Tải bản đầy đủ (.pptx) (37 trang)

Strategic management planning for domestic and global competition 14th ed pearce robinson chapter 1

Bạn đang xem bản rút gọn của tài liệu. Xem và tải ngay bản đầy đủ của tài liệu tại đây (323.44 KB, 37 trang )

Chapter 1

Strategic Management

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or
posted on a website, in whole or part.


Learning Objectives

1.
2.
3.
4.
5.
6.
7.

Explain the concept of strategic management
Describe how strategic decisions differ from other decisions that
managers make
Name the benefits and risks of a participative approach to strategic
decision making
Understand the types of strategic decisions for which different managers
are responsible
Describe a comprehensive model of strategic decision making
Appreciate the importance of strategic management as a process
Give examples of strategic decisions that companies have recently made

2



The Nature and Value of Strategic Management



Strategic management:
The set of decisions and actions that result in the formulation and
implementation of plans designed to achieve a company’s objectives

3


Nine Critical Tasks of Strategic Management -- Tasks 1-5:






Formulate the company’s mission



Identify the most desirable options in light of the mission

Conduct an internal analysis
Assess the external environment – competitive and general contexts
Analyze the company’s options by matching its resources with the
external environment


4


Nine Critical Tasks of Strategic Management -- Tasks 6-9:






Select a set of long-term objectives and grand strategies that will
achieve the most desirable options
Develop annual objectives and short-term strategies that are compatible
with long-term objectives and grand strategies
Implement the strategic choices
Evaluate the success of the strategic process for future decision making

5


What is Strategy?

Large-scale, future-oriented plan
Used to interact within competitive environment to achieve company
goals

Provides a framework for managerial decisions
Reflects a company’s awareness of the main elements of competition

6



Dimensions of Strategic Decisions








Strategic issues require top-management team decisions
Strategic issues require large amounts of the firm’s resources
Strategic issues often affect the firm’s long-term prosperity
Strategic issues are future oriented
Strategic issues usually have multifunctional or multibusiness consequences
Strategic issues require considering the firm’s external environment

7


Dimensions of Strategic Decisions
(in detail)

 Strategic issues require top-management team decisions



Strategic decisions overarch several areas of a firm’s operations
Usually only top management has the perspective needed to understand their broad

implications



Usually only top managers have the power to authorize necessary resource allocations

8


Dimensions of Strategic Decisions (contd.)



Strategic issues require large amounts of the firm’s resources
They involve substantial allocations of people, physical assets, and money
Strategic decisions commit the firm to actions over an extended period
In highly competitive firms, achieving and maintaining customer satisfaction
frequently involves commitment from every facet of the firm





9


Dimensions of Strategic Decisions (contd.)




Strategic issues often affect the firm’s long-term prosperity
Strategic decisions commit the firm for a long time, typically 5 years;
however the impact lasts much longer
Once a firm has committed itself to a strategy, its image and competitive
advantages are usually tied to that strategy
Firms become known for what they do and where they compete. Shifting
away from that can jeopardize their previous gains.





10


Dimensions of Strategic Decisions (contd.)



Strategic issues are future-oriented
They are based on what managers forecast, rather than what they know
Emphasis is on the development of solid projections that will enable a firm to
seek the most promising strategic options
A firm will succeed only if it takes a proactive (anticipatory) stance toward
change






11


Dimensions of Strategic Decisions (contd.)



Strategic issues usually have multifunctional or multibusiness
consequences.
Strategic decisions have complex implications for most areas of the
firm
Decisions about customer mix, competitive emphasis, or
organizational structure involve a number of the firm’s SBUs,
divisions, or program units




12


Dimensions of Strategic Decisions (contd.)

• Strategic issues require considering the firm’s external environment
• All businesses exist in an open system. They affect and are affected by


external conditions that are largely beyond their control
Successful positioning requires that strategic managers look beyond
operations and consider what relevant others are likely to do


13


Levels of Strategy





Corporate level: board of directors, CEO &
administration [Highest]
Business level: business and corporate managers
[Middle]
Functional level: Product, geographic, and functional
area managers [Lowest]

14


Ex. 1.2

Alternative Strategic Management Structures

15


Ex. 1.4

Hierarchy of Objectives and Strategy


16


Characteristics of Strategic Management Decisions: Corporate






Often carry greater risk, cost, and profit potential
Greater need for flexibility
Longer time horizons
Choice of businesses, dividend policies, sources of long-term
financing, and priorities for growth

17


Characteristics of Strategic Management Decisions: Functional







Implement the overall strategy formulated at the corporate and business levels
Involve action-oriented operational issues

Relatively short range and low risk
Modest costs: depend upon available resources
Relatively concrete and quantifiable

18


Characteristics of Strategic Management Decisions: Business/SBU






Help bridge decisions at the corporate and functional levels
Less costly, risky, and potentially profitable than corporate-level decisions
More costly, risky, and potentially profitable than functional-level decisions
Include decisions on plant location, marketing segmentation, and distribution

19


Formality in Strategic Management



Formality is the degree to which participation, responsibility,
authority, and discretion in decision-making are specified in
strategic management


20


Forces Determining Formality






Organizational Size
Predominant Management Styles
Complexity of Environment
Production Process





Problems in the Firm
Purpose of the Planning System
Stage of Firm’s Development

21


Three Modes of Formality






Entrepreneurial Mode – most small firms
Planning Mode – most large firms
Adaptive Mode – most medium size firms

22


Entrepreneurial Mode



The informal, intuitive, and limited approach to strategic management associated
with owner-managers of smaller firms.

23


Planning Mode



The strategic formality associated with large firms that operate under a
comprehensive, formal planning system.

24


Adaptive Mode




The strategic formality associated with medium-sized firms that emphasize the
incremental modification of existing competitive approaches.

25


×