1. STRATEGIC MANAGEMENT SESSIONS & SEMINARS October 3 & 10 … 2013 Session 1 - 4

2. Our goal? Learn about & practice all steps of strategic planning process Choose a company for which to formulate a strategic business plan Identify / formulate: - mission statement – framework w/in which strategy shall be crafted - corporate vision – where do we want to be in # years - business aims -> specific objectives Scan the environment – carry out external, internal & industry analysis -> situational analysis -> Internal analysis - core business & competencies, resources available, corp. structure, required inputs, corp. culture => IFAS (Internal Factor Analysis Summary)

3. Our goal? Practice all steps of strategic planning process Environment scanning cont’d: -> External analysis - PEST(LE) => EFAS (External Factor Analysis Summary) - Industry Analysis (task environment): -> Porter’s Five (Six) forces => Industry Matrix - Situational Analysis – finding a strategic fit b/w external opportu- nities & internal strengths - mitigating harmful effects of external threats due to internal weaknesses => SFAS (Strategic Factor Analysis Summary) => SWOT analysis

4. Strategic Management Model Existing Existing business model Mission, vision, goals, objectives, corp. values SWOT => Strategic choice External analysis -> opportunities, threats Internal analysis -> strengths, weaknesses Functional-level strategies Business-level strategies Corporate-level strategies Strategy implementation

5. Strategic Management Cycle

6. Strategic management – mgmt for distant horizons Series of destinations which are coming closer with time for everyone – Where was the company yesterday? (if applicable) – Where is the company now ($, ext. environment, market)? What conditions is it in (internally)? – Where will the company be tomorrow? vs. Where can the company be tomorrow? vs. Where is the company likely to be tomorrow – if we do a, b, c, or nothing at all? Nothing happens by itself => 1.=> What are the business objectives? -> WHERE TO? 2.=> What are the best ways to achieve these objectives? -> HOW, WHEN? 3. => What resources are necessary to execute the plan? -> w/WHAT & WHOM

7. Which sector? What company? … your choice http://www.top500.de/g0037200.htm http://www.europages.co.uk/ http://www.hbi.cz/index.php?Lang=en http://www.hoovers.com/ http://www.marketresearch.com/ http://www.business.com/ http://www.expats.cz/directory/#482 http://www.rusmarket.com/ http://www.thomasnet.com/ http://no1construction.com/ http://dir.yahoo.com/business_and_economy/directories/companies/

8. Mission statement Statement of purpose of existence and operations of a company w/info including: – Why are we here? -> purpose – PAST & NOW and FUTURE – Corp. aims – How do we add value to stakeholders? -> How do we fulfill our mission? AB C The WHY …

9. Mission statement More specific mission statements may spell out: – What target market we wish to serve? – With what good/service -> product? – How are we unique - w/product, w/how we operate (e.g. environmental friendly) Problems, questions?

10. Which companies do these mission statements represent? "To experience the joy of advancing and applying technology for the benefit of the public“ "To build a place where people can come to find and discover anything they might want to buy online." "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts.

11. Mission statements Take a wild guess BMW vs. Mercedes McDonalds vs. KFC IBM vs. Apple Acer vs. Dell Google vs. Yahoo

12. Mission statements – conclusion? Questions to consider Why are some mission statements similar? Why do they look so broad or general? Would it pay to narrow a mission statement down? Your task For the company of your choice, formulate a mission statement in your own words based on your current knowledge about the company. Identify the mission statement based on your research.

13. Vision statement http://mystrategicplan.com/resources/topic/vision- statements/ http://mystrategicplan.com/resources/topic/vision- statements/ Company image in the future – What it wants to become by a certain point in time -> where it wants to go and how it intends to get there – May also be roughly considered as a framework for strategic planning The audience? …. Stakeholders & market – Employees – it provides direction and guidelines for their conduct and should be inspirational – Banks – what they may be likely to finance – Shareholders – what projects are likely to bring more $ to them – Consumers / customers – what products to keep an eye for …

14. Corporate vision McDonalds: “… be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.“ Toyota: "To become the most successful and respected lift truck company in the U.S.” Avery Dennison : "To be recognized as the world's best coating and converting company by providing innovative decorating, information transfer and bonding solutions that enable our customers' success.“ - Manufacturing pressure sensitive labeling materials, retail apparel ticketing, graphics imaging media, office products, specialty tapes

15. Corporate vision Your task Identify the corporate vision for your company Can be found directly in the vision statement or derived from a mix of information provided by top management. Will be subject to re-evaluation / reconsideration after SWOT analysis based on EFAS, IFAS, and SFAS are performed