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Chapter 1 The Nature of Strategic Management.ppt

1、Copyright 2007 Prentice Hall,Ch 1 -1,Chapter 1 The Nature of Strategic Management,Strategic Management: Concepts & Cases 11th Edition Fred David,Copyright 2007 Prentice Hall,Ch 1 -2,Themes in the Text,Global Considerations impact virtually all strategic decisionsE-commerce vital strategic management

2、 tool Natural environment important strategic issue,Copyright 2007 Prentice Hall,Ch 1 -3,Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives,Strategic Management Defined,Copyright 2007 Prentice Hall,Ch 1 -4,Stra

3、tegic Management,In essence, the strategic plan is a companys game plan,Copyright 2007 Prentice Hall,Ch 1 -5,Strategic Management achieves a firms success through integration ,Management,MIS,Production/Operations,Finance/Accounting,Marketing,Research & Development,Copyright 2007 Prentice Hall,Ch 1 -

4、6,Vision & Mission,Strategy Formulation,External Opportunities & Threats,Internal Strengths & Weaknesses,Long-Term Objectives,Alternative Strategies,Strategy Selection,Copyright 2007 Prentice Hall,Ch 1 -7,Issues in Strategy Formulation,New business opportunities Businesses to abandon Allocation of r

5、esources Expansion or diversification International markets Mergers or joint ventures Avoidance of hostile takeover,Copyright 2007 Prentice Hall,Ch 1 -8,Strategy Implementation,Annual Objectives,Policies,Employee Motivation,Resource Allocation,Copyright 2007 Prentice Hall,Ch 1 -9,Strategy Implementa

6、tion,Action Stage of Strategic Management Most difficult stage Mobilization of employees & managers Interpersonal skills critical Consensus on goal pursuit,Copyright 2007 Prentice Hall,Ch 1 -10,Strategy Evaluation,Internal Review,External Review,Performance Metrics,Corrective Actions,Copyright 2007

7、Prentice Hall,Ch 1 -11,Strategy Evaluation,Final Stage of Strategic ManagementSubject to future modification Todays success no guarantee of future success New & different problems Complacency leads to demise,Copyright 2007 Prentice Hall,Ch 1 -12,Peter Drucker: - Think through the overall mission of

8、a business. Ask the key question: “What is our Business?”,Prime Task of Strategic Management,Copyright 2007 Prentice Hall,Ch 1 -13,The strategic management process attempts to organize quantitative and qualitative information under conditions of uncertainty,Integrating Intuition and Analysis,Copyrig

9、ht 2007 Prentice Hall,Ch 1 -14,Intuition is based on: Past experiences Judgment Feelings,Integrating Intuition and Analysis,Intuition is useful for decision making in: Conditions of great uncertainty Conditions with little precedent,Copyright 2007 Prentice Hall,Ch 1 -15,Involve Management at all lev

10、els,Intuition & Judgment,Influence all Analyses,Integrating Intuition & Analysis,Copyright 2007 Prentice Hall,Ch 1 -16,Analytical Thinking,Integrating Intuition & Analysis,Intuitive Thinking,Copyright 2007 Prentice Hall,Ch 1 -17,Organizations must monitor events On-going process Internal and externa

11、l events Timely changes,Adapting to Change,Copyright 2007 Prentice Hall,Ch 1 -18,“Anything that a firm does especially well compared to rival firms”,Strategic Management is Gaining and Maintaining Competitive Advantage,Copyright 2007 Prentice Hall,Ch 1 -19,1. Adapting to change in external trends, i

12、nternal capabilities and resources,Achieving Sustained Competitive Advantage,2. Effectively formulating, implementing & evaluating strategies,Copyright 2007 Prentice Hall,Ch 1 -20,Copyright 2007 Prentice Hall,Ch 1 -21,Rate & magnitude of change increasing dramatically,Adapting to Change,E-commerce,D

13、emographics,Technology,Copyright 2007 Prentice Hall,Ch 1 -22,Effective Adaptation,Adapting to Change,Requires long-term focus,Copyright 2007 Prentice Hall,Ch 1 -23,What kind of business should we become? Are we in the right fields Are there new competitors? What strategies should we pursue? How are

14、our customers changing?,Adapting to Change Key Strategic Management Questions,Copyright 2007 Prentice Hall,Ch 1 -24,Key Terms,Various Job Titles: Chief Executive Officer (CEO) Chief Strategy Officer (CSO) President Owner Board Chair Executive Director,Strategists Firms success/failure,Copyright 2007

15、 Prentice Hall,Ch 1 -25,Vision Statement What do we want to become?Mission Statement What is our business?,Key Terms,Copyright 2007 Prentice Hall,Ch 1 -26,Largely beyond the control of a single organization,Key Terms,Opportunities and Threats (External),Copyright 2007 Prentice Hall,Ch 1 -27,Opportun

16、ities & Threats (External),Key Terms,Analysis of Trends: Economic Social Cultural Demographic/Environmental Political, Legal, Governmental Technological Competitors,Copyright 2007 Prentice Hall,Ch 1 -28,Process of conducting research and gathering and assimilating external information,Key Terms Oppo

17、rtunities & Threats,Environmental Scanning (Industry Analysis),Copyright 2007 Prentice Hall,Ch 1 -29,Basic Tenet of Strategic Management,Key Terms Opportunities & Threats,Strategy Formulation,Take advantage of External Opportunities,Avoid/minimize impact of External Threats,Copyright 2007 Prentice H

18、all,Ch 1 -30,Controllable activities performed especially well or poorly,Key Terms,Strengths & Weaknesses (Internal),Copyright 2007 Prentice Hall,Ch 1 -31,Strengths & Weaknesses (Internal),Key Terms,Typically located in functional areas of the firm Management Marketing Finance/Accounting Production/

19、Operations Research & Development Computer Information Systems,Copyright 2007 Prentice Hall,Ch 1 -32,Assessing the Internal Environment,Key Terms Strengths & Weaknesses,Internal Factors,Performance Metrics,Financial Ratios,Industry Averages,Survey Data,Copyright 2007 Prentice Hall,Ch 1 -33,Mission-d

20、riven pursuit of specified results more than one year out,Key Terms,Long-term Objectives,Copyright 2007 Prentice Hall,Ch 1 -34,Long-term Objectives,Key Terms,Essential for ensuring the firms success Provide direction Aid in evaluation Create synergy Focus coordination Basis for planning, motivating,

21、 and controlling,Copyright 2007 Prentice Hall,Ch 1 -35,Means by which long-term objectives are achieved,Key Terms,Strategies,Copyright 2007 Prentice Hall,Ch 1 -36,Strategies,Key Terms,Some Examples Geographic expansion Diversification Acquisition Market penetration Retrenchment Liquidation Joint ven

22、ture,Copyright 2007 Prentice Hall,Ch 1 -37,Short-term milestones that firms must achieve to attain long-term objectives,Key Terms,Annual Objectives,Copyright 2007 Prentice Hall,Ch 1 -38,Means by which annual objectives will be achieved,Key Terms,Policies,Copyright 2007 Prentice Hall,Ch 1 -39,Example

23、 Strategies in Action in 2005,Copyright 2007 Prentice Hall,Ch 1 -40,Example Strategies in Action in 2005,Copyright 2007 Prentice Hall,Ch 1 -41,External AuditChapter 3,Internal AuditChapter 4,Long-Term ObjectivesChapter 5,Generate, Evaluate, Select StrategiesChapter 6,Implement Strategies: Mgmt Issue

24、sChapter 7,Implement Strategies: Marketing, Fin/Acct, R&D, CIS Chapter 8,Measure & Evaluate PerformanceChapter 9,Vision&MissionChapter 2,Comprehensive strategic management model,Copyright 2007 Prentice Hall,Ch 1 -42,Dynamic & Continuous More formal in larger organizations,Strategic Management Model,

25、Strategic Management Process,Copyright 2007 Prentice Hall,Ch 1 -43,1. Identify Existing -,Strategic Management Model,Vision Mission Objectives Strategies,Copyright 2007 Prentice Hall,Ch 1 -44,Audit external environment Audit internal environment Establish long-term objectives Generate, evaluate & se

26、lect strategies Implement selected strategies Measure & evaluate performance,Strategic Management Model,Copyright 2007 Prentice Hall,Ch 1 -45,Benefits of Strategic Management,Proactive in shaping firms futureInitiate and influence firms activitiesFormulate better strategies Systematic, logical, rati

27、onal,Copyright 2007 Prentice Hall,Ch 1 -46,Benefits of Strategic Management,Financial Benefits,Improvement in salesImprovement in profitabilityProductivity improvement,Copyright 2007 Prentice Hall,Ch 1 -47,Benefits of Strategic Management,Non-Financial Benefits,Improved understanding of competitors

28、strategiesEnhanced awareness of threatsReduced resistance to changeEnhanced problem-prevention capabilities,Copyright 2007 Prentice Hall,Ch 1 -48,Benefits of Strategic Management (Greenley),Identification of Opportunities Objective view of management problems Improved coordination & control Minimize

29、s adverse conditions & changes Decisions that better support objectives,Copyright 2007 Prentice Hall,Ch 1 -49,Benefits of Strategic Management (Greenley contd),Effective allocation of time & resources Internal communication among personnel Integration of individual behaviors Clarify individual respo

30、nsibilitiesEncourage forward thinking,Copyright 2007 Prentice Hall,Ch 1 -50,Benefits of Strategic Management (Greenley contd),Encourages favorable attitude toward change Provides discipline and formality to the management of the business,Copyright 2007 Prentice Hall,Ch 1 -51,Why Some Firms Do No Str

31、ategic Planning,Poor reward structures Fire-fighting Waste of time Too expensive Laziness Content with success,Copyright 2007 Prentice Hall,Ch 1 -52,Why Some Firms Do No Strategic Planning,Fear of failure Overconfidence Prior bad experience Self-interest Fear of the unknown Suspicion,Copyright 2007

32、Prentice Hall,Ch 1 -53,Principles of conduct within organizations that guide decision making and behavior,Business Ethics & Strategic Management,Business Ethics defined ,Copyright 2007 Prentice Hall,Ch 1 -54,Prerequisite for good strategic management,Business Ethics & Strategic Management,Good busin

33、ess ethics ,Copyright 2007 Prentice Hall,Ch 1 -55,Provides basis on which policies can be devised to guide daily behavior and decisions in the workplace,Business Ethics & Strategic Management,Code of business ethics ,Copyright 2007 Prentice Hall,Ch 1 -56,Misleading advertising Misleading labeling Ha

34、rm to the environment Insider trading Dumping flawed products on foreign markets Poor product or service safety Padding expense accounts,Business Ethics & Strategic Management,Business practices always considered unethical ,Copyright 2007 Prentice Hall,Ch 1 -57,ISO 9000 focuses on quality control 1.

35、5 million companies incorporate ISO,Natural Environment Perspective,ISO used to gain strategic advantage,Copyright 2007 Prentice Hall,Ch 1 -58,Voluntary standards ISO 14001 standard for Environmental Management System Firms minimize harmful effects on environment,Natural Environment Perspective,ISO

36、14000 standards,Copyright 2007 Prentice Hall,Ch 1 -59,Parent company Host country,The Nature of Global Competition,International/multinational corporations,Copyright 2007 Prentice Hall,Ch 1 -60,Cultural differences Norms Values Work ethic,The Nature of Global Competition,Strategy implementation may

37、be difficult,Copyright 2007 Prentice Hall,Ch 1 -61,Advantages of International Operations,Absorb excess capacity Reduce unit costs Spread risk over wider markets Low-cost production facilities,Copyright 2007 Prentice Hall,Ch 1 -62,Advantages of International Operations (contd),Less intense competition Lower taxes Economies of scale,Copyright 2007 Prentice Hall,Ch 1 -63,Disadvantages of International Operations,Difficult communications Underestimate foreign competition Cultural barriers to effective management Complications arising from currency differences,

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