Professional Documents
Culture Documents
Strategic Management:
Concepts & Cases
13th Edition
Fred David
◼ Strategy formulation
◼ Strategy implementation
◼ Strategy evaluation
Long-Term Objectives
Alternative Strategies
Strategy Selection
✓Businesses to enter
✓Businesses to abandon
✓Allocation of resources
✓Expansion or
diversification
✓International markets
✓Mergers or joint
ventures
✓Avoidance of hostile
takeover
Annual Objectives
Policies
Employee Motivation
Resource Allocation
✓Mobilization of
employees & managers
✓Interpersonal skills
critical
Internal Review
External Review
Performance Measurement
Corrective Action
❑ Judgment
❑ Feelings
❑ Little precedent
❑ Highly interrelated variables
◼ Competitive advantage
◼ Strategists
◼ Vision and mission statements
◼ External opportunities and threats
◼ Internal strengths and weaknesses
◼ Long-term objectives
◼ Strategies
◼ Annual objectives
◼ Policies
Copyright © 2011 Pearson Education, Inc. Ch 1 -17
Publishing as Prentice Hall
Strategic Management is
Gaining and Maintaining
Competitive Advantage
Gather Information
Analyze Information
Organize Information
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
Analysis of Trends
❑ Economic
❑ Social
❑ Cultural
❑ Demographic/Environmental
❑ Political, Legal, Governmental
❑ Technological
❑ Competitors
Take advantage of
External Opportunities
Strategy Formulation
Avoid/minimize impact of
External Threats
❑ Controllable
activities performed
especially well or poorly
❑ Management
❑ Marketing
❑ Finance/Accounting
❑ Production/Operations
Ratios
Performance Measures
Internal Factors
Industry Averages
Survey Data
❑ Aid in evaluation
❑ Create synergy
❑ Reveal priorities
❑ Focus coordination
❑ Diversification
❑ Acquisition
❑ Product development
❑ Market penetration
❑ Retrenchment
❑ Divestiture
❑ Liquidation
❑ Joint venture
❑ Best Buy
❑ Levi Strauss
❑ StrategicManagement Process
❑ Dynamic & continuous
◼ Communication is a key to
successful 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