Strategic Management Introduction

Strategy Choice of objectives Formulation of policy Attainment of objectives All depend on many variables, and Are valid for one organization

Objectives in Knowledge Concepts Situations Literature

Objectives in Attitudes Generalist Orientation Practitioner Orientation Professional Orientation Innovative Manager

Objectives in Skills Analytical ability Strategic analysis Making analysis effective General management skills Universal need for strategic policy skills

Strategic Management Tasks Form a Strategic Vision Convert to Measurable Objectives Craft a Strategic Plan Implement the Plan Evaluate the Results

Crafting a Strategy Proactive and Reactive Strategy and Entrepreneurship Evolution Strategy and Planning Implementation and Execution

Strategy Making Tasks: Form a Strategic Vision What is the Business? Customer Needs Customer Groups Technologies and Functions Broad vs. Narrow Definition Communicate the Vision Decide When to Change

Mission Statement Describes the raison d’être Purpose of the organization Primary objectives Defines the key measures of success Prime audience Leadership team Stockholders

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 values For employees: Gives direction how they are to behave Inspires them to give their best For customers: Shapes understanding of organization Provides a reason to interact

Modern Mission Statements "To preserve and improve human life." Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty & integrity Profit, but profit from work that benefits humanity MERCK

Modern Mission Statements "To make people happy." No cynicism Nurturing and promulgation of "wholesome American values" Creativity, dreams and imagination Fanatical attention to consistency and detail Preservation 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. Financial Long-range vs. Short-term Challenging 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 Strategy Business Strategy Functional Strategy Operating Strategy Uniting the Strategy Making Effort Top-down Process

Factors that Influence Strategy Industry Attractiveness SWOT Beliefs and Ambitions of Managers Company Culture Societal and Political Influences Regulatory and Legislative Actions

Strategy Making Approaches Board of Directors Approaches Chief Architect Delegation Collaborative Corporate Intrapreneur Comparing Approaches

Tests of a Winning Strategy Goodness of Fit Competitive Advantage Performance