Crafting a Corporate Strategy

Download Crafting a Corporate Strategy

Post on 08-Aug-2018

212 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

<ul><li><p>8/22/2019 Crafting a Corporate Strategy</p><p> 1/2</p><p>Crafting a Corporate Strategy</p><p>Does the Company have enough businesses in very attractive industries?</p><p>Will the proportion of mature or declining businesses cause corporate growth</p><p>to be sluggish?</p><p>Are the companys businesses overly vulnerable to seasonal or recessionary</p><p>influences or to threats from emerging new technologies?</p><p>Does the firm have enough cash cows to finance cash hogs with potential to</p><p>be star performers?</p><p>Does the make up of the business portfolio put the company in good position</p><p>for the future?</p><p>The Performance Test</p><p> Alter the strategic plans for some or all of the businesses in the</p><p>portfolio.</p><p> Add new business units to the corporate portfolio.</p><p> Divest weak-performing or money-losing businesses.</p><p> Form cooperative alliances to try to alter conditions responsible for</p><p>subpar performance potentials.</p><p> Upgrade the companys resource base.</p><p> Lower corporate performance objectives.</p><p>Identifying Additional Diversification Opportunities</p><p> Firms with unrelated diversification strategies - HUNT for ATTRACTIVE</p><p>financial returns .</p><p> Firms with related diversification strategies - GO for ATTRACTIVE</p><p>industries with GOOD strategic or resource fit.</p><p>Managing the Process of Crafting Corporate Strategy</p><p>Building Resource Strengths and Organizational</p><p>Capabilities</p><p>The managers task is to convert the strategic plan into action and get on</p><p>with what needs to be done to achieve the vision and targeted objectives.</p><p>A Framework for Executing Strategy</p></li><li><p>8/22/2019 Crafting a Corporate Strategy</p><p> 2/2</p><p> Every MANAGER has an active role in the process of executing the</p><p>firms strategic plan and all employees are PARTICIPANTS.</p><p> Managing strategy implementation is more art than science</p><p>The Principal Strategy-Implementing Tasks The Strategy Implementers Action Agenda:</p><p> What to do now vs. later</p><p> What requires much time and personal attention</p><p> What can be delegated to others</p><p> Building an organization with the competencies, capabilities, and</p><p>resource strengths needed for successful strategy execution</p><p> Allocating ample resources to strategy-critical activities</p><p> Establishing strategy supportive policies</p><p> Instituting best practices and pushing for continuous improvement Installing info, communication, and operating systems that enable</p><p>company personnel to better carry out their strategic roles proficiency</p><p> Tying rewards and incentives to the achievement of key strategic</p><p>targets</p><p> Shaping the work environment and corporate culture to fit the strategy</p><p> Exercising the strategic leadership needed to drive implementation</p><p>forward</p></li></ul>