1. Postech Strategic Management of Information Systems LAB Strategic management

2. Postech Strategic Management of Information Systems LAB Strategic Management Process oBasic elements of the strategic management process

3. Postech Strategic Management of Information Systems LAB Hierarchy of strategy Corporate strategy Functional strategy Business strategy (decision level)

4. Postech Strategic Management of Information Systems LAB Strategic decision-making process (1/2) Evaluate Current Performance Results Examine Evaluate the current: -Mission Objectives Strategies policies Review Corporate Governance: Board of Directors Top management Scan External Environment: Societal task Scan Internal Environment : Structure Culture resources Select Strategic Factors: Opportunities Threats Select Strategic Factors: Strengths weaknesses Analyze Strategic Factors (SWOT) In Light of Current situation

5. Postech Strategic Management of Information Systems LAB Strategic decision-making process(2/2) Evaluate And control Evaluate And control Implement Strategies: Programs Budgets procedures Implement Strategies: Programs Budgets procedures select and Recommend Best alternative select and Recommend Best alternative Generate and Evaluate Strategic alternatives Generate and Evaluate Strategic alternatives Review and Revise as Necessary : Mission objectives Review and Revise as Necessary : Mission objectives

6. Postech Strategic Management of Information Systems LAB Environmental variables Task environment (industry) Internal Environment Structures Culture resources Customers Creditors Special interest groups governments shareholders Economic forces Employees Labor unions competitors Trade associations Communities suppliers Sociocultural forces Political-legal forces Technological forces Social environment

7. Postech Strategic Management of Information Systems LAB Some important variables in the social environment EconomicTechnologicalPolitical-legalSociocultural GDP trends / Inflation rates Total government Spending for R&D Antitrust regulations Lifestyle changes Career expectations Interest rates / money supply Total industry spending for R&D Environmental protection laws Consumer activism Disposable and Discretionary income Focus of technological effortsTax laws Rate of family Formation Patent protectionSpecial incentives Growth rate of Population Unemployment levelNew products Foreign trade regulations Age distribution of Population Wage/price control New developments in technology transfer from lab to marketplace Attitudes toward Foreign companies Regional shifts in Population Devaluation/revaluation Laws on hiring and Promotion Life expectancies Birth rates

8. Postech Strategic Management of Information Systems LAB Scanning the external environment Analysis of societal environment Economic, sociocultural, technological, political-legal factors Analysis of societal environment Economic, sociocultural, technological, political-legal factors Market analysis Market analysis Competitor analysis Competitor analysis Community analysis Community analysis Supplier analysis Supplier analysis Selection of Strategic factors Opportunities threats Selection of Strategic factors Opportunities threats Governmental analysis Governmental analysis Interest Group analysis Interest Group analysis

9. Postech Strategic Management of Information Systems LAB Issues priority matrix Probable impact on corporation highmediumLow Probability of Occurrence High High priority Medium priority Medium High priority Medium priority Low priority low Medium priority Low priority Low priority

10. Postech Strategic Management of Information Systems LAB Forces driving industry competition Industry Competitors Rivalry among Existing firms Industry Competitors Rivalry among Existing firms Potential entrants Other Stakeholders Other Stakeholders Suppliers Buyers Substitutes

11. Postech Strategic Management of Information Systems LAB Mapping strategic Groups ( U.S restaurant chain industry) Product-line breadth Full menu Price low high limited menu Burger King McDonald’s KFC Pizza hut Shoney’s Denny’s Country kitchen Ponderosa bonanza Red lobster Olive Garden Chichi’s Perkins

12. Postech Strategic Management of Information Systems LAB Industry matrix Strategic factorsWeight Company A rating Company A weighed score Company B rating Company B weighted score Total1.00 1 34562