1. Strategy Formulation and Implementation
D: Chapter 8
Strategy Formulation and Implementation

2. Chapter Outline Thinking strategically What is strategic management?
Grand strategies
Global strategies
Levels of strategy

3. ORGANIZATIONAL LEVELS OF STRATEGIES
TM 7-3
ORGANIZATIONAL LEVELS OF STRATEGIES
CORPORATE STRATEGIES
Type of
business
Competitive position
Resource development
BUSINESS STRATEGIES
How to compete in a particular market
How to achieve competitive advantage
FUNCTIONAL STRATEGIES
Action plans for each functional area
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©The McGraw-Hill Companies, Inc., 1998 2 2 2 3

4. Chapter Outline
The strategic management process
SWOT analysis

5. STRATEGY FORMULATION STRATEGY IMPLEMENTATION assess environmental
TM 7-2
STRATEGY
FORMULATION
STRATEGY
IMPLEMENTATION
assess
environmental
factors
Conduct
Competitive
Analysis:
* Strengths
* Weaknesses
* Opportunities
* Threats
Identify
Current
Mission
and
Strategic
Goals
Develop
Specific
Strategies:
* Corporate
* Business
* Functional
Carry
Out
Strategic
Plans
Maintain
Strategic
Control
assess
organizational
factors
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc., 1998

6. COMPETITIVE ADVANTAGE
TM 7-4
SWOT ANALYSIS
Strengths
Opportunities
Weaknesses
Threats
COMPETITIVE
ADVANTAGE
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©The McGraw-Hill Companies, Inc., 1998 3 3 3 4

7. Chapter Outline The strategic management process
SWOT analysis
Formulating corporate level strategy
Portfolio strategy

8. Relative Competitive Position
TM 7-8
BCG GROWTH - SHARE MATRIX
Relative Competitive Position
(market share)
High
Low
(net users
of resources)
Remainder
divested
High
QUESTION
MARKS
STARS
Market Growth Rate
CASH
COWS
Low
DOGS
Harvested, divested,
or liquidated
(net suppliers
of resources)
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc., 1998 5 5 8 5

9. Chapter Outline The strategic management process
SWOT analysis
Formulating corporate level strategy
Portfolio strategy
Formulating business level strategy
Five competitive forces
Competitive strategy

10. PORTERS FIVE COMPETITIVE
TM 7-5
PORTERS FIVE COMPETITIVE
FORCES MODEL
Rivalry
Company
Customer Bargaining
Power
Customer
Company
Supplier Bargaining
Power
Supplier
Threat of
New Entrants
Threat of
Substitutes
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc., 1998 6 6 6 5

11. Porter’s Competitive Strategies
Cost leadership
Differentiation
Focus

12. Chapter Outline The strategic management process
SWOT analysis
Formulating corporate level strategy
Portfolio strategy
Formulating business level strategy
Five competitive forces
Competitive strategy
Formulating functional level strategy
Putting strategy into action

13. Putting Strategy into Action
Leadership
Structural design
Information and control
Human resources