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Strategic Management

Strategic Management

Strategic Management
Adopts total enterprise perspective Positioning for the future Focus on performance Integrates functional areas Leveraging resources & capabilities Develop skills using CASES.

Strategy Process
Setting Direction External Analysis Internal Analysis Strategic Choice Improving Performance Trends & Issues in Strategic Mngt

Skills Developed with Cases

Analytical skills Decision Making skills Application skills Communication skills Time Management skills Interpersonal skills Creative skills

Study Teams
Used in class & for coursework 5 students in each team YOU choose your team THIS week Look for compatible goals Need a range of skills & majors WE assign & finalise teams NEXT week

Advice from past students

Choose your study team carefully Get in a good team with the same goals - like minded, intelligent Make sure your team has different majors Do the readings Start the cases early

Assessment
Strategy in Practice Test 25% 25%

Exam
Total

50%
---------100% ======

The I/O Model

Assumptions
The external environment has a big influence on strategies and their success Firms in any industry are similar Markets exist for resources used by firms and allow those resources to be highly mobile Profit-maximization is the aim of firms

I/O Model Process

1. 2. 3. 4. Study the environment Select an industry Select the right strategy Acquire/develop appropriate resources 5. Successfully implement the strategy

The Resource-Based Model

Assumptions
The firms internal resources have a big influence on strategies and their success Firms in any industry are different Markets for resources are sometimes imperfect leading to immobile resources Profit-maximization is the aim of firms

Resource-Based Process
1. 2. 3. 4. Study the firms resources Determine the firms capabilities Identify competitive advantage Locate and compete in an attractive industry 5. Select the right strategy and successfully implement

Vision
What the firm wants to be and what it wants to achieve
McDonalds to be the worlds best quick service restaurant Ford (originally) to make the automobile accessible to every American

Which do you think is better? Why?

Mission
Identifies the businesses a firm will compete in and the customers it will serve Often includes values
Walt Disney: To make people happy Wal-Mart: To give ordinary folk the chance to buy the same things as rich people