Professional Documents
Culture Documents
Management
An Introduction to Strategy
2
A definition of strategy
3
Military influences in strategy
4
Academic influences in strategy
5
Recent influences in strategy
6
Why is strategic management
important?
7
Why Strategy?
8
Strategy vs. Strategic
Management
Strategy Strategic
A series of goal- management
directed decisions Analyze current
and actions situation
matching an Develop
organizations appropriate
skills and strategies
Put strategies into
resources with the
opportunities and action
Evaluate, modify,
threats in its
environment or change
strategy
9
Strategy vs. Strategic
Management
Strategy involves Strategic
Organizations management
goals Planning
Goal-oriented
Organizing
action
Related decisions Implementing
10
Basics of Strategic
Management
Four aspects that set strategic
management apart
Interdisciplinary
Capstone of the Business degree
External focus
Competition
Internalfocus
Future direction
11
Strategic Management
Process
Analyzing Deciding Putting Evaluating and
Current on Strategies Changing
Situation Strategies in Action Strategies
Situation Strategy Strategy Strategy
Analysis Formulation Implementation Evaluation
External
Analysis
Chapter 2 Chapter 3 Functional Competitive
Chapter 5 Chapter 6
Internal
Analysis Corporate
Chapter 4 Chapter 7
12
Strategic Management
Process
Situation Analysis
Scanning & evaluating context
Internal and External environments
Strategy formulation
Functional
Competitive
Corporate strategies
13
Levels of strategy
Corporate
What direction are we going and
what business(es) are we in or do we
want to be in?
Competitive:
How are we going to compete in
our chosen business(es)?
Functional
What resources and capabilities do
we have to support the corporate and
competitive strategies?
14
Strategic Management
Process
Strategy implementation
Process of putting strategies into
action
Consider implementation at each level
Strategy evaluation
Was the strategy effective?
Close the loop
15
Who does strategy?
16
The Role of the Board of
Directors
Review and approve strategic goals and plans
Review and approve organization's financial
standards and policies
Approve an organizational philosophy
Monitor organizational performance and
regularly review performance results
Select, evaluate, and compensate top-level
managers
Develop management succession plans
Monitor relations with shareholders and other
key stakeholders
17
Who is on the board of
directors?
Chairman of the board
Chief Executive officer (CEO)
President
Chief Operating officer (COO)
Other Cs
Chief Financial officer
Chief Information officer
Inside board members
Outside board members
18
The Role of Top
Management
Determining
Organizational
Purpose or Vision
Effective
Strategic
Leadership
Developing
Emphasizing Human Capital
Ethical Decisions
and Practices Creating and
Sustaining Strong
Organizational Culture
19
Strategic Management
Principle
Effective strategy-making
begins with a vision of where
the organization needs to
head!
20
Elements of a Strategic Vision
22
Characteristics of a
Mission Statement
Company specific, not generic so
as to give a company its own identity
A companys mission is not to
make a profit !
The real mission is alwaysWhat
will we do to make a profit?
23
Examples of Missions
Microsoft
Corporation
Otis Elevator
28
Communicating the Vision
29
Value of a Well-Conceived
Strategic Vision and Mission
30
Concept of Strategic Intent
31
Lessons about change: Built
to last
Understand why superior companies
are better than peer companies which
are better than most companies
$1 invested in stock market in 1926
yields
$420 in all other companies
$960 in peer companies
$6360 in superior (visionary) companies
32
Who are these companies
Visionary Peer companies
3M Norton
Boeing McDonnell Douglass
GE
Westinghouse
IBM
Burroughs
Zenith
Motorola
Melville
Nordstrom
Colgate
P&G Kenwood
Sony Ames
Wal-mart
33
So what did they find?
Great companies had BHAG
Big Hairy Audacious Goals
What ever your values are stick with
it
Deal with the AND, not the OR
34
Characteristics of Strategic
Intent
35
Example of BHAG
General Electric
All businesses are held to a standard of
being #1 or #2 in their industries as well
as achieving good business results
John F. Kennedy
Put a man on the moon and return safely
by the end of the decade
36
Crafting a Strategy
An organizations strategy deals with
How to make the strategic vision a reality
and achieve target objectives
The game plan for
Pleasing customers
Conducting operations
Building a sustainable competitive advantage
37
Take Aways
Strategy has become more important
Information, technology, globalization
Key ideas in the strategy making process
Mission (who are we)
Vision (where do we want to go)
Strategic intent / BHAG (major goal)
Strategy (specific plan at different levels)
Ethics (code of conduct or values)
Next week
Read Airline Simulation Book (1-35)
Bring Laptop
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