Strategic

Management

The Quest for Compe//ve Advantage

WHAT IS STRATEGY AND WHY IS IT IMPORTANT

Prepared by TITO FRED

Strategic Military vs Corporate

Terms

STRATEGY is all about

Winning and Defea/ng
the Enemies.

Military vs Corporate Terms

General CEO, COO, CFO, CMO

Ocers MANAGERS, SUPERVISORS
Army/Soldiers EMPLOYEES, WORKERS
Weapons PRODUCTS, SERVICES
ATack MARKET PENETRATION
Alliances JOINT VENTURE
Maneuver PRODUCT DIFFERENTIATION

Military vs Corporate Terms

Logis/cs CAPITAL, EQUITY, TECHNOLOGY

BaTleeld INDUSTRY, MARKET
Mapping MARKET POSITION
Enemies COMPETITORS, RIVALS
Intelligence PROJECTIONS, DATA ANALYSIS
Victory PROFITABILITY, MARKET LEADER
Defeat LOSS, BANKRUPTCY, CLOSURE

Why Learn Strategic Management

MANAGERIAL DECISION MAKING
Industry decision
Market decision
Action Plan decision

Star/ng Strategic Management

WHERE ARE WE NOW?
WHERE DO WE WANT TO GO?
HOW DO WE GET THERE?

COMPANY STRATEGY
ACTION PLAN running business & opera/on
BUSINESS MODEL (Blueprint)
Customer Value Proposi/on + Prot Formula
(approaches to sa/sfy customers + cost
structure)

BUSINESS MODEL
A management BLUEPRINT
to deliver valuable product/services to saIsfy
customers wants and need in a manner that
will generate revenues sucient to cover
costs and yield aPracIve prot.

What is Strategic Management?

A PROCESS
Developing Mission, Vision and Values
Se^ng Goals and Objec/ves
Cra`ing strategy to achieve objec/ves and to
move the company on its intended path
Execu/ng strategies
Monitoring development, evalua/ng
performance and ini/a/ng correc/ve
adjustments.

Winning Strategy
How well does the strategy t the
companys situaIon?
Is the strategy helping the company
achieve sustainable compeIIve
advantage?
Is the strategy producing good company
performance?

Five Generic Strategies

Broad Low-cost Provider Strategy
Broad DierenIaIon Strategy
Focused Low-cost Strategy
Focused DierenIaIon Strategy
Best Cost Provider Strategy

Elements of Companys Strategies

1.
2.
3.
4.
5.
6.
7.

AcIons to gain sales and market share.

AcIons to respond to changing market condiIons.
AcIons to enter new market or exit exisIng one.
AcIons to capture emerging market opportuniIes.
AcIons to strengthen market standing.
AcIons to strengthen compeIIveness.
AcIons & approaches used key acIviIes (producIon,
sales, markeIng, nance, R&D)
8. AcIons to upgrade, build, or acquire resources.

Why Strategy Evolves Over/me

Unexpected moves of compeItors

Shieing customers need and preferences
Merging market opportuniIes
New ideas for improving strategy
Present strategy needs adjustment
Change of industry condiIon
End of Lecture