bus policy chpter 1

Upload: chatterly-ignacio

Post on 07-Aug-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/20/2019 Bus Policy Chpter 1

    1/29

    1

    CHAPTER-01

    BASIC CONCEPTS OFSTRATEGIC MANAGEMENT

    (SM)

    ALMA.SHAMEEM

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    2/29

    2

    Learning Objectives

    After st!"ing t#is c#a$ter% "& s#&'! be ab'e t& !& t#ef&''&ing

    • Defne the term strategic management (SM• Descri!e the SM "r#cess.• E$"lain the nee% r integrating analysis an% intuiti#n in

    strategic management.• E$"lain the !enefts #& strategic management.• E$"lain the im"acts #& 'l#!aliati#n an% E)c#mmerce #n SM.• Descri!e the the#ry #& learning #rganiati#n.• E$"lain the !asic m#%el #& SM.• Discuss the !asic m#%el #& SM* +he nature #& strategy

    rmulati#n, im"lementati#n, an% ealuati#n actiities.• Descri!e the strategic %ecisi#n ma-ing m#%el.• Discuss h# a frm may achiee sustaine% c#m"etitie

    a%antage.

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    3/29

    /

    Strategic Manage*ent

    • SM is that set #& managerial

    %ecisi#ns an% acti#ns that%etermines the l#ng run "errmance#& a c#m"any.

    • H# %#es a c#m"any !ec#mesuccess&ul an% stay success&ul

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    4/29

    + P#ases in t#e Ev&'ti&n &f StrategicManage*ent ,+ T"$es &f Strategic

    Manage*ent

    1. asic fnancial "lanning 3 internal cus #n!u%geting (1 yr h#ri#n

    2. 4#recast)!ase% "lanning 3 e$tra"#late thecurrent situati#n int# the &uture (/)5 yr h#ri#n

    /. E$ternally)#riente% "lanning 3 "lanning%e"artment an%#r c#nsultants %eel#" a t#")%#n strategy ith n# l#er leel in#lement.

    . Strategic management 3 in#les ari#us

    %e"artments an% leels acr#ss the #rganiati#n.An #ng#ing "r#cess that inclu%esim"lementati#n, ealuati#n an% c#ntr#l issues.

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    5/29

    5

    Bene-ts &f SM

    6ey 7uesti#ns

    8 9here is the #rganiati#n n#

    8 :& n# changes are ma%e, here ill the#rganiati#n !e in 1, 2, 5 #r 10 years

    8 9hat s"ecifc acti#ns sh#ul%management un%erta-e

    8 9hat are the ris-s an% "ay#;s

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    6/29

    <

    Benefits of SM

    Why need Strategic Management?

    • Clearer sense of strategic vision

    • Sharper focus on strategic importance

    • Improved understanding of changing

    environment

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    7/29

    =

    Bene-ts &f SMF&''&ing are t#e *aj&r bene-ts &f Strategic

    *anage*ent• >r#actie in sha"ing frm?s &uture• :nitiate an% in@uence acti#ns• 4#rmulate !etter strategies (Systematic, l#gical, rati#nal

    a""r#ach

    Financia' bene-ts

    • :m"r#e% "r#%uctiity• :m"r#e% sales• :m"r#e% "r#fta!ility

    N&n.Financia' bene-ts• :ncrease% em"l#yee "r#%uctiity

    • :m"r#e% un%erstan%ing #& c#m"etit#rs? strategies• 'reater aareness #& e$ternal threats• n%erstan%ing #& "errmance rear% relati#nshi"s• etter "r#!lem)a#i%ance•  Lesser resistance t# change

  • 8/20/2019 Bus Policy Chpter 1

    8/29

    B

    G'&ba'i/ati&n 0 E.C&**erceC#a''enges t& SM

    • :m"act #& 'l#!aliati#n

     – :nternati#naliati#n #& mar-ets C c#r"#rati#ns

     – Mar-ets* gl#!al than nati#nal mar-ets

    • :m"act #& Electr#nic #mmerce

     – :nternet t# c#n%uct !usiness transacti#ns

     – asis r c#m"etiti#n #n a m#re strategic leel ratherthan tra%iti#nal cus #n "r#%uct &eatures an% c#sts

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    9/29

    Theories of Organizational

    Adaptation

      >#"ulati#n Ec#l#gy s. :nstituti#nal +he#ry

      (an?t hange (Mimic success&ul#rganiati#ns

    Strategic h#ice >ers"ectie(Management %ecisi#ns hae at

    least as much im"act as in%ustry &act#rs

    Frganiati#nal Learning +he#ry

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    10/29

    10

    Creating LearningOrgani/ati&n (LO)

    • LF is s-ille% at creating, acGuiringan% trans&erring -n#le%ge an%m#%i&ying its !ehai#r t# re@ect ne

    -n#le%ge an% insight.

    • 1e" Activities – S#le "r#!lems systematically

     – E$"eriment ith ne a""r#aches – Learn &r#m e$"erience

     –  +rans&er -n#le%ge thr#ugh#ut the #rganiati#n

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    11/29

    11

    Basic Model of SM

    • Four Basic Elements

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    12/29

    12

    T#e ter* se! in $revi&s s'i!e are e2$'aine! #ere3

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    13/29

    1/

    43Envir&n*enta'Scanning

    • M#nit#ring, ealuati#n, an%%isseminating inrmati#n &r#me$ternal an% internal enir#nments 3

    t# -ey "e#"le in the frm

    S5OT Ana'"sis

    8 Strengths 3 9ea-nesses

    8 F""#rtunities 3 +hreats

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    14/29

    1

    43 Envir&n*enta' Scanning

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    15/29

    15

    63 Strateg" F&r*'ati&n

    • Development oflong-range plans for

    eectivemanagement ofopportunities andthreats in light of

    corporate strengthsand weaknesses

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    16/29

    1<

    63Strateg" F&r*'ati&n

    7isi&n state*ent

    • “Vision is the art of seeing thingsinvisible” 

     J#nathan Si& 

    Missi&n State*ent8 >ur"#sereas#n r #rganiati#n

    8 >r#m#tes share% e$"ectati#ns8 #mmunicates "u!lic image

    8 9h# e are hat e %# hat e as"ire t#

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    17/29

    1=

    63Strateg" F&r*'ati&n

    C&r$&rate G&a's,Objectives 8& fr&* t#e Missi&n,7isi&nstate*ent

    • >r#fta!ility (net "r#ft• 'r#th• Ies#urce utiliati#n (IFE, IF:

    • Mar-et lea%ershi"

    C&r$&rate G&a's,Objectives nee! t& be

    • S"ecifc• Measura!le

    • Acti#n #riente%• Iealistic•  +iming is i%entife%

    SMART Goals

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    18/29

    1B

    63 Strateg" F&r*'ati&n

    • Selecting Strateg , 9ierarc#" &fStrateg"

     – Corporate strategy Sta!ility" #ro$th"

    %etrenchment&

     – Business strategy Competitive" Cooperative&

     – Functional strategy 'echnological

    (eadership" 'echnological Follo$ership&

    • !efining Policies – #uidelines for decision ma)ing that lin)s formulation

    to implementation

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    19/29

    1

     

    :3 Strateg"I*$'e*entati&n

    >r#cess !y hich strategies an%"#licies are "ut int# acti#n thr#ugh%eel#"ment #& "r#grams an%

    "r#ce%ures July 2, 2015

    Strateg"I*$'e*entati&n

    Pr&gra*s

    B!gets

    Pr&ce!res

  • 8/20/2019 Bus Policy Chpter 1

    20/29

    20

     :3 Strateg"I*$'e*entati&n

    • >r#grams 3 single use "lans ("r#ects

    • u%gets 3 c#sts ass#ciate% ith a"r#gram

    • >r#ce%ures 3 system #& seGuentialste"s that %escri!e h# a "articulartas- #r #! is t# !e %#ne

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    21/29

    21

    +3Eva'ati&n an! C&ntr&'

    • >r#cess !y hich c#r"#rate actiitiesan% "errmance results are m#nit#re%s# that actual "errmance can !e

    c#m"are% ith %esire% "errmance.

    Fee!bac;,Learning Pr&cess

    • Must g# !ac- t# reise #r c#rrect%ecisi#ns ma%e earlier.

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    22/29

    22

    Triggering Events

    • Ke EF

    • E$ternal :nterenti#n

    •  +hreat #& change in #nershi"• >errmance 'a"

    • Strategic in@ecti#n "#int (in%ustry

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    23/29

    2/

    Strategic

  • 8/20/2019 Bus Policy Chpter 1

    24/29

    2

    Mint/berg=s M&!es &fStrategic lanning m#%e 3 systematic gathering an%analysis #& inrmati#n

    8 L#gical incrementalism 3 interactie strategy%eel#"ment (>lanning N A%a"tie

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    25/29

    25

     M&!e'

     July 2, 2015

    S i < i i M ;i

  • 8/20/2019 Bus Policy Chpter 1

    26/29

    2<

    Strategic

  • 8/20/2019 Bus Policy Chpter 1

    27/29

    2=

     E'e*ents &f G&&! Strateg"

    1. Arenas 3 9here

    1. Oehicles 3 H# t# get there

    1. Di;erentiat#rs 3 H# t# in

    1. Staging 3 S"ee% an% seGuence 3 tactics

    1. Ec#n#mic l#gic 3 H# ill e gain a return

     July 2, 2015

  • 8/20/2019 Bus Policy Chpter 1

    28/29

    1e" Reference

    • ha"ter 01)J Dai% Hunger an% +h#mas L 9heelan, StrategicManagement an% usiness >#licy

    (10th E%iti#n, A%%is#n 9esleyLingman :nc.

     July 2, 2015 2B

  • 8/20/2019 Bus Policy Chpter 1

    29/29

    2

     +han- P#u

     

    ha"ter I#un%u" an%Discussi#ns

     July 2, 2015