Strategic Management

Introduction

Strategy

Choice of objectivesFormulation of policyAttainment of objectives

All depend on many variables, andAre valid for one organization

Objectives in Knowledge

ConceptsSituationsLiterature

Objectives in Attitudes

Generalist OrientationPractitioner OrientationProfessional OrientationInnovative Manager

Objectives in Skills

Analytical abilityStrategic analysisMaking analysis effectiveGeneral management skillsUniversal need for strategic policy skills

Strategic Management Tasks

Form a Strategic VisionConvert to Measurable ObjectivesCraft a Strategic PlanImplement the PlanEvaluate the Results

Crafting a Strategy

Proactive and ReactiveStrategy and EntrepreneurshipEvolutionStrategy and PlanningImplementation and Execution

Strategy Making Tasks: Form a Strategic Vision

What is the Business?Customer NeedsCustomer GroupsTechnologies and FunctionsBroad vs. Narrow Definition

Communicate the VisionDecide When to Change

Mission Statement

Describes the raison d’êtrePurpose of the organizationPrimary objectives

Defines the key measures of successPrime audience

Leadership teamStockholders

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 valuesFor employees:

Gives direction how they are to behaveInspires them to give their best

For customers:Shapes understanding of organizationProvides a reason to interact

Modern Mission Statements"To preserve and improve human life."

Corporate social responsibilityUnequivocal excellence in all aspects of the companyScience-based innovationHonesty & integrityProfit, but profit from work that benefits humanity

MERCK

Modern Mission Statements"To make people happy."

No cynicismNurturing and promulgation of "wholesome American values"Creativity, dreams and imaginationFanatical attention to consistency and detailPreservation 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. FinancialLong-range vs. Short-termChallenging 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 StrategyBusiness StrategyFunctional StrategyOperating Strategy

Uniting the Strategy Making EffortTop-down Process

Factors that Influence Strategy

Industry AttractivenessSWOTBeliefs and Ambitions of ManagersCompany CultureSocietal and Political InfluencesRegulatory and Legislative Actions

Strategy Making Approaches

Board of DirectorsApproaches

Chief ArchitectDelegationCollaborativeCorporate Intrapreneur

Comparing Approaches

Tests of a Winning Strategy

Goodness of FitCompetitive AdvantagePerformance