Professional Documents
Culture Documents
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
Stragetic Management
A capstone subject
It enhance your understanding of business as a
whole
Develops strategic thinking
Prerequisite for becoming a (business) leader
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
Thinking Strategically:
The Three Big Strategic Questions
1. Where are we now?
2. Where do we want to go?
Business(es) to be in and market
serve?
Outcomes to achieve?
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
What Is Strategy?
A companys strategy consists of the set of
competitive moves and business approaches that
management is employing to run the company
Strategy is managements game plan to
Attract and please customers
Stake out a market position
Conduct operations
Compete successfully
Achieve organizational objectives
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
McGraw-Hill/Irwin
To mold the
independent actions
and decisions of
managers and
employees into a
coordinated,
company-wide
game plan
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
Revise as
Needed
McGraw-Hill/Irwin
Task 2
Task 3
Task 4
Task 5
Set
Objectives
Craft a
Strategy
to Achieve
Objectives
Implement
and
Execute
Strategy
Monitor,
Evaluate,
and Take
Corrective
Action
Revise as
Needed
Improve/
Change
Improve/
Change
Recycle
as Needed
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
Capabilities to be developed
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
product and
service offerings
Customer needs
being served
Technological and
business capabilities
McGraw-Hill/Irwin
A strategic vision
concerns a firms future
business path -where we are going
Markets
to be pursued
Future technologyproduct-customer
focus
Kind of company that
management is
trying to create
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
Strategic Objectives
Outcomes focused on
improving financial
performance
Outcomes focused on
improving long-term,
competitive business
position
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
Crafting a Strategy
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
10
Company
Experiences,
Know-how,
Resource
Strengths and
Weaknesses,
and
Competitive
Capabilities
McGraw-Hill/Irwin
gy
e
t
a
r
t
s
d
e
n
o
Aband atures
fe
Planned Stra
t
gy
New initiativ
es plus ong
oing
strategy fea
tures contin
u ed
from prior p
eriods
to
s
n
o
i
t
reac
e
v
i
t
p
ces
n
a
Ada
t
s
m
ircu
c
g
n
i
g
chan
trategy
Actual
Company
Strategy
eS
v
i
t
c
a
e
R
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
11
Pattern
of Actions
That Define
Strategy
How functional
activities are
managed
Efforts to pursue
new opportunities or
defend against threats
Actions to alter
geographic
coverage
Actions to merge or
acquire rival companies
partnerships
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
12
Company Approaches
Reactive/Follower
Proactive/Leader
Rapid
Revolutionary
Change
Aggressively
altering strategy to
make waves and
drive change
Gradual
Evolutionary
Change
Revising strategy
(hopefully in time)
to catch the waves
of change
Anticipating
change and
initiating strategic
actions to ride the
crest of change
Source: Adapted from Derek F. Abell, Competing Today While Preparing for Tomorrow, Sloan Management Review 40, No. 3 (Spring 1999), p. 75.
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
13
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
14
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
15
Characteristics of the
Strategic Management Process
Need to do the five tasks never goes away
Boundaries among the five tasks are blurry
Strategizing is not isolated from other
managerial activities
Time required comes in lumps and spurts
The big challenge: To get the best strategysupportive performance from employees,
perfect current strategy, and improve strategy
execution
McGraw-Hill/Irwin
Copyrigh
2001 by The McGraw-Hill Companies, Inc. All
t
16