PowerPoint Presentation by Charlie Cook
PowerPoint Presentation by Charlie Cook
The Environment of Managing
The Environment of Managing
Gary Dessler
Gary Dessler
Principles and Practices for Tomorrow’s Leaders
Principles and Practices for Tomorrow’s Leaders
Copyright © 2004 Prentice Hall, Inc. All rights reserved.
Copyright © 2004 Prentice Hall, Inc. All rights reserved.
Technology Strategy (2) Objectives
After studying this chapter and the case exercises at
the end, you should be able to:
1.
Develop a workable strategic plan for an
organization using SWOT analysis.
2.
Identify a company’s current corporate
strategies, and list its strategic options.
3.
Develop a vision and mission statement.
4.
Accurately identify a company’s “core
competence.”
5.
Explain each of the strategic planning tools
Checklist 5.1
The Strategic Management Process
Define the business and its mission.
Perform external and internal audits.
Translate the mission into strategic
goals.
Generate and select strategies to
reach strategic goals.
A Comprehensive Strategic-Management Model
FIGURE 5–1
Examples of Mission Statements
FIGURE 5–2
APEX ELEVATOR
To provide a high-reliability, error-free method for moving people and
products up, down, and sideways within a building.
UNITED TELEPHONE CORPORATION OF DADE
To provide information services in local-exchange and exchange-access
markets within its franchised area, as well as cellular phone and paging
services.
JOSEPHSON DRUG COMPANY, INC.
To provide people with longer lives and higher-quality lives by applying
research efforts to develop new or improved drugs and health-care
products.
GRAY COMPUTER, INC.
To transform how educators work by providing innovative and easy-to-use
multimedia-based computer systems.
APEX ELEVATOR
To provide a high-reliability, error-free method for moving people and
products up, down, and sideways within a building.
UNITED TELEPHONE CORPORATION OF DADE
To provide information services in local-exchange and exchange-access
markets within its franchised area, as well as cellular phone and paging
services.
JOSEPHSON DRUG COMPANY, INC.
To provide people with longer lives and higher-quality lives by applying
research efforts to develop new or improved drugs and health-care
products.
GRAY COMPUTER, INC.
FIGURE 5–3
Strategies in Brief
Source: Arit Gadiesh and James Gilbert, “Frontline Action,” Harvard Business Review, May 2001, p. 74.
COMPANY
STRATEGIC PRINCIPLE
America Online
Consumer connectivity first—anytime, anywhere
Dell
Be direct
eBay
Focus on trading communities
General Electric
Be number one or number two in every
industry in which we compete, or get out
Southwest Airlines
Meet customers’ short-haul travel needs at fares
competitive with the cost of automobile travel
Vanguard
Unmatchable value for the investor-owner
Wal-Mart
Low prices, every day
COMPANY
STRATEGIC PRINCIPLE
America Online
Consumer connectivity first—anytime, anywhere
Dell
Be direct
eBay
Focus on trading communities
General Electric
Be number one or number two in every
industry in which we compete, or get out
Southwest Airlines
Meet customers’ short-haul travel needs at fares
competitive with the cost of automobile travel
Vanguard
Unmatchable value for the investor-owner
Checklist 5.2
How to Test the Quality of Your Strategy
Does your strategy fit with what’s going on in the
environment?
Does your strategy exploit your key resources?
Will competitors have difficulty keeping up with
you?
Are the elements of your strategy internally
consistent?
Do you have enough resources to pursue this
strategy?
FIGURE 5–4
FIGURE 5–5
Forces Driving Industry Competition
FIGURE 5–6
How the Internet
Influences
Industry Structure
FIGURE 7–7
FIGURE 5–8
Checklist 5.3
How to Benchmark
Focus on a specific problem and define it
carefully
Use employees who will actually implement
changes to identify the best-practices
companies and to conduct on-site studies.
Be willing to share information with others.
Avoid sensitive issues such as pricing, and
don’t look for new product information.
FIGURE 5–9
Cineplex
Odeon
TOWS
Matrix
FIGURE 5–10
Checklist 5.4
Scenario Planning Principles
Scenarios inform decision makers and
influence decision making.
Scenarios add value to decision making
only when managers and others use
them.
Checklist 5.4 (cont’d)
Scenario Planning Principles
Alternative projections must challenge
managers’ current mental models.
The consideration of alternative futures
directly affects managers’ knowledge.
Scenarios must include indicators so that
managers can track how the future is
Checklist 5.4
Scenario Planning Principles
Scenarios have value only to the extent that they
inform decision makers and influence decision
making.
Scenarios add value to decision making only
when managers and others use them to
systematically shape questions about the present
and the future, and to guide how to go about
answering them.
In each step of developing scenarios, the
emphasis must be on identifying, challenging,
Checklist 5.4 (cont’d)
Scenario Planning Principles
Alternative projections about a given future must
challenge managers’ current mental models by
creating tension among ideas, hypotheses,
perspectives, and assumptions.
The dialogue and discussion spawned by the
consideration of alternative futures should
directly affect managers’ knowledge.
Scenarios should include enough indicators so
that managers can track how the future is actually
evolving so that the learning and adaptations
FIGURE 5–11
Southwest
Airlines’
Activity
System
