ppt on startegic mgmt

50 %
50 %
Information about ppt on startegic mgmt
Education

Published on August 10, 2008

Author: jignay

Source: authorstream.com

Chapter 1 The Nature of Strategic Management : Copyright 2007 Prentice Hall Ch 1 -1 Chapter 1 The Nature of Strategic Management Strategic Management: Concepts & Cases 11th Edition Fred David Themes in the Text : Copyright 2007 Prentice Hall Ch 1 -2 Themes in the Text Global Considerations – impact virtually all strategic decisions E-commerce – vital strategic management tool Natural environment – important strategic issue Slide 3: 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 Slide 4: Copyright 2007 Prentice Hall Ch 1 -4 Strategic Management In essence, the strategic plan is a company’s game plan Slide 5: Copyright 2007 Prentice Hall Ch 1 -5 Strategic Management achieves a firm’s success through integration –– Management MIS Production/Operations Finance/Accounting Marketing Research & Development Slide 6: Copyright 2007 Prentice Hall Ch 1 -6 Vision & Mission Strategy Formulation External Opportunities & Threats Internal Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection Slide 7: Copyright 2007 Prentice Hall Ch 1 -7 Issues in Strategy Formulation New business opportunities Businesses to abandon Allocation of resources Expansion or diversification International markets Mergers or joint ventures Avoidance of hostile takeover Slide 8: Copyright 2007 Prentice Hall Ch 1 -8 Strategy Implementation Annual Objectives Policies Employee Motivation Resource Allocation Slide 9: Copyright 2007 Prentice Hall Ch 1 -9 Strategy Implementation Action Stage of Strategic Management – Most difficult stage Mobilization of employees & managers Interpersonal skills critical Consensus on goal pursuit Slide 10: Copyright 2007 Prentice Hall Ch 1 -10 Strategy Evaluation Internal Review External Review Performance Metrics Corrective Actions Slide 11: Copyright 2007 Prentice Hall Ch 1 -11 Strategy Evaluation Final Stage of Strategic Management Subject to future modification Today’s success no guarantee of future success New & different problems Complacency leads to demise Slide 12: Copyright 2007 Prentice Hall Ch 1 -12 Peter Drucker: -- Think through the overall mission of a business. Ask the key question: “What is our Business?” Prime Task of Strategic Management Slide 13: 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 Slide 14: Copyright 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 Slide 15: Copyright 2007 Prentice Hall Ch 1 -15 Involve Management at all levels Intuition & Judgment Influence all Analyses Integrating Intuition & Analysis Slide 16: Copyright 2007 Prentice Hall Ch 1 -16 Analytical Thinking Integrating Intuition & Analysis Intuitive Thinking Slide 17: Copyright 2007 Prentice Hall Ch 1 -17 Organizations must monitor events On-going process Internal and external events Timely changes Adapting to Change Slide 18: 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 Slide 19: Copyright 2007 Prentice Hall Ch 1 -19 1. Adapting to change in external trends, internal capabilities and resources Achieving Sustained Competitive Advantage 2. Effectively formulating, implementing & evaluating strategies Slide 20: Copyright 2007 Prentice Hall Ch 1 -20 Slide 21: Copyright 2007 Prentice Hall Ch 1 -21 Rate & magnitude of change increasing dramatically Adapting to Change E-commerce Demographics Technology Slide 22: Copyright 2007 Prentice Hall Ch 1 -22 Effective Adaptation Adapting to Change Requires long-term focus Slide 23: 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 our customers changing? Adapting to Change – Key Strategic Management Questions Key Terms : 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 – Firm’s success/failure Slide 25: Copyright 2007 Prentice Hall Ch 1 -25 Vision Statement – What do we want to become? Mission Statement – What is our business? Key Terms Slide 26: Copyright 2007 Prentice Hall Ch 1 -26 Largely beyond the control of a single organization Key Terms Opportunities and Threats (External) Slide 27: Copyright 2007 Prentice Hall Ch 1 -27 Opportunities & Threats (External) Key Terms Analysis of Trends: Economic Social Cultural Demographic/Environmental Political, Legal, Governmental Technological Competitors Slide 28: Copyright 2007 Prentice Hall Ch 1 -28 Process of conducting research and gathering and assimilating external information Key Terms Opportunities & Threats Environmental Scanning (Industry Analysis) Slide 29: 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 Slide 30: Copyright 2007 Prentice Hall Ch 1 -30 Controllable activities performed especially well or poorly Key Terms Strengths & Weaknesses (Internal) Slide 31: 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/Operations Research & Development Computer Information Systems Slide 32: 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 Slide 33: Copyright 2007 Prentice Hall Ch 1 -33 Mission-driven pursuit of specified results more than one year out Key Terms Long-term Objectives Slide 34: Copyright 2007 Prentice Hall Ch 1 -34 Long-term Objectives Key Terms Essential for ensuring the firm’s success Provide direction Aid in evaluation Create synergy Focus coordination Basis for planning, motivating, and controlling Slide 35: Copyright 2007 Prentice Hall Ch 1 -35 Means by which long-term objectives are achieved Key Terms Strategies Slide 36: Copyright 2007 Prentice Hall Ch 1 -36 Strategies Key Terms Some Examples Geographic expansion Diversification Acquisition Market penetration Retrenchment Liquidation Joint venture Slide 37: Copyright 2007 Prentice Hall Ch 1 -37 Short-term milestones that firms must achieve to attain long-term objectives Key Terms Annual Objectives Slide 38: Copyright 2007 Prentice Hall Ch 1 -38 Means by which annual objectives will be achieved Key Terms Policies Example Strategies in Action in 2005 : Copyright 2007 Prentice Hall Ch 1 -39 Example Strategies in Action in 2005 Example Strategies in Action in 2005 : Copyright 2007 Prentice Hall Ch 1 -40 Example Strategies in Action in 2005 Comprehensive strategic management model : Copyright 2007 Prentice Hall Ch 1 -41 External Audit Chapter 3 Internal Audit Chapter 4 Long-Term Objectives Chapter 5 Generate, Evaluate, Select Strategies Chapter 6 Implement Strategies: Mgmt Issues Chapter 7 Implement Strategies: Marketing, Fin/Acct, R&D, CIS Chapter 8 Measure & Evaluate Performance Chapter 9 Vision & Mission Chapter 2 Comprehensive strategic management model Slide 42: Copyright 2007 Prentice Hall Ch 1 -42 Dynamic & Continuous More formal in larger organizations Strategic Management Model Strategic Management Process Slide 43: Copyright 2007 Prentice Hall Ch 1 -43 1. Identify Existing -- Strategic Management Model Vision Mission Objectives Strategies Slide 44: Copyright 2007 Prentice Hall Ch 1 -44 Audit external environment Audit internal environment Establish long-term objectives Generate, evaluate & select strategies Implement selected strategies Measure & evaluate performance Strategic Management Model Slide 45: Copyright 2007 Prentice Hall Ch 1 -45 Benefits of Strategic Management Proactive in shaping firm’s future Initiate and influence firm’s activities Formulate better strategies Systematic, logical, rational Slide 46: Copyright 2007 Prentice Hall Ch 1 -46 Benefits of Strategic Management Financial Benefits Improvement in sales Improvement in profitability Productivity improvement Slide 47: Copyright 2007 Prentice Hall Ch 1 -47 Benefits of Strategic Management Non-Financial Benefits Improved understanding of competitors strategies Enhanced awareness of threats Reduced resistance to change Enhanced problem-prevention capabilities Slide 48: Copyright 2007 Prentice Hall Ch 1 -48 Benefits of Strategic Management (Greenley) Identification of Opportunities Objective view of management problems Improved coordination & control Minimizes adverse conditions & changes Decisions that better support objectives Slide 49: Copyright 2007 Prentice Hall Ch 1 -49 Benefits of Strategic Management (Greenley – cont’d) Effective allocation of time & resources Internal communication among personnel Integration of individual behaviors Clarify individual responsibilities Encourage forward thinking Slide 50: Copyright 2007 Prentice Hall Ch 1 -50 Benefits of Strategic Management (Greenley – cont’d) Encourages favorable attitude toward change Provides discipline and formality to the management of the business Slide 51: Copyright 2007 Prentice Hall Ch 1 -51 Why Some Firms Do No Strategic Planning Poor reward structures Fire-fighting Waste of time Too expensive Laziness Content with success Slide 52: 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 Slide 53: Copyright 2007 Prentice Hall Ch 1 -53 Principles of conduct within organizations that guide decision making and behavior Business Ethics & Strategic Management Business Ethics defined – Slide 54: Copyright 2007 Prentice Hall Ch 1 -54 Prerequisite for good strategic management Business Ethics & Strategic Management Good business ethics – Slide 55: 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 – Slide 56: Copyright 2007 Prentice Hall Ch 1 -56 Misleading advertising Misleading labeling Harm 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 – Slide 57: Copyright 2007 Prentice Hall Ch 1 -57 ISO 9000 focuses on quality control > 1.5 million companies incorporate ISO Natural Environment Perspective ISO used to gain strategic advantage Slide 58: 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 14000 standards Slide 59: Copyright 2007 Prentice Hall Ch 1 -59 Parent company Host country The Nature of Global Competition International/multinational corporations Slide 60: Copyright 2007 Prentice Hall Ch 1 -60 Cultural differences Norms Values Work ethic The Nature of Global Competition Strategy implementation may be difficult Slide 61: 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 Slide 62: Copyright 2007 Prentice Hall Ch 1 -62 Advantages of International Operations (cont’d) Less intense competition Lower taxes Economies of scale Slide 63: 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

Add a comment

Related presentations

Related pages

STRATEGIC MANAGEMENT- CHAPTER TEN - Sacramento State

STRATEGIC MANAGEMENT- CHAPTER TEN Last modified by: Chris Caire Company: Robinson College of Business ...
Read more

Chapter 1 The Nature of Strategic Management

Chapter 1 The Nature of Strategic Management Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an ...
Read more

Strategic management - Wikipedia

Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on ...
Read more

Strategic Management - Meaning and Important Concepts

Strategic Management - An Introduction. Strategic Management is all about identification and description of the strategies that managers can carry so as to ...
Read more

Strategic Management Process: An Introduction

Strategic Management Process: An Introduction University of Debrecen Faculty of Ag. Economics and Rural Development Dept.: Business Management and Marketing
Read more

SMS | Strategic Management Society

Welcome to the Strategic Management Society! Our organization is unique in bringing together the worlds of reflective practice and
Read more

Strategic Mgmt..ppt - es.scribd.com

presentation on strategic management ... Strategy is a designed action taken by an individual/s to attain one or more of his immediate , or long term goals.
Read more