BUSINESS POLICY Strategic Management PLM MBA-TEP

Course Objectives Understand the strategic planning process Analyze issues in strategic management Evaluate the strategic moves of a variety of organizations Apply strategic management principles and practices in a simulated management situation Evaluate your own career plans using a strategic management perspective

Course Outline The nature of strategy The formulation of strategy The implementation of strategy

PART 1 1.Understanding the Concept of Strategy 2.Communicating Purpose through Mission Statements 3.The Role of the Strategist in Governance 4. Viewing Strategy from the Stakeholders Perspective

Session 1 Understanding the Concept of Strategy

Exercise : Innkeepers of America

Key Points 1. Affects future direction of firm 2. Affects the firm as a whole 3. Has significant financial impact on the firm 4. Evokes a significant response from the environment

Strategy Plan Ploy Pattern Position Perspective

Strategy is a Purposefully Opportunistic Process

The Comprehensive Strategic Management Model Perform External Audit Establish Long-Term Objectives Generate, Evaluate and Select Strategies Implement Strategies – Marketing, Finance, Accounting, R&D, And MIS Issues Management Issues Measure and Evaluate Performance Develop Vision and Mission Statements Internal Strategy Formulation Implementation Evaluation Source: Fred R. David, “How Companies Define Their Mission, “ Long Range Planning 22.no3 (June 1998): 40.

Session 2 Communicating Purpose Through Mission Statements

“Only a clear definition of the mission and purpose of the business makes possible clear and realistic business objectives. It is the foundation for priorities, strategies, plans and work assignments.” - Peter F. Drucker

Mission Statement Criteria 1.Defines the organization’s core purpose in terms of customers needs 2. Indicates the key beliefs, values and priorities that managers are committed to and that influence the decisions they make

Examining Mission Statements Exercise : Examining Mission Statements

Session 3 The Strategist’s Role in Governance

STRATEGY AS A BALANCING PROCESS Crisis Time

Caselet MANAGERIAL IMAGINATION

PERSONAL CAPITAL What drives you?

Session 4 Viewing Strategy From the Stakeholder’s Perspective

Stakeholders Customers Stockholders Employees Creditors Supplers Government Local Community

U.S. versus Microsoft Corporation Caselet : U.S. versus Microsoft Corporation

Key Concepts 1. Change drives strategy 2. Strategy is purposefully opportunistic 3. Frame mission from the customer’s perspective 4. The decision-maker is a very important person 5. Strategy is a profoundly political

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