• No results found

STRATEGIC MANAGEMENT INTRODUCTION NOTES

N/A
N/A
Protected

Academic year: 2021

Share "STRATEGIC MANAGEMENT INTRODUCTION NOTES"

Copied!
7
0
0

Loading.... (view fulltext now)

Full text

(1)

DKD DKD DKD DKD DKD DKD DKD DKD Most battles are won or lost before they

are engaged in; by men who take no part in them; by their strategists.

-- K. von Clausewitz DEEPAK DATTA MBA Spring 2010 STRATEGIC MANAGEMENT INTRODUCTION DKD DKD DKD DKD DKD DKD DKD DKD WHAT IS STRATEGY?

Means of establishing organizational purpose

Definition of the competitive domain

Response to external opportunities and threats and internal strengths and weaknesses

Way to define managerial tasks with corporate, business and functional perspectives

Coherent, unifying and integrative pattern of decisions

Definition of the economic and non-economic

contribution the firm intends to make to stakeholders

Expression of strategic intent

Means to develop organizational core competencies to create sustainable competitive advantage

Study of the functions and responsibilities of general managers; of problems that affect the success of the total enterprise and the decisions that determine the direction of the organization and shape its future.

(2)

DKD DKD DKD DKD DKD DKD DKD DKD

which are required for firms to:

Create and Sustain Competitive Advantage

STRATEGIC MANAGEMENT PROCESS STRATEGIC MANAGEMENT PROCESS

Consists of: : Actions Analysis Decisions DKD DKD DKD DKD DKD DKD DKD DKD PHASE I Pre 1950s PHASE II 1950s PHASE III 1960s-80s PHASE IV Late 1980s+ Financial Planning Forecast based Planning Strategic Planning Integrative Strategic Management EVOLUTION OF STRATEGIC MANAGEMENT

DKD DKD DKD DKD DKD DKD DKD DKD

Chance favors the prepared mind -- Louis Pasteur

Develop “theme” for organization

Provide discipline for long-term thinking

Deal with environmental complexity

More effective resource allocation

Integrate diverse administrative activities

Increase managerial effectiveness

Improve employee motivation

Address stakeholder concerns

(3)

DKD DKD DKD DKD DKD DKD DKD DKD Corporate

What business(es) should we be

in?

Business/Competitive

How should we compete in a

given industry? LEVELS OF STRATEGY DKD DKD DKD DKD DKD DKD DKD DKD RATE OF PROFIT ABOVE THE COMPETITIVE LEVEL How do we make money? INDUSTRY ATTRACTIVENESS Which industries should we be in? CORPORATE STRATEGY COMPETITIVE ADVANTAGE How should we compete? BUSINESS STRATEGY

CORPORATE AND BUSINESS STRATEGY

Corporate

What business(es) should we be in?

Business/Competitive

How should we compete in a given

industry?

Functional

How can business level strategy be

effectively implemented?

How can value be created?

(4)

DKD DKD DKD DKD DKD DKD DKD DKD The Strategic Management Process Mission Goals and Objectives Strategic Competitiveness Strategy Formulation Business-Level

Strategy Corporate-LevelStrategy

International Strategy Strategy Implementation Governance/ Leadership Functional Strategy Orgn. Culture & Innovation External

Environment EnvironmentInternal

Strategy Analysis Organization Design/Control DKD DKD DKD DKD DKD DKD DKD DKD Winning competitive battles through decisions on how to best leverage internal resources, capabilities, and core competencies. Intent/Vision

STRATEGIC INTENT/VISION, MISSION AND STRATEGIC OBJECTIVES

An application of strategic intent/vision in terms of products to be offered and markets to be served. Mission Goals/ Objectives Used to operationalize the mission statement • Measurable • Specific • Appropriate • Realistic • Timely DKD DKD DKD DKD DKD DKD DKD DKD Organizational vision -- what it aspires to be

What distinguishes a given organization Framework for evaluating current and future

activity

Shared organization purpose; establish

organizational culture

Portray organizational priorities Motivate employees

Establish basis for allocating resources MISSION STATEMENT - PURPOSE

(5)

DKD DKD DKD DKD DKD DKD DKD DKD Values and Principles

Explicit statement of values and principles that guide business conduct

Instruments of companies’ external image management process

Influence employees’ motivation, propensity to collaborate, and their own sense of identity

Corporate Social Responsibility

Property conception -- which views the firm as a collection of assets owned by the stockholders Social entity conception – views firms as a community of

individuals sustained and supported by its relationship with environment

MISSION STATEMENT

VALUES AND SOCIAL RESPONSIBILITY

DKD DKD DKD DKD DKD DKD DKD DKD

STAKEHOLDERS

Firm

The firm must maintain

performance at an adequate level in order to maintain the participation of key stakeholders Organizational Employees Managers Non-Managers Capital Market Stock market/Investors Debt suppliers/Banks Product Market Primary Customers Suppliers

STAKEHOLDER INVOLVEMENT

Each of the key stakeholders involved wants a piece of the same pie

1

How do you divide the pie in order to keep all of the stakeholders involved?

2

How do you increase the size of the pie so that there is more to go around?

(6)

DKD DKD DKD DKD DKD DKD DKD DKD

The Industrial Organization Model suggests that above-average returns for any firm are largely determined by characteristics outside the firm.

The I/O model largely focuses on industry structure or attractiveness of the external environment rather than internal characteristics of the firm.

INDUSTRIAL ORGANIZATION (I/O) MODEL

DKD DKD DKD DKD DKD DKD DKD DKD External Environment General Environment Industry / Competitive Environment

I/O MODEL OF SUPERIOR RETURNS

Study the external environment, especially the industry environment Action required: An Attractive Industry An industry whose structural characteristics suggest above-average returns are possible Action required: Locate an industry with high potential for above-average returns. Strategy Formulation Selection of a strategy linked with above-average returns in a particular industry Action required:

Identify strategy called for by the industry to earn above-average returns. DKD DKD DKD DKD DKD DKD DKD DKD

Assets and Skills Assets and skills

required to implement a chosen strategy

I/O MODEL OF SUPERIOR RETURNS

Develop/acquire assets and skills needed to implement the strategy Action required: Strategy Implementation Strategic actions linked with effective implementation of the chosen strategy Action required:

Use the firm’s strengths (its assets or skills) to implement the strategy.

Superior Returns Earning of

above-average returns

Action required:

Maintain selected strategy in order to outperform industry rivals.

(7)

DKD DKD DKD DKD DKD DKD DKD DKD

The Resource-Based Model suggests that above-average returns for any firm are largely determined by characteristics inside the firm.

The Resource-Based Model suggests that above-average returns for any firm are largely determined by characteristics inside the firm.

The Resource-Based view focuses on

developing or obtaining valuable resources and capabilities which are difficult or impossible for rivals to imitate.

The Resource-Based view focuses on

developing or obtaining valuable resources and capabilities which are difficult or impossible for rivals to imitate.

RESOURCE-BASED MODEL

DKD DKD DKD DKD DKD DKD DKD DKD Resources •Inputs to a firm’s production process.

RESOURCE BASED MODEL OF SUPERIOR RETURNS

Identify firm resources. Study strengths and weaknesses relative to rivals.

Action required: Action required:

Determine what firm capabilities allow it to do better than rivals

Action required:

Determine how firm’s resources and capabilities may create competitive advantage. Capability •Capacity for an integrated set of resources to perform a task or activity. Competitive Advantage •Ability of a firm to outperform its rivals . An Attractive Industry •Location of an industry with opportunities that can be exploited by the firm’s capabilities

•.

RESOURCE BASED MODEL OF SUPERIOR RETURNS

Locate an attractive industry

Action required: Action required: Select strategy that best exploits resources and capabilities relative to envtl. opportunities

Action required: Maintain selected strategy in order to outperform industry rivals Strategy Formulation and Implementation •Strategic actions taken to earn above-average returns Superior Returns •Earning of above-average returns

References

Related documents

‘UAE’ HSBC Bank Middle East Limited, Dubai; ‘HK’ The Hongkong and Shanghai Banking Corporation Limited, Hong Kong; ‘TW’ HSBC Securities (Taiwan) Corporation Limited; ‘CA’

Identi fi cation of zoonotic Cryptosporidium and Giardia genotypes infecting animals in Sydney ’ s water catchments.. Evidence

Relying in particular on Article 8 (right to respect for private and family life), the applicant notably complained about the lack of opportunity to establish whether the

The analysis shows that the impact of COVID-19 influenced the following aspects: (a) academic activities; (b) work-family relations; (c) health effects; (d) increased

The area is created using HTML5 canvas element (Fig. 2) in order to detect the position where the user touched on. csound lighttpd + php Web browsers on smartphones etc.. 2) function

First, despite previous evidence from existing literature and our sur- vey that formal appropriability mechanisms are less relevant for capturing value from innovation by KIBS firms

The runner top & all the exposed vertical surfaces shall be finished with 1.0 mm thick laminate of approved colour and make.. Inner surface should be painted with 2

Cass Defeats Detroit Cody 36-6 Cass Defeats Detroit King 20-18 Cass Loses to Detroit Crockett 7-0 Cass Defeats Detroit Mumford 49-13.. Cass Loses to Detroit Crockett 14-9