Session02: Strategic Management Process Dr. Mark H. Mortensen and 212 Tues &Thurs 2:00 to 3:15 3:30 to 4:45 Manning School of Business

Mortensen Consulting Group Today 1. Attendance 2. Turn in Assignment #1 3. Lecture on Chapter 1 in book 4. Discussion on Strategic Management Process 5. Go over Assignments #2 & #3 (Due next week)

Mortensen Consulting Group Lecture on Chapter 1

Mortensen Consulting Group Today 1. Attendance 2. Turn in Assignment #1 3. Lecture on Chapter 1 in book 4. Discussion on Strategic Management Process 5. Go over Assignments #2 & #3 (Due next week)

Mortensen Consulting Group Strategic Management Process: Step-by-Step [1]

Mortensen Consulting Group Strategic Management Process: Environmental Scanning Assumptions Constraints Truisms TOOLS PEST(EL) analysis Porter 5-Forces model Company positioning chart Product positioning charts BCG product matrix GE product matrix Core competency analysis Value chain analysis Bowman’s Strategy Clock

Mortensen Consulting Group Strategic Management Process: Strategy Formulation TOOLS All the tools from Environmental Scanning SWOT Analysis (TOWS, IFAS, EFAS) Unique Selling Point Analysis Scenario Planning

Mortensen Consulting Group Strategic Management Process: Strategy Implementation TOOLS Vision Statement Mission Statement Strategic Goals Change Management Programs Projects

Mortensen Consulting Group Strategic Management Process: Evaluation and Control TOOLS Everything else you have learned in Business School

Mortensen Consulting Group Strategic Management Process: Examples Kenichi Omhae and Yamaha Louis Gerstner and IBM Matt Desch and Telcordia Technologies “In business as on the battlefield, the object of strategy is to bring about the condition most favorable to one’s own side.” - Kenichi Ohmae “The next thing is: we can make IBM even better,... We brought IBM back but we're gunning for leadership.” Providence and Warburg Pincus together put just over $300 million in equity towards buying Telcordia in The rest of the $1.35 billion headline purchase price was funded with borrowed money. It was a dangerous investment, but they were able to sell it to Ericsson for $1.15 billion paying down Telcordia debt and are holding onto holding onto the company’s cash, helping turn a slim profit.

Mortensen Consulting Group Today 1. Attendance 2. Turn in Assignment #1 3. Lecture on Chapter 1 in book 4. Discussion on Strategic Management Process 5. Go over Assignments #2 and #3 (Due next week)

Mortensen Consulting Group For next Tuesday Read Chapter 1 in textbook Purchase the case studies

Mortensen Consulting Group Assignment #2: Gather info on your group’s assigned company Due by: Tuesday 28 January (next week) Each of you has been assigned a group, named for a company. Gather some information about the company and be prepared to discuss it within your group in class on Thursday.  Name, when founded, where headquartered, public stock symbol  Business model (How does it make its money?)  Geographies in which it operates  Revenue and stock price history  Anything else that you think would be interesting to the class Just gather and organize the information, bringing it to the next class. Nothing to turn in. During the next class, each group will create and give a short presentation to the class on your company.

Mortensen Consulting Group Assignment #3: Written report on Starbucks and Dunkin’ Donuts Due by:Next Thursday 30 January - (next week) Each person visit both a Starbucks and a Dunkin’ Donuts retail store and write a report.  Describe and contrast the atmospheres, types of menu items, service quality, and prices  Describe and contrast the patrons and how they react to the above  Talk to at least one person in the store about why they come there and relate their opinions  Describe your own experiences at each of them, from this and other visits. Visit the Starbucks and Dunkin’ Donuts web sites:  Try to determine their target markets, mission statements, and anything else you can glean about their strategies – write a paragraph or two on each  Contrast the two web sites  Contrast the apparent strategies of the two  Discuss how the information on the web sites does or does not match the reality in each case. A few informal pages should suffice – if it wants to be longer, OK.

Mortensen Consulting Group Strategic Management – Spring 2013