05 - technological strategy ii

5/23/2018 05 - Technological Strategy II

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PowerPoint Presentation by Charlie Cook

The Environment of Managing

Gary Dessler

Principles and Practices for Tomorrows Leaders

Copyright 2004 Prentice Hall, Inc. All rights reserved.

Strategic Management

5CHAPTER


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Copyright 2004 Prentice Hall. All rights reserved. 52

Technology Strategy (2) ObjectivesAfter studying this chapter and the case exercises at

the end, you should be able to:

1. Develop a workable strategic plan for an

organization using SWOT analysis.

2. Identify a companys current corporatestrategies, and list its strategic options.

3. Develop a vision and mission statement.

4. Accurately identify a companys core

competence.

5. Explain each of the strategic planning tools

you think the CEO should use, and why.


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Checklist 5.1

The Strategic Management Process

Define the business and its mission.

Perform external and internal audits.

Translate the mission into strategicgoals.

Generate and select strategies to

reach strategic goals. Implement the strategy.

Evaluate performance.


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A Comprehensive Strategic-Management Model

FIGURE 51Source: Adapted from Fred David, Strategic Management(Upper Saddle River, NJ: Prentice-Hall, 2001), p. 77.


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Examples of Mission Statements

FIGURE 52

APEX ELEVATOR

To provide a high-reliability, error-free method for moving people andproducts up, down, and sideways within a building.

UNITED TELEPHONE CORPORATION OF DADE

To provide information services in local-exchange and exchange-access

markets within its franchised area, as well as cellular phone and paging

services.

JOSEPHSON DRUG COMPANY, INC.

To provide people with longer lives and higher-quality lives by applying

research efforts to develop new or improved drugs and health-care

products.

GRAY COMPUTER, INC.

To transform how educators work by providing innovative and easy-to-use

multimedia-based computer systems.


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Copyright 2004 Prentice Hall. All rights reserved. 56FIGURE 53

Strategies in Brief

Source: Arit Gadiesh and James Gilbert, Frontline Action, Harvard Business Review, May 2001, p. 74.

COMPANY STRATEGIC PRINCIPLE

America Online Consumer connectivity firstanytime, anywhere

Dell Be direct

eBay Focus on trading communities

General Electric Be number one or number two in every

industry in which we compete, or get out

Southwest Airlines Meet customers short-haul travel needs at fares

competitive with the cost of automobile travel

Vanguard Unmatchable value for the investor-owner

Wal-Mart Low prices, every day


7/20Copyright 2004 Prentice Hall. All rights reserved. 57

Checklist 5.2

How to Test the Quality of Your Strategy

Does your strategy fit with whats going on in the

environment?

Does your strategy exploit your key resources?

Will competitors have difficulty keeping up withyou?

Are the elements of your strategy internally

consistent?

Do you have enough resources to pursue this

strategy?

Can your strategy be implemented?



FIGURE 54

Relationships Among Strategies in

Multiple-Business Firms



FIGURE 55

Forces Driving Industry Competition

Source: Source: Reprinted with the permission of The Free Press, a division of Simon & Schuster from Competitive

Strategy: Techniques for Analyzing Industries and Competitorsby Michael E. Porter. Copyright 1980 by The Free Press.



FIGURE 56

How the Internet

Influences

Industry Structure

Source: Adapted from Michael Porter, Strategy and the

Internet, Harvard Business Review, March 2001, p. 67.


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Examples of a Companys Strengths, Weaknesses,

Opportunities, and Threats


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Worksheet for

Environmental

Scanning


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Checklist 5.3

How to Benchmark

Focus on a specific problem and define it

carefully

Use employees who will actually implement

changes to identify the best-practicescompanies and to conduct on-site studies.

Be willing to share information with others.

Avoid sensitive issues such as pricing, anddont look for new product information.

Keep information you receive confidential.


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FIGURE 59

Cineplex

Odeon

TOWSMatrix

Source: Fred David, Strategic Management(Upper

Saddle River, NJ: Prentice-Hall, 2001), p. 207.


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FIGURE 510

BCG Matrix


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Checklist 5.4

Scenario Planning Principles

Scenarios inform decision makers and

influence decision making.

Scenarios add value to decision makingonly when managers and others use

them.

In developing scenarios, the emphasis is

on improving managers mindsets and

knowledge.


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Checklist 5.4 (contd)


Alternative projections must challenge

managers current mental models.

The consideration of alternative futures

directly affects managers knowledge.

Scenarios must include indicators so

that managers can track how the future is

evolving.


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Checklist 5.4


Scenarios have value only to the extent that

they inform decision makers and influence

decision making.

Scenarios add value to decision making onlywhen managers and others use them to

systematically shape questions about the

present and the future, and to guide how to go

about answering them.

In each step of developing scenarios, the

emphasis must be on identifying, challenging,

and refining the substance of managers

mindsets and knowledge.


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Checklist 5.4 (contd)


Alternative projections about a given future

must challenge managers current mental

models by creating tension among ideas,

hypotheses, perspectives, and assumptions.

The dialogue and discussion spawned by the

consideration of alternative futures should

directly affect managers knowledge.

Scenarios should include enough indicators sothat managers can track how the future is

actually evolving so that the learning and

adaptations stimulated by the scenarios are

continuous.


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FIGURE 511

Southwest

Airlines

ActivitySystem

Source: Reprinted by permission of Harvard Business Review. From What Is Strategy? by Michael E. Porter,

NovemberDecember 1996. Copyright 1996 by the President and Fellows of Harvard College; all rights reserved.

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