Module: Strategic Management

Strategic Management : Overview

Strategy
Origin: 1680–90; < Gk stratēgía generalship, equiv. to stratēg(ós) military commander, general (strat(ós) army + -ēgos n. deriv. of ágein to lead)

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The Strategic Management Process Bateman. 135 .

Opportunity: As Supply – Demand Gap Show me the money! Service Superior Offering Trust Value for Cost Customer Needs/ Demands Current Unmet Emerging Quality Ethics Speed Innovation Availability .

The Lord of the Rings Accounting & Finance General Management Government Legal Office Marketing Research Key Stakeholders Marketing Suppliers Service Administration Distribution Target Market Segments: Customers Product Development HRD/HRM/ Corporate Culture Sales Supply Chain Management Production Quality Management Distributors Ethics Office Corporate IT Competitors .

What business are we in? What is our business? What do we stand for? How should we behave? Can we manage ourselves as a group? Strategic Thinking .

Organization Survival Internal Integration An organization cannot survive if it cannot manage itself as a group. Sloan Management Review Winter 1984. 3-15 . •Edgar Schein.Edgar Schein on Organizations • Two Survival Problems External Adaptation An organization cannot survive if it fails to successfully adapt to its environment. “Coming to a New Awareness of Organizational Culture”. pp.

What business are we in? What is our business? What is the economic logic of our business? What business model do we choose? External Adaptation .

The Internal Environment Accounting & Finance General Management Legal Office Marketing Research Service Marketing Administration Distribution Business Model: Revenue & Profit Streams Product Development HRD/HRM/ Corporate Culture Sales Supply Chain Management Production Quality Management Ethics Office Corporate IT .

Can we manage ourselves as a group? Internal Integration .

Corporate Culture Corporate Culture “Shared key values and beliefs of an organization ” • A source of sense of identity for its members • Generates commitment to something larger than the self • Enhances social system stability • Guides and shapes behavior • A source of competitive advantage Linda Smircich. “Concepts of Culture and Organizational Analysis”. Administrative Science Quarterly. 28 (1983). p.345 .

What do we stand for? How should we behave? External Adaptation .

A Social Institution What is our value to Society? .The Nature of a Business Corporation A Business-Economic Organization A Member of Society.

Epstein and D. Responsibility: Search for New Directions in Business and Society (1975). Rationality. Boulding on Survival of the Business Institution The survival of the business institution will depend much more on its ability to retain legitimacy than on the internal dynamics of the market environment itself. Legitimacy. Univesrity of Michigan University of Colorado •Kenneth E. E. •American economist •Educator. Votaw.Kenneth E. “The Legitimacy of the Business Institution”. 87 . Boulding. p. M.

Harvard University •E. Responsibility: Search for New Directions in Business and Society.Talcott Parsons on Social Legitimacy Legitimation is the process whereby an organization justifies to a peer or subordinate system its right to exist… •American sociologist •Educator.72-73 . Votaw. Legitimacy. M. Epstein and D. pp. Rationality.

Yale •Charles Perrow. 100 .Charles Perrow on Social Legitimacy The issue of legitimacy in economic organizations is closely involved with good corporate citizenship or responsible professional management. p. •American sociological theorist •Educator: Emeritus . Organizational Analysis: A Sociological View (1970).

improve quality of life Be ethical Ethical Responsibilities Obligations to do what is right. The foundation on which all others rest Obey the law Legal Responsibilities Be profitable Economic Responsibilities •A. “The Pyramid of Corporate Social Responsibility”. Law is society’s codification Of right and wrong.B. Business Horizons. July-August 199 . Carroll. just and fair.Archie Carroll’s CSR Pyramid (1979) Be a good corporate citizen Philanthropic Responsibilities Contribute resources to the community. Avoid harm. Play by the rules of the game.

Freeman’s Enterprise Strategy: What A Firm Stands For Social Responsibility Philosophy Leadership Philosophy External Stakeholders Philosophy Enterprise Strategy Internal Stakeholders Philosophy Social Contribution Statement Public Relations Policy Ethical Codes of Conduct .

Mission-Vision-Values Values: What we stand for/ What we believe in/ How we will behave Mission: Why we exist/ What our common purpose is/ why we are allowed to exist Vision: What we want to become/ What long-term success looks like We define our market/social relevance and strategic direction .

Survival: External Adaptation Organizational Survival External Adaptation External Adaptation Mission Vision Values External Environment-Strategy Fit Marketing Strategy: Product-Market-Customer Management Total Quality Management Enterprise Strategy: Corporate Governance-CSR-Code of Conduct .

Survival: Internal Integration Organizational Survival Internal Integration Internal Integration Mission Vision Strategy – Internal Environment Fit Values Business Model Corporate Culture Key Processes .

Strategy & Business Model Strategy • How we will succeed in our mission • How we will succeed in attaining our vision • How we will generate steadily growing revenues • How we will generate attractive profits and ROI Business Model .

How We Will Succeed Corporate Culture Business Model Mission BSC Strategy Map Key Processes Values Vision Marketing Strategy Enterprise Strategy Internal Integration Mission-Vision-Values Planning External Adaptation Monitoring. Controlling. Improving Organizing & Developing Leading & Motivating .

Strategic Planning Model ppt.exinfm. http://www.ppt .com/workshop_files/strategic_planning_model. Evans.Strategic Management Strategic Plan Mission Vision & Values Goals Strategy &Objectives Initiatives Measures O1 AI2 AI3 Why we exist Action Plans Evaluate Progress What we want to be/What we believe What we must achieve to be successful O2 Specific outcomes expressed in measurable terms (NOT activities) Planned Actions to Achieve Objectives Indicators and Monitors of success Desired level of performance and timelines AI1 M1 M2 T1 T1 M3 T1 Targets Matt H.

Strategic Thinking: Core Frameworks & Analytical Tools .

Strategic Direction • Mission • Vision • Values Business Scorecard SWOT Analysis Budget Updated Mission Statement Key Processes Strategic Thinking: Elements & Outputs Strategies & Objectives Culture Business Model Organization Structure BSC Strategy Map .

accountability • Division of labor • Communication Culture Organization Structure External Adaptation & Internal Integration • Values-driven internal integration Key Processes • Right systems & procedures Budget • Strategic Control Business Scorecard .Strategic Direction • Mission • Vision • Values SWOT Analysis • External Analysis • Internal Analysis • SWOT Updated Mission Statement • Key Factors For Success • Competitive Strengths • Strategic Issues • If needed • Corporate level • SBU level • Operational level Business Model Strategy • Economic logic of the business BSC Strategy Map • Strategy communication • Chain of command.

Improving Organizing & Developing Leading & Motivating .How We Will Succeed Corporate Culture Business Model Mission BSC Strategy Map Key Processes Values Vision Marketing Strategy Enterprise Strategy Internal Integration Mission-Vision-Values Planning External Adaptation Monitoring. Controlling.

Davidson • SBU Level • Operational level: Kotler. Deming Business Model • Business Model Canvass BSC Strategy Map • Kaplan and Norton Organization Structure • Chandler • Schein • Selznick Key Processes Culture Strategic Thinking: Frameworks & Tools Budget Business Scorecard .M-V-V Statements • Drucker • Davidson • Freeman • Selznick • Caux Round Table • Schein • PEST/PESTEL SWOT • Industry Attractiveness Analysis • Industry Life Cycle Updated Mission Statement • Drucker Strategy & Objectives • • • • • • Strategic Groups Clustering Porter Five Forces Model Stakeholder Analysis Product Market Life Cycle Market Structure Analysis Consumer Analysis • • • • • • BCG Matrix Ansoff Matrix Directional Policy Matrix (DPM) Value Chain: Porter Performance Gap Analysis Resource Based View • Corporate level: Freeman.

/Unit Structure Key Issues Corporate Culture Strategy SBU BSC Strategy Map & Balanced Scorecard Strategy Map & Balanced Scorecard Strategic Responses Corporate Structure SBU Budget Operational Budgets Corporate BSC Strategy Map & Balanced Scorecard Corporate Budget .Mission – Vision-Values SWOT Analysis Updated Mission Statement Corporate Strategy & Objectives SBU Strategy & Objectives Operational Strategies & Objectives External Environment If needed Business Portfolio Strategy Product Market Portfolio Strategy Operational Strategies Internal Environment Corporate Business Model Business Model(s) Operational Model(s) Key factors for Success (KFS) Enterprise Strategy SBU Structure Dept.

The Strategic Management Process .

Strategy .

Contemporary Management 2nd edition. L.. J. Philippines: McGraw-Hill Irwin. Irwin McGraw-Hill Thomas S. Jones. Bateman and Scott A. Management 8th edition. Snell. and Charles W. McGraw-Hill Irwin Thompson. Jennifer M. Pearson Prentice Hall Gareth R. 2010. Robbins and Mary Coultier. Crafting and Executing Strategy: Text and Readings 17th Edition. Arthur A. . South-Western Stephen P. International Ed. Management 9th edition. Print. Hill. Gamble. Management Principles Philippine Edition 2009. A. Strickland III. and John E. George.References Robert Kreitner.

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