TM1 - PPT - 01 - Strategic Management Essentials
TM1 - PPT - 01 - Strategic Management Essentials
TM1 - PPT - 01 - Strategic Management Essentials
ESSENTIALS
n STAGES
n KEY TERMS
n MODELS
n BENEFITS
n BUSINESS vs. MILITARY
n Strategy formulation
n Strategy implementation
n Strategy evaluation
Long-Term Objectives
Alternative Strategies
Strategy Selection
üBusinesses to enter
üBusinesses to abandon
üAllocation of resources
üExpansion or
diversification
üInternational markets
üMergers or joint
ventures
üAvoidance of hostile
takeover
Annual Objectives
Devise Policies
Employee Motivation
Resource Allocation
n Preparing budgets
üMobilization of
employees & managers
Commitment ,
üMost difficult stage
üInterpersonal skills
critical
Sacrifice
Successful
strategy implementation
hinges upon managers’
ability to motivate
employees,
which is more
an art than a science.
Copyright © 2011 Pearson Education, Inc. Ch 1 -19
Publishing as Prentice Hall
“What must we
Strategy Implementation
do to implement our
part of
the organization’s
Every division strategy?”
and
department
must decide
on answers
to questions,
such as;
Copyright © 2011 Pearson Education, Inc. Ch 1 -20
Publishing as Prentice Hall
Strategy Implementation
“How best can we
get the job
done?”
+ =
Performance Measurement
Selling Selling
on credit in cash
Taking Corrective Action
logical, systematic
approach for
q Feelings
q Little precedent
It is also helpful
“adept at dapting”
the only constant is
change.
Copyright © 2011 Pearson Education, Inc. Ch 1 -31
Publishing as Prentice Hall
The need to adapt to change leads organizations
to key strategic-management questions, such as;
“Are new technologies being developed that could put us out of business?”
n Competitive advantage
n Strategists
n Vision and mission statements
n External opportunities and threats
n Internal strengths and weaknesses
n Long-term objectives
n Strategies
n Annual objectives
n Policies
Copyright © 2011 Pearson Education, Inc. Ch 1 -33
Publishing as Prentice Hall
Strategic Management is
Gaining and Maintaining
Competitive Advantage
1. For example, newspaper circulation in the United States is steadily declining. Most
national newspapers are rapidly losing market share to the Internet, and other media
that consumers use to stay informed.(problem)
2. Daily newspaper circulation in the United States totals about 55 million copies
annually, which is about the same as it was in 1954. Strategists ponder whether the
newspaper circulation slide can be halted in the digital age.(is a must)
3. The six broadcast networks—ABC, CBS, Fox, NBC, UPN, and WB—are being
assaulted by cable channels, video games, broadband, wireless technologies,
satellite radio, high-definition TV, and digital video recorders.(Fact)
4. The three original broadcast networks captured about 90 percent of the prime-time
audience in 1978, but today their combined market share is less than 50 percent.
Copyright © 2011 Pearson Education, Inc. Ch 1 -35
Publishing as Prentice Hall
Achieving Sustained 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
q Economic
q Social
q Cultural
q Demographic/Environmental
q Political, Legal, Governmental
q Technological
q Competitors
Take advantage of
External Opportunities
Strategy Formulation
Avoid/minimize impact of
External Threats
q Controllable
activities performed
especially well or poorly
q Management
q Marketing
q Finance/Accounting
q Production/Operations
Ratios
Performance Measures
Internal Factors
Industry Averages
Survey Data
q Aid in evaluation
q Create synergy
q Reveal priorities
q Focus coordination
q Diversification
q Acquisition
q Product development
q Market penetration
q Retrenchment
q Divestiture
q Liquidation
q Joint venture
q Best Buy
q Levi Strauss
q StrategicManagement Process
q Dynamic & continuous
q More formal in larger
organizations
n Communication is a key to
successful strategic management
n Nonfinancial Benefits
q Enhanced awareness of threats
q Improved understanding of competitors’ strategies
q Increased employee productivity
q Reduced resistance to change
q Clearer understanding of performance-reward
relationship
q Enhanced problem-prevention capabilities
-Masters of Fighting
don’t get angry.
-Masters of
Winning don’t fear.
-Smarts win without
fighting.
-Ignorant fight to
(544-496 BC) win.
n For to win one hundred victories in one hundred battles is not the
acme of skill. To subdue the enemy without fighting is the supreme
excellence.