1. Session2BA 490 Strategic Management1 Session 2 Strategic Management Questions? Strategic management concepts Strategy: meaning, perspective, & value Strategic management process Levels of strategy Application of concepts to Wal-Mart and Costco

2. Session2BA 490 Strategic Management2 Assignment for Session 2 Review the syllabus Check out the course web site Study H&W Ch 1 Basics of strategic management Prepare to discuss the following questions on the Wal-Mart and Costco articles (available online through course web site). 1. How do the strategies for Wal-Mart and Costco differ? 2. In what areas do their goals differ? Use the list of areas at the top of page 7 in H&W. 3. Distinguish the three elements of the hierarchy of strategy for each company, e.g., give an example of each level of strategy.

3. Session2BA 490 Strategic Management3 Strategy: a plan for interacting with the competitive environment to achieve organizational goals (Daft, 2001) Strategy—what is it?

4. Session2BA 490 Strategic Management4 Major elements of strategy Strategy formulation--development of long- range plans for the effective management of environmental opportunities and threats, taking into account strengths and weaknesses Strategy implementation--Process by which strategies and policies are put into action through the development of programs, budgets, and procedures

5. Session2BA 490 Strategic Management5 External—to determine What the firm seeks to be What it seeks to accomplish (overall goals and objectives) Opportunities and threats in the environment The path it will take to succeed within the environment Internal—to determine Capabilities, i.e., strengths and weaknesses The design of the organization Supporting functional (organizational) objectives strategies plans Strategy—where is its focus?

6. Session2BA 490 Strategic Management6 Strategic management process Reference Fig. 1.3 Environmental scanning Strategy formulation Strategy implementation Evaluation and control

7. Session2BA 490 Strategic Management7 How do the strategies of Wal-Mart and Costco differ?

8. Session2BA 490 Strategic Management8 In what areas do their goals differ? Use the list of areas at the top of page 7 in H&W. Profitability Efficiency Growth Stockholder wealth Utilization of resources Reputation Contributions to employees Contributions to society Market leadership Survival Personal needs of management

9. Session2BA 490 Strategic Management9 In what areas do their goals differ? AreaCostcoWal-Mart Profitability Efficiency Growth Stockholder wealth Utilization of resources Reputation Contributions to employees Contributions to society Market leadership Survival

10. Session2BA 490 Strategic Management10 Distinguish the three elements of the hierarchy of strategy for each company. Corporate Business Functional Marketing Finance Operations

11. Session2BA 490 Strategic Management11 Margin The Generic Value Chain Primary Activities Support Activities Procurement Serv- ice Technology Development Human resource management Firm infrastructure Inbound Logistics Opera- tions Out- bound Logistics Market- ing and sales

12. Session2BA 490 Strategic Management12 Strategy Exercise QuestionResponse Eval. (A to F) What is their strategy? Who or what do they seek to be? What do they seek to accomplish? How will they pursue their goals & objectives? Give an example of each level of strategy Corporate Business Functional What functional strategies are key to success? What supporting functional objectives can you discern or suggest?

13. Session2BA 490 Strategic Management13 Review questions 1. What is strategic management & why does it matter? 2. What are the major steps in the strategic management process. 3. Identify the 3 levels of strategy in the hierarchy of strategy. 4. What distinguishes each level of strategy?

14. Session2BA 490 Strategic Management14 Assignment for session 3 Reading Packet 1: Organizational effectiveness--the basis for deciding A brand called you article A brand called you Prepare to discuss the following based on the readings and Amazon article (available online through course web site). (Quiz likely) 1. What is organizational effectiveness and how can it be measured? 2. Is Amazon effective? Justify your response using the organizational effectiveness concepts in the reading. 3. What does the Brand Called You article suggest you do to further your career?