Professional Documents
Culture Documents
Three-Stage Process
Strategy Formulation Strategy Implementation Strategy Evaluation
Fred R. David Prentice Hall Ch. 1-4
Strategy Formulation
Vision & Mission
Opportunities & Threats Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection
Fred R. David Prentice Hall Ch. 1-5
Strategy Formulation
Issues include:
What new businesses to enter What businesses to abandon How to allocate resources Expand operations or diversify Enter international markets Merge or form joint venture Avoidance of hostile takeover
Fred R. David Prentice Hall Ch. 1-6
Strategy Implementation
Resource Allocation
Ch. 1-7
Strategy Implementation
Ch. 1-8
Strategy Evaluation
Corrective Action
Ch. 1-9
Strategy Evaluation
Ch. 1-10
Ch. 1-12
Adaptation to Change
Ch. 1-15
Adaptation to Change
Rate and magnitude of changes
Increasing dramatically
E-commerce Demographics Technology Merger-mania
Effective Adaptation
Long-run focus
Fred R. David Prentice Hall Ch. 1-16
Adaptation to Change
Key strategic-management questions:
What kind of business should we become? Are we in the right fields? Should we reshape our business? What new competitors are entering our industry? What strategies should we pursue? How are our customers changing?
Fred R. David Prentice Hall Ch. 1-17
Key Terms
Strategists
Most responsible for success or failure of an organization Various job titles:
Chief executive officer President Owner Chair of the Board Executive Director Entrepreneur
Fred R. David Prentice Hall Ch. 1-18
Key Terms
Vision Statement
What do we want to become?
Mission Statement
What is our business?
Ch. 1-19
Key Terms
External Opportunities and Threats
Significantly benefit or harm the organization in the future.
Key Terms
External Opportunities and Threats
Largely beyond the control of a single organization. Basic tenet of strategic management
Strategy formulation to:
Take advantage of external opportunities Avoid or reduce impact of external threats
Fred R. David Prentice Hall Ch. 1-21
Key Terms
Environmental Scanning
Industry Analysis
Process of conducting research and gathering and assimilating external information
Ch. 1-22
Key Terms
Internal Strengths and Weaknesses
Controllable activities performed especially well or poorly.
Key Terms
Determining Internal Factors:
Financial ratios Measuring performance Industry averages Survey data
Ch. 1-24
Key Terms
Long-term objectives:
Mission-driven pursuit of specific results more than one-year out. Essential for organizational success
State direction Aid in evaluation Create synergy Focus coordination Basis for planning, motivating and controlling
Fred R. David Prentice Hall Ch. 1-25
Key Terms
Strategies:
Means by which long-term objectives will be achieved.
May include:
Geographic expansion, diversification Acquisition Product development, market penetration Retrenchment, divestiture Liquidation, joint venture
Ch. 1-26
Key Terms
Annual Objectives:
Short-term milestones that organizations must achieve to reach long-term objectives.
Ch. 1-27
Key Terms
Policies:
Means by which annual objectives will be achieved.
Ch. 1-28
External Audit
Chapter 3
Long-Term Objectives
Chapter 2
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Internal Audit
Chapter 4
Ch. 1-29
Strategic-Management Model
Strategic-Management Process
Ch. 1-30
Strategic-Management Model
1.Identify Organizations existing:
Vision Mission Objectives Strategies
Ch. 1-31
Strategic-Management Model
2. Perform External Audit 3. Perform Internal Audit 4. Establish long-term objectives 5. Generate, evaluate, select strategies 6. Implement strategies 7. Measure and evaluate performance
Ch. 1-32
Ch. 1-33
Ch. 1-34
Ch. 1-39
Ch. 1-40
Ch. 1-41
Ch. 1-42
Ch. 1-43