1. Group 1 Presentation: Strategic Management in Action By Mary Coulter
Group Members:
Mark Beal, Adrienne Collins, Jessica Drummond, Mike Sanchez, Mario Santos, Spencer Thomas, Alec Wegmann

2. Chp.1 Introducing the concepts of Strategic Management
Why it is important
What it is
Who’s involved
Impacting factors

3. Why is Strategic Management Important?
Individual Importance:
Everyone in an organization is somehow involved in strategic management
Understanding strategic decisions will enable you to do you job well, have your work valued, and be rewarded for your work

4. Why is Strategic Management Important?
Two of the most fundamental business questions relate back to strategy:
why firms succeed or fail
why firms have varying levels of performance
Organizations that use strategic management tend to have higher levels of performance or profits

5. Why is Strategic Management Important?
Situations are continually changing internally and externally; being able to adapt to these situations and achieve expected performance is challenging
Strategic management helps coordinate activities from various levels and departments; creating a more efficient organization

6. Example: The importance of strategic management during the current recession
Managers noticed that consumers no longer wanted to buy pens or paper in bulk. So the company created displays to sell individual sharpies and small packs of paper, which proved successful.

7. Strategic Management can be found in almost every sector of any given business
Some Examples:
Texas Tech’s head coaching decisions.
Blockbuster’s attempts to compete with Netflix.
Or Disney’s ever continuing global expansions tactics.

8. Why do similar companies differ in success?
Because of their strategy/strategic management.
Wal-Mart and Kmart both founded in
Wal-Mart: The world’s largest and most successful retailer.
Kmart: The largest retailer to seek Chp.11 bankruptcy.

9. Strategizing “Outside the Box”
3M has all employees take an hour of each work day to brainstorm new product ideas.
The Post-it note was one of the products that resulted

10. Four Characteristics of Strategic Management
1. Interdisciplinary –all areas of the business are involved.
2. External Focus – involves the interactions of the company with the economy, competitors, customers, etc.

11. Four Characteristics of Strategic Management
3. Internal Focus – assessing the organization’s resources and capabilities. Such as all-star employees.
4. Future Direction – Companies must make projections about their future position to create a successful strategy.

12. The Strategic Management Process
A process that implies sequential and interrelated activities leading to some outcome. These activities include:
Situation Analysis
Strategy Formulation
Strategy Implementation
Strategy Evaluation

13. Situation Analysis – Analyzing the Current Situation
Scanning and evaluating:
The current organizational context – The economy, the role of stakeholders, the dynamics of change, the role of the organizational culture and mission
External environment – competitors, economy, customers, trends
And organizational environment – resources, distinctive capabilities, core competencies

14. Strategy Formulation
Developing and choosing appropriate strategies as guided by the results of situation analysis.
3 Main Types of Strategies:
1. Functional Strategies
2. Competitive Strategies
3. Corporate Strategies

15. 1. Functional Strategies
Using functional areas, resources and capabilities to support the corporate and competitive strategies.

16. Most common functional areas:
Production-Operations (Manufacturing)
Marketing
Research and Development
Human resources
Financial Accounting
Information Systems Technology and Support

17. Functional Areas Academics
Student Services (health, housing, and hospitality)
Financial Services
Facilities Management
Athletics
Alumni Relations

18. 2. Competitive Strategies
Goal-directed plans and actions that are concerned with how an organization competes in a specific business or industry.
The competitive strategies and advantages an organization currently has or wants to develop.

19. Competitive Strategy
Abercrombie and Fitch has strategies to compete with:
American Eagle Outfitters
Gap
J. Crew
Other specialty clothing retailers.

20. 3. Corporate Strategies
What business(es) to be in and what to do with those businesses.

21. Corporate Strategy
Competes with a portfolio of more than 3,000 beverages.
Coca-Cola Products A - Z

22. Strategy Implementation
Putting the various strategies into action.
It is not enough to just formulate a great
strategy, it must be implemented.

23. Strategy Evaluation
Involves evaluating both the outcomes of the strategies and how they have been implemented.
If the evaluation determines that the strategic goals are not being met, then the strategy may need to be modified.

24. Looking at Strategic Management’s Past
The history of strategic management helps us better understand how and why today’s managers implement strategic management.
The history ranges from great military battles to current research.

25. Strategy’s Military Roots
Strategy can be seen in historical decisions and actions used by military organizations.
Blitzkrieg – a lighting swift attack by mobile forces, named after the German WWII strategy.

26. Academic Origins of Strategic Management
As a field of study, strategic management is relatively young.
Most of its theoretical foundation comes from economics and organization studies.

27. Strategic Planning and Strategic Management Emerge
1960’s - One correct way to manage in all situations was replaced by contingency approaches.
1970’s and 1980’s - Researchers tried to understand and describe strategic management.

28. Who’s Involved with Strategic Management?
Employees at all organizational levels play a role in developing, implementing, and changing strategy.
The Board of Directors
Top Management
Other Managers and Organizational Employees AC

29. The Board of Directors
The Board of Directors is an elected group that represents a company’s shareholders.
Responsibilities:
Review and approve strategic goals and plans.
Review and approve the organization’s financial standards and policies.
Select, evaluate, and compensate top-level managers.
Etc. AC

30. Home Depot’s Board
Company shareholders were vocal about the unhappiness with the previous CEO’s pay and performance.
Bonnie G. Hill, the longest-serving director on Home Depot’s board, met with stockholders and listened to their complaints.
The Board of Directors decided to link the pay of current CEO Frank Blake to the company’s performance. AC

31. The Role of Top Management
An organization’s top manager is typically the chief executive officer (CEO).
The CEO’s top management team usually includes:
COO
CFO
CIO
Other executive or senior managers. AC

32. Strategic Leadership
The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a valuable future for the organization.
Samsung Electronics-Changing its Leadership Team after financial scandal in AC

33. Strategic Leadership Determining Organizations POV
Establishing Balanced Controls
Maintaining Core Competencies
Effective Strategic Leadership
Emphasizing Ethical Decisions
Developing Human Capital
Creating Strong Organizational Culture

34. Determining Organization’s Purpose/Vision
Reason for existence
Bill Ford and the creation of the Ford U Car
Ford’s vision is to respect their past accomplishments but lead the way in the future. MB

35. Exploiting and Maintaining Core Competencies
Value adding to the company
Wal-Mart and the recession MB

36. Developing Human Capital
Retention
Intellectual Capital MB

37. Creating and Sustaining a Strong Organizational Culture
Best Buy CEO Brian Dunn
Focus on ‘the team’ and ‘local growth’
Proven itself in this recession MB

38. Emphasizing Ethical Decisions
Keeps the company in a positive PR position
Johnson & Johnson Credo MB

39. Establishing Appropriately Balanced Controls
Curb the actions of the company in the direction of the objective
Two Types
Financial (accounting based and typically short-term)
Strategic (exchanging information)
A balance of the two is required MB

40. Other Managers and Organizational Employees
Strategic Responsibilities
Implementation
Actually doing the job and completing the objective.
Evaluation
Lower levels of the organization hierarchy tend to do this: this is when the processes to complete the objective are evaluated to see their effectiveness.
iPhone, Dev Center, and Forum MB

41. Three Factors Impacting Strategic Management
Globalization
Corporate Governance
E-Business

42. Global Economy & Globalization
Benefits
Economic
Social
Challenges
Current state of economy
Openness
Interdependence between trading nations
Mario

43. Challenges of Openness
Open to the good and bad
Breaks down geographic barriers between countries
Increased sensitivity to political and cultural differences?
Interdependence of trading countries
Domino effect
World Trade Organization
World Bank Group
International Monetary Fund (IMF)

44. Challenge of Cultural & Political Differences
Cultural differences
Religion, beliefs, traditions, etc…
Ex. Nike and the Muslim culture
Must be sensitive to cultural and political differences
Awareness of how decisions & actions will be viewed by ALL
Adjust to diverse views
Negative views of capitalism

45. Corporate Governance Observes how a company uses its resources
Protects stakeholders’ interest
Sarbanes-Oxley Act
Enron, Tyco, Worldcom
Billions of dollars lost in 18 months
Changed Role of Board of Directors
Independent group that looked out for the interest of stockholders
“The Business Roundtable”
Improved Financial Reporting
More disclosure and transparency of financial statements

46. Management in E-Business
E-Business – information and communication technologies that support activities of a business
Cisco: Teleconferencing
E-Commerce – retailing side of E- Business

47. Three Approaches to E-Business
Enhanced – provides a new medium of doing business; does not replace traditional ways of doing business
Wal-Mart.com
Enable – helps perform business functions better, but not to sell anything
LeviStrauss.com
Internet Retail – utilizing the resource of the internet to reach customers
TheMountainHideaway.com

48. Bill's Corporate Strategy