In 1985 IBM became nr1 in PC manufacturing.
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SONY
Akio Morita, Sony president, passionate about music and golf, thought to unite these two sling with a walkman
Marketing managers were against the project. With the intervention of Morita, walkman was produced without any market research. In three months he sold 30,000 products and in a year 1 million
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"Know the enemy and know yourself; In 100 battles you will never be in danger
Continues
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There are studied 160 companies, for a 10-year period, 1986-1996. They resulted in four main and 2 auxiliary management practices that lead to success. Success Formula 4 +2
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Companies that do not follow this formula, in 10 years had a 83% sales increase, and assets by 97%
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Delegate authority in lower levels of management, so that decisions will respond to market changes
Continuously improve productivity, at least at a rate double the industry.
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Auxiliary practices
Support talented employees and innovation Support growth through mergers and partnerships and keep executives engaged in business
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Strategic thinking:
Proactive Results or rely on goals Builds priorities A discipline that results in deliberate decisions and rely on information A discipline that results in consideration of the consequences
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The scope of an organisations activities Gaining advantage over competitors Addressing changes in the business environment Building on resources and competences (capability)
Values and expectations of stakeholders which affect operational decisions
Top Management
S B U -s
Products/ Markets
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Corporate Strategy
Determines in what businesses or industries will operate
Functional Strategy
Each SBU has functional areas such as finance, marketing, etc.. Here are created and stored SBU's distinctive competencies
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Vision/strategic intent desired future state Goal general statement of aim or purpose Objective quantification or more precise statement of goal
Strategic capability resources, activities and processes
Exhibit 1.3
Strategic Choices
Bases of competitive advantage at business level Scope of activities at corporate level
Portfolio Market spread, e.g. international Value added by corporate parent (parenting)
Perspective. The views, opinions and preferences of decision-makers are crucial to the future of the organization.
Unrealised strategy
Frequently strategies do not come about in practice
Plans are unworkable Environment changes Influential stakeholders do not agree with plan
Realised strategy
The strategy actually being followed by an organisation in practice
Emergent strategy
Comes about through everyday routines, activities and processes
Strategy Process
PAIN Factors
Development needs
WIN Factors
TODAY We + Environment
A
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Why planning?
Planning performs these functions
Increases profitability Improves decision making Sets objectives
Distributes resources Analyzes courses of action Reduces risk
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Things are going well We are very busy We have not enough time We do not know how to act We do not have enough information As a result of the plan to make changes The plan can criticize the actions of the past The plan may suggest additional costs that we can not afford
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Entrepreneurship
Partnership
management
management
Chaos
Marionette
management
Low Low
management
High
The answers to this question are objectives. How will you go about achieving your desire results? The answer to this you can call strategy.
William E Rothschild
Summary -1
Strategic management is important for you as an individual because you would be working in an organization and you will be rewarded according to your skills to manage strategically.
Strategic management is important to organizations because it significantly affects the performance of the organization; he helps employees know what to do and how to respond to changing situations; he helps coordinate divisions, functions and activities of the organization. However, strategic management can not solve all the problems and challenges of the organization.
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Summary -2
A strategy is a series of decisions and actions oriented towards the goal of the organization, which are in harmony with the resources and capacity of the organization and with the opportunities and threats to the environment.
Strategic management involves those decisions and actions in which members of the organization analyze the current situation; develop appropriate strategies; implement strategies; and evaluate, modify or change strategies if necessary. .
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Summary -3
Strategic management differs from other types of management because it is interdisciplinary, focusing on the external environment, internal environment and the future of the company. The process of strategic management consists of the analysis of the situation, (scanning and evaluation of internal and external environment of the organization), the formulation of strategy (design and selection of the most appropriate strategy), implementation and evaluation.
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Summary-4
In reality, the process of strategic management can not follow all the stages in the order, but all analysis should be performed.
Strategic management has its roots in military strategies, as military units seek to gain advantages over the enemy, firms seek to gain advantages over competitors. All members of the organization play a role in the process of formulating and implementing strategy
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