1. Strategic Management and Entrepreneurship
Strategy
A comprehensive plan of action that sets critical direction for an organization and guides the allocation of its resources.
Strategic Management
The process of formulating and implementing strategies.

2. Five Strategic Management Tasks
Identify organizational mission and objectives.
What are we….what do we want to be……
Assess current performance vis-à-vis mission and objectives.
How are we doing…...
Create strategic plans to accomplish purpose and objectives.
How can we get where we want to be…..

3. Five Strategic Management Tasks
Implement the strategic plans.
Has everything been done that needs to be done….
Evaluate results; change strategic plans and/or implementation processes as necessary.
Are things working out as planned, and what can be improved upon…...

4. The Strategic Management Process
Strategy Formulation
Analysis of the Mission (Purpose)
Analysis of Values (Corp Culture)
Analysis of the Organization (S&W)
Analysis of the Environment (O&T)

5. Analysis of the Mission
Usually expressed in the form of a Mission Statement in which it identifies the organization’s official objectives, and it defines the Domain in which the organization intends to operate such as:

6. Analysis of the Mission
the Customer it intends to serve.
the Products and/or Services to be provided.
the Location in which it intends to operate.
the Philosophy that will guide the employees.

7. Analysis of the Mission
Strategic Constituencies Analysis
What is the organization’s commitment to it’s stakeholders:
Employees, Stockholders, Suppliers, Creditors, Communities

8. Analysis of Core Values
The broad based beliefs about what is or is not appropriate.
Corporate Culture
The predominate value system for the organization.

9. Analysis of Core Values
Through corporate cultures, the values of managers and other individuals are shaped and pointed in common directions.
It defines the character of an organization to both itself and its external stakeholders.

10. Analysis of Objectives
Operating Objectives
Direct activities toward key and specific results.
Shorter term targets against which actual performance results can be measured as indicators of progress and continuous improvement.

11. Analysis of Objectives
Operating Objectives
Profitability
Market Standing
Human Resources
Quality
Social Responsibility
Cost Efficiency
Financial Resources
Innovation

12. Analysis of the Organization (SWOT)
Internal Assessment of the Organization
Strengths?
Mfg’ing Efficiency
Skilled Workforce
Good Market Share
Strong Financing
Superior Reputation
Weaknesses?
Outdated Facilities
Inadequate R&D
Obsolete Tech
Weak Management
Past Planning Failures

13. Analysis of the Organization (SWOT)
External Assessment of the Environment
Opportunities?
New Markets
Strong Economy
Weak Rivals
Emerging Tech.
Growth of Market
Threats?
New Competition
Shortage of Resources
Changing Mkt Taste
New Regulations
Substitute Products

14. Levels Of Strategy Corporate Sets the overall strategic direction.
Business
Sets the strategic direction for a single division or strategic business unit (SBU).
Functional
Sets functional directions for supporting business and corporate strategies. A strategy that guides activities within specific functional areas.

15. Types of Strategies Growth Strategy
Seeking greater size and the expansion of current operations.
This objective can be pursued in a number of different ways through two basic strategies:
Concentration and Diversification

16. Turnaround - Divestiture Liquidation
Types of Strategies
Retrenchment
Sometimes called defensive strategies, involves decisions to reduce operations and cut back in order to gain efficiencies and improve performance.
There are three basic approaches:
Turnaround - Divestiture Liquidation

17. Types of Strategies Stability
Maintains the present course of action without commitment to any major operating changes.
Typically pursued when an organization is doing well in a receptive environment, when low risk is important ….. and/or when time is needed to consolidate strengths …….

18. Types of Strategies Combination Strategies
Simultaneously employs more than one of the other strategies.
This often reflects different strategic approaches among subsystems.

19. Strategy Formulation Models
Portfolio Planning
Seeks the best mix of investments among alternative business opportunities.
It is most useful for addressing corporate-level strategy in multibusiness or multiproduct situations.

20. Strategy Formulation Models
The BCG Matrix
A Portfolio planning approach offered by the Boston Consulting Group.
It ties strategy formulation to an analysis of business opportunities according to Market Growth Rate and Market Share.

21. Strategy Formulation Models
The BCG Matrix
It ties strategy formulation to four possible business states:
Stars - High share/high growth
Cash Cows - High share/low growth
Question Marks - Low share/high growth
Dogs - Low share/low growth

22. Strategy Formulation Models
Porter's Competitive Strategies
This approach begins with an analysis of an organization's competitive environment.
He identifies five strategic forces affecting industry competition:
Customers - Suppliers - New Entrants
Substitute Products - Industry Competitors

23. Strategy Formulation Models
Porter's Competitive Strategies
Next Porter identifies three generic strategies that organizations may pursue to gain strategic advantage:
Product Differentiation
Cost Leadership
Focus

24. Strategy Formulation Models
The Adaptive Model
Organizations should pursue product/market strategies that are congruent with the nature of their external environments.
Prospector Strategies - Taking risk, seeking opportunities, innovation, and growth.
Defender Strategy - Avoiding change, seeking stability and perhaps retrenchment.

25. Strategy Formulation Models
Analyzer Strategy - Maintaining stability, while exploring limited innovation.
Reactor Strategy - Responding to events, but without a guiding strategy.

26. Strategy Formulation Models
Product Life Cycles
A series of stages a product or service goes through in the life of it marketability.
Introduction
Growth
Maturity
Decline
Suggests that different business strategies should be used to support products in different stages of their life.

27. Strategy Implementation
The Incremental-Emergent View
Not all strategies are clearly formulated at one point in time and then implemented step-by-step.
They take shape, change, and develop over time as modest adjustments to past patterns.
It is called Logical Incrementalism in which incremental changes in strategy occur as managers learn from experience.

28. Strategy Implementation
Strategic Planning Pitfalls
Failures of Substance
Reflects a lack of attention to the major strategic
planning elements.
Failure of Process
Reflects poor handling of the ways in which the
various aspects of strategic planning were
accomplished.
Insufficient Participation Error
Goal Displacement

29. The Nature of Entrepreneurship
A term used to describe risk-taking behavior that results in the creation of new opportunities for individuals and/or organizations.

30. Typical Characteristics of Entrepreneurs
Internal Locus of Control
High Need for Achievement
Tolerance for Ambiguity
Self-Confidence
Action-Oriented

31. Entrepreneurs
Businesses depend on entrepreneurial managers willing to assume risk and encourage the creativity and innovation so important to continued success.
Intrapreneurship
Skunk works