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A brief introduction to strategic management
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strategic management 1.ppt
1.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -1 Chapter 1 The Nature of Strategic Management Strategic Management: Concepts & Cases 13th Edition Fred David
2.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -2 Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives Strategic Management –Defined
3.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -3 Strategic Management In essence, the strategic plan is a company’s game plan
4.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -4 3 Stages of the Strategic Management Process Strategy formulation Strategy implementation Strategy evaluation
5.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -5 Vision & Mission Strategy Formulation External Opportunities & Threats Internal Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection
6.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -6 Strategy Implementation Annual Objectives Policies Employee Motivation Resource Allocation
7.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -7 Strategy Evaluation Internal Review External Review Performance Measurement Corrective Action
8.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -8 Key Terms in Strategic Management Competitive advantage Strategists Vision and mission statements External opportunities and threats Internal strengths and weaknesses Long-term objectives Strategies Annual objectives Policies
9.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -9 Anything that a firm does especially well compared to rival firms Strategic Management is Gaining and Maintaining Competitive Advantage
10.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -10 Strategists Gather Information Analyze Information Organize Information
11.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -11 Vision Statement – What do we want to become? Mission Statement – What is our business? Vision and Mission Statements
12.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -12 External Opportunities and Threats Analysis of Trends Economic Social Cultural Demographic/Environmental Political, Legal, Governmental Technological Competitors
13.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -13 Basic Tenet of Strategic Management External Opportunities and Threats Strategy Formulation Take advantage of External Opportunities Avoid/minimize impact of External Threats
14.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -14 Controllable activities performed especially well or poorly Determined relative to competitors Internal Strengths and Weaknesses
15.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -15 Typically located in functional areas of the firm Management Marketing Finance/Accounting Production/Operations Research & Development Management Information Systems Internal Strengths and Weaknesses
16.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -16 Assessing the Internal Environment Internal Strengths and Weaknesses Internal Factors Performance Measures Financial Ratios Industry Averages Survey Data
17.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -17 Specific results that an organization seeks to achieve in pursuing its basic mission Long-term means more than one year Long-Term Objectives
18.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -18 Long-Term Objectives Essential for ensuring the firm’s success Provide direction Aid in evaluation Create synergy Reveal priorities Focus coordination Provide basis for planning, organizing, motivating, and controlling
19.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -19 Means by which long-term objectives are achieved Strategies
20.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -20 Strategies Examples Geographic expansion Diversification Acquisition Product development Market penetration Retrenchment Divestiture Liquidation Joint venture
21.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -21 Short-term milestones that firms must achieve to reach long-term objectives Annual Objectives
22.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -22 Means by which annual objectives will be achieved Policies
23.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -23
24.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -24 Strategic Management Process Dynamic & continuous More formal in larger organizations Strategic Management Model
25.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -25 Strategic Management Communication is a key to successful strategic management
26.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -26 Benefits of Strategic Management
27.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -27 Benefits of Strategic Management Nonfinancial Benefits Enhanced awareness of threats Improved understanding of competitors’ strategies Increased employee productivity Reduced resistance to change Clearer understanding of performance-reward relationship Enhanced problem-prevention capabilities
28.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -28 Why Some Firms Do No Strategic Planning Lack of knowledge of strategic planning Poor reward structures Fire fighting Waste of time Too expensive Laziness Content with success
29.
Copyright © 2011
Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -29 Why Some Firms Do No Strategic Planning (continued) Fear of failure Overconfidence Prior bad experience Self-interest Fear of the unknown Honest difference of opinion Suspicion
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