Académique Documents
Professionnel Documents
Culture Documents
OVERVIEW
What is Strategy?
An action a company takes to attain superior performance.
Company
Experiences,
Know-how,
Resource
Actual
Strengths and Company
Weaknesses, Strategy
and
Competitive
Capabilities
Factors Shaping the Choice of
Company Strategy
Social, Competitive Company
political, conditions opportunities
regulatory and and industry and threats to
community attractiveness company’s External Factors
factors well-being
Determine
relevance Identify
Craft
of internal and
COMPANY’S STRATEGIC SITUATION the
and evaluate
strategy
external alternatives
factors
Resource
Shared
strengths, Influences of
values and
Internal Factors
capabilities, key
and company
executives
weaknesses culture
Strategy as an Emergent Process
• Group-based strategic decisions are likely to be drawn from the best available
alternatives.
• Gaps and overlaps in activities among individuals and groups are reduced as
participation in strategy formulation clarifies differences in roles.
R • The time that managers spend on the strategic management process may
have a negative impact on operational responsibilities.
I
• If the formulators of strategy are not intimately involved in its implementation,
S they may shirk their individual responsibility for the decision reached.
K • Strategic managers must be trained to anticipate and respond to the
S disappointment of participating subordinates over unattained expectations.
Key Attributes of
STRATEGIC MANAGEMENT
STRATEGIC ISSUES
require top-management decisions
require large amounts of the firm’s resources
often affect the firm’s long-term prosperity
are future oriented
usually have multifunctional or multi-business consequences
require considering the firm’s external environment
Develop
• •Formulate • Monitor,
Vision and Strategy to Evaluate, and
Mission Achieve Goals Take
& Objectives Corrective
Action
Revise as Needed
Recycle as Needed
Improve/Change
Improve/Change
Revise as Needed
MISSION
This is the fundamental purpose that sets a firm apart from other
firms of its type and identifies the scope of its operations in product
and market terms.
It sets out why the organization exists and what it should be doing.
VISION
Feedback / Learning
ENVIRONMENTAL SCANNING
External:
Societal, Technological, economic, regulatory, competitive
environment- PEST analysis ETOP analysis
Industry Analysis- Porter’s Model, Strategic groups
Internal:
Organizational Capability analysis- SWOT, TOWS matrix, Value Chain
analysis Organization Structure
Culture (Belief, expectation, Values)
Resources (Assets, skills, competencies, knowledge)
STRATEGY FORMULATION
MISSION
Reason for
existence
OBJECTIVES
What to accomplish
STRATEGIES
Plan to achieve
the mission &
objective
POLICIES
Broad guidelines for
decision making
BUDGETS
Cost of the program
PROCEDURES
Sequence of steps
needed to do the job
2. Business-Level Strategy
Business-Level Strategy
Division/business unit/product level