Case Study1

Dell Computer

Introduction
1-1

Case Study2

2001

Compaq 1.5%
Apple 0%
Gateway 0%
Dell 26%

Dell Computer
(B to C)
(B to B)
Introduction
1-2


(strategy)

(strategic management
process)
The process by which managers choose a set of

strategies for the enterprise to pursue its vision.

Introduction
1-3

Introduction
1-4

SWOT

Introduction
1-5

(Mission and Goals)

(Mission)
Sets out why the organization

exists and what it should be doing.

(Major goals)
Specify what the organization hopes

to fulfill in the medium to long term.

(Secondary goals)
Are objectives to be attained that lead to

superior performance.
Introduction
1-6

(Mission Statement)
A formal commitment to stakeholders
that the firms strategy incorporates and
recognizes their claims on the organization.
Mission statement elements:
A declaration of the overall vision, or mission.
A summation of managerial philosophical values.

An articulation of key organizational goals.

Introduction
1-7



http://www.7-11.com.tw

Introduction
1-8


Boeing

Intel

Kodak

Introduction
1-9


( vs.
)

Introduction
1-10


(strategic intent)
(business definition)

Introduction
1-11


5% vs.

Introduction
1-12

Jack Welsh

Introduction
1-13


Provides a sense of direction and purpose.
Drives strategic decision making
and resource allocations.
Forces the seeking of significant
performance improvements to attain
goals.

Introduction
1-14

Introduction
1-15

Customer Orientation and Business

Definition (Derek F. Abell)

Abells Framework
for Defining the
Business
Consumer-oriented

versus
Product-oriented
business definition

Introduction
1-16

MONT BLANC

Introduction
1-17


Smith Corona
()1996

IBM

Kodak

7-11
vs.
Introduction
1-18

1
vs. ?
vs.

?
?

Introduction
1-19


KTV

Introduction
1-20

(content)

(important)
(intensity)
(how important it is)

Introduction
1-21

Introduction
1-22


vs. 10
vs. 1

Introduction
1-23

1
Johnson & Johnsons credo
sets its responsibilities to:
1.
2.

3.
4.

J&J product users.

J&J employees.
Communities in which J&J
employees live and work.
J&J stockholders.
www.jnj.com

Introduction
Source: Courtesy of Johnson & Johnson. 1-24

2

1982ChicagoTylenol

Introduction
Source: Courtesy of Johnson & Johnson. 1-25

Introduction
1-26



www.shu.edu.tw

Introduction
1-27

(Goals)1
Meaning

Good goal characteristics:

Precise and measurable
Address important issues
Challenging but realistic
Time period specified

Introduction
1-28

(Goals)2
The overriding organizational goal:
Maximizing shareholder returns.

Firms need both short- and long-term

goals.

Introduction
1-29

Introduction
1-30


(societal goals)

(system goals)

Introduction
1-31

 vs. 1

Introduction
1-32

 vs. 2

(Robert H. Hayes and William J.

Abernathy, 1980)

Introduction
1-33

Introduction
1-34

(External Analysis)
Identify strategic opportunities and
threats in the operating environment.

Immediate (Industry)

Macroenvironment

National

Introduction
1-35

Introduction
1-36

(Internal Analysis)
Identify strengths
Quality and quantity of resources available
Distinctive competencies

Identify weaknesses
Inadequate resources
Managerial and

organizational deficiencies

Introduction
1-37

SWOT and Strategic Choice

Strengths and Weaknesses

Opportunities and Threats
(SWOT Analysis)

Strategic Choice
Functional
Business
Global
Corporate
Introduction
1-38


(Functional-Level Strategies)
Focus is on improving the effectiveness of
operations within a company.
Manufacturing
Marketing
Materials management
Research and development
Human resources

Introduction
1-39


3000300()
()
E-learning()
()

Introduction
1-40


(Business-Level Strategies)
Cost leadership()
Attaining, then using the lowest total cost basis

as a competitive advantage.

Differentiation()
Using product features or services to

distinguish the firms offerings from its

competitors.

Market niche focus()

Concentrating competitively on

a specific market segment.

Introduction
1-41


()
***(
)
()
()
()
()
**()
Introduction
1-42


(Global-Level Strategies)
Multidomestic()
International()
Global()
Transnational()

Introduction
1-43



Pizza

Introduction
1-44

()
Corporate-Level Strategies
Vertical integration()
Diversification()
Strategic alliances()
Acquisitions()
New ventures()
Business portfolio restructuring(
)
Introduction
1-45

 www.7-11.com.tw

()

21.

()
()
()

()
()
()
()

()
(POS

)
()
(
)

Introduction
1-46

(Strategy Implementation)
Designing organizational structure
Designing control systems
Market and output controls
Bureaucratic controls
Control through organizational culture
Rewards and incentives

Matching strategy, structure,

and controls
Congruence (fit) among strategy,

structure, and controls

Managing Strategic Change

Introduction
1-47


(Managing Strategic Change)
The only constant is change.
Success requires adapting strategy and
structure to a changing world.
The feedback loop in
Corporate
strategic planning.
Operational

Business

Functional
Introduction
1-48


Strategy making in an unpredictable world
Creates the necessity for flexible strategic approaches.

Strategy making by lower-level managers

Strategy evolves through autonomous action.

Serendipity and strategy

Accidental discoveries and happenstances can have

dramatic effects on strategic direction.

Intended and emergent strategies

Realized strategies are combinations of intended and

emergent strategies.
Introduction
1-49


(intended strategy)

(emergent strategy)

Introduction
1-50


SARS
3MScotch Guard
3M
Honda

Introduction
1-51


Microsoft

Introduction
1-52

(Intended Strategies)
(Emergent Strategies)

Introduction
1-53

Introduction
1-54


Planning under uncertainty
Scenario planning for dynamic environmental

change

Ivory tower planning

Lack of contact with operational realities
The importance of involving operating managers

Procedural justice in the decision-making process

Planning for the present vs. Strategic Intent

Recognition of the static nature of the strategic fit

model
Strategic intent in focusing the organization on
winning by achieving stretch goals
Introduction

1-55

Procedural Justice
Meaning
The extent to which the dynamics of a decision-making process

are judged to be fair.

Criteria
Engagement
means involving individuals in the decision-making process, both
by asking them for their input and by allowing them to refute the
merits of one anothers ideas and assumptions.
Explanation
means that everyone involved and affected should be told the
underlying rationale for strategic decisions, and explanations
should be given as to why the ideas and inputs of individuals may
have been overridden in reaching a decision.
Expectations
requires that before, during, and after strategic decisions are
made managers have a solid understanding of what is expected of
them and what the new rules of the game are.
Introduction
1-56



General Electric
()
General Electric
(
)

()
vs.
Introduction
1-57


Royal Dutch Shell
Duke Energy

Introduction
1-58

(Strategic Managers)
General managers
Responsible for the overall (strategic)

performance and health of the total organization.

Operations managers
Responsible for specific business

functions or operations.

Introduction
1-59

Strategic Managers for All Levels

Introduction
1-60






(
)

Introduction
1-61

Introduction
1-62

Introduction
1-63

Introduction
1-64

(Strategic Leadership)
Meaning

Key characteristics of good leaders

Vision, eloquence, and consistency
Commitment to the vision
Being well informed

Willingness to delegate and empower

Astute use of power
Emotional intelligence
Introduction
1-65

1
John F. Kennedy

?(Ask not what your country can do

for you; ask what you can do for your country.)

Martin Luther King, Jr.

(I Have a Dream.)

Introduction
1-66

2
Ken Iverson (CEO of Nucor company)
Fortune 500

Sam Walton (Wal-Mart)

Introduction
1-67

(emotional intelligence; EI)

(Daniel Goldman)

(self-awareness)

(self-management)

(self-motivation)

(empathy)
(social skills)

Introduction
1-68


Cognitive biases systematically influence
the rationality of decision makers.

Introduction
1-69


vs. ()
(
)
vs. ()
50 vs. 326150
()

()
()
Introduction
1-70


vs.

Introduction
1-71

(groupthink)

Introduction
1-72

Introduction
1-73

Introduction
1-74

(groupshift)

(
)

Introduction
1-75

Techniques for Improving Decision

Making
Two decisionmaking
processes
that counteract
cognitive biases
and groupthink.

Introduction
1-76

Introduction
1-77

Case StudySouthwest Airlines1

1978199329

1990199271

Southwest Airlines
19921.05




Introduction
1-78

Case StudySouthwest Airlines2

15

()

Introduction
1-79