Professional Documents
Culture Documents
UNIT: 1
THE STRATEGIC
MANAGEMENT
PROCESS
“Quote”
Conduct operations
Compete successfully
St
r a teg
i nes
s del
s amply profitable and
u
B o
M
viable
Provide
Provide technical
technical support
support to
to users
users at
at no
no cost
cost
Use
Use volunteer
volunteer programmers
programmers to
to create
create the
the software;
software;
make
make source
source code
code open
open and
and
available
available to
to all
all users
users
Give
Give Linux
Linux operating
operating system
system away
away free
free of
of charge
charge to
to
those
those who
who download
download itit (charge
(charge aa small
small fee
fee to
to users
users
who
who want
want aa copy
copy on
on CD)
CD)
Make
Make money
money by by employing
employing aa cadre
cadre of
of technical
technical
support
support personnel
personnel whowho provide
provide technical
technical support
support to
to
users
users for
for aa fee
fee
Develop a Monitor,
Craft a Implement
Strategic Evaluate,
Set Strategy and
Vision and Take
Objectives to Achieve Execute
and Corrective
Objectives Strategy
Mission Action
Microsoft Corporation
Empower people
through great software
anytime, anyplace, and
on any device.
Intel
Otis Elevator
Our mission is to provide any customer a means
of moving people and things up, down, and
sideways over short distances with higher
reliability than any similar enterprise in the world.
Avis Rent-a-Car
Our business is renting cars. Our mission is total
customer satisfaction.
McGraw-Hill/Irwin DR. MANOJ© 2003
W.TheMEGHRAJANI
McGraw-Hill Companies, Inc., All Rights Reserved. 20
Examples: Mission and Vision Statements
3Com
Ritz-Carlton Hotels
Eastman Kodak
We are in the picture business.
Wit Capital
(an Internet startup company)
Domino’s Pizza
To safely deliver a hot, quality
pizza in 30 minutes or less at a fair
price and a reasonable profit.
McGraw-Hill/Irwin DR. MANOJ© 2003
W.TheMEGHRAJANI
McGraw-Hill Companies, Inc., All Rights Reserved. 30
Example: Strategic Objectives
Alcan Aluminum
Atlas Corporation
To become a low-cost, medium-size gold
producer, producing in excess of 125,000 ounces
of gold a year and building gold reserves of
1,500,000 ounces.
McGraw-Hill/Irwin DR. MANOJ© 2003
W.TheMEGHRAJANI
McGraw-Hill Companies, Inc., All Rights Reserved. 32
Example: Strategic Objective
3M Corporation
features
str ategy
ndoned
Aba
Company Planned Stra
t gy e
Experiences, New initiativ
e s pl us o ng
strategy fea oi ng
Know-how, tures contin
u ed
Resource from prior p
eriods Actual
Strengths and Company
Weaknesses, Strategy
and ti o n s to
v e rea c
Ada p ti ta n ces
Competitive c ircu m s
g i n g
Capabilities c ha n
St r at egy
e
Reactiv
Aggressively
Rapid Keep from being
altering strategy to
Revolutionary swamped by the
Change make waves and
waves of change
drive change
Anticipating
Revising strategy
change and
Gradual (hopefully in time)
Evolutionary initiating strategic
to catch the waves
Change actions to ride the
of change
crest of change
Source: Adapted from Derek F. Abell, “Competing Today While Preparing for Tomorrow,” Sloan Management Review 40, No. 3 (Spring 1999), p. 75.