Professional Documents
Culture Documents
THE STRATEGIC
MANAGEMENT
PROCESS
Screen graphics created by:
Jana F. Kuzmicki, PhD, Mississippi University for Women
“Quote”
Conduct operations
Compete successfully
St
ra
t eg
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 © 2003 The McGraw-Hill Companies, Inc., All Rights 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 © 2003 The McGraw-Hill Companies, Inc., All Rights 31
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 © 2003 The McGraw-Hill Companies, Inc., All Rights 33
Example: Strategic Objective
3M Corporation
t r at e gy
n ed s
o
Aband atures
fe
Company Planned Stra
tgy e
Experiences, New initiativ
es plus ong
strategy fea oing
Know-how, tures contin
u ed
Resource from prior p
eriods Actual
Strengths and Company
Weaknesses, Strategy
and t io n s to
ve rea c
Ada p ti ta n ces
Competitive c ircum s
gin g
Capabilities c han
S tr ate gy
e
Reactiv
McGraw-Hill/Irwin
partnerships
© 2003 The McGraw-Hill Companies, Inc., All Rights 40
Strategic Priorities of McDonald’s
Continued growth
Providing exceptional customer care
Remaining an efficient and quality producer
Developing people at every organizational level
Sharing best practices among all units
Reinventing the fast food concept by
fostering innovation in the menu, facilities,
marketing, operation, and technology
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights 41
Core Elements of
McDonald’s Strategy
Add 1750 restaurants annually
Promote frequent customer visits via attractive
menu items, low-price specials, and Extra Value
Meals
Be highly selective in granting franchises
Locate on sites offering convenience to customers
and profitable growth potential
Focus on limited menu and consistent quality
Careful attention to store efficiency
Extensive advertising and use of Mc prefix
Hire courteous personnel; pay an equitable wage;
provide good training
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights 42
Crafting Strategy is an
Exercise in Entrepreneurship
Strategy-making is a market-driven
and customer-driven activity that
involves
Keen eye for spotting emerging
market opportunities
Keen observation of customer
needs
Innovation and creativity
Prudent risk-taking
Strong sense of how to grow
and strengthen business
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights 43
Characteristics of Managers with
Good Entrepreneurial Skills
Boldly pursue new strategic opportunities
Aggressively
Rapid Keep from being
Revolutionary altering strategy to
swamped by the
Change make waves and
waves of change
drive change
Anticipating
Revising strategy
Gradual change and
(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.