Strategy

warbarnacleΑσφάλεια

5 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

54 εμφανίσεις

Chapter 8

Strategy Formulation and Implementation


Every company is concerned with strategy


It determines which organizations succeed and
which ones struggle


Strategic blunders can hurt a company



Strategic management
is a specific type of
planning

Strategy

2

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


The
long
-
term view
of the organization and
competition


Thinking strategically impacts
performance

and
financial success


Today’s environment requires
everyone to think
strategically


Thinking Strategically

3

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

Decisions

and
actions

used to formulate and
execute strategies
that will provide
competitively superior fit
between the
organization

and its
environment
to achieve
organizational goals

Strategic Management

4

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Explicit strategy
is the plan of action



Competitive advantage
is the organization’s
distinctive edge for meeting customer needs


Strategies should:


Exploit Core Competencies


Build Synergy


Deliver Value


Purpose of Strategy

5

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

8.1 Levels of Strategy

6

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Corporate Level Strategy
-
relating to
orgz

as a whole
& combination of business units and product lines
that make up the company

What Buss. Are We in?


Business Level Strategy
-
strategic decisions involving
each business unit


How Do We Compete?


Functional Level Strategy
-
functional
dpmt

within
business
unit
-
How do We Support Buss Level
Strategy?

Levels of
Stratey

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

7

8.2 The Strategic Management
Process

8

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

Strategy Formulation

versus Execution

Formulation:

Assessing the external
environment and
internal problems to
create goals and
strategy


Execution:

the use of managerial
and organizational

tools to direct

resources toward
accomplishing

strategic results

9

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Formulating strategy often begins with an audit
of internal and external factors


Internal
S
trengths and
W
eaknesses


External
O
pportunities and
T
hreats



Information is acquired from reports, surveys,
discussions, and meetings

SWOT Analysis

10

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

8.3 SWOT: Audit Checklist

11

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Strategic Business Units (SBUs) have a
unique mission, products, and
competitors


Companies manage the

mix
of SBUs for
synergy

and
competitive advantage


Organizations should not become too
dependent on one business

Formulating Corporate
-
Level
Strategy: Portfolio Strategy

12

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Organizes business along two dimensions


Business growth rate


Market share



Four categories for corporate portfolio


The combination of high/low market share and
high/low business growth


Formulating Corporate
-
Level
Strategy: The BCG Matrix

13

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

8.4 The BCG Matrix

14

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Moving into
new lines of business


Expand into new valuable products and services


Related Diversification

Expand into new business related to existing buss.

Unrelated diversification
is expansion into new lines
of business


Can be a difficult strategy


Many companies are giving up on unrelated
diversification


Vertical integration
expands into businesses that
supply to the business or are distributors

Formulating Corporate
-
Level
Strategy: Diversification Strategy

15

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Strategy within the business units:
How do we
compete?


Business
-
level strategies are developed by
Porter’s Five Forces


But, web technology is impacting all industries in
positive and negative ways

Formulating Business
-
Level
Strategy

16

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

8.5 Porter’s Five Forces

17

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Potential new entrants
-
capital requirements,
economics of scale


Buyers Bargaining power

information


Suppliers Bargaining Power
-
availability of
substitute suppliers


Threat of Substitute products
-

changes in
trends


Competitors Rivalry
-
influenced by all four &cost
& differentiation e.g. Nintendo
vs

Sony, Coke
vs

Pepsi
etc
?

Porters Five Forces

18

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Differentiation
-

distinguish firms
product/services
e.g

product features,
advertising, service examples?


Cost Leadership
-
seeks efficient facilities, cost
reductions, tight cost controls examples?


Focus
-
concentrate on specific market/buyer.
Will use diff or cost leadership


Porters Competitive
Strategies

19

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

8.6 Porter’s Competitive
Strategies

20

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

Action plans used by major departments



Marketing


Production


Finance


Human Resources


Research and Development

Formulating Functional
-
Level
Strategy

21

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.


Strategic Flexibility


managers must be
prepared to change and adjust strategy quickly


Strategic Partnerships


collaboration with
other organizations is important


Global Strategy


organizations pursue a
distinctive focus for global business

New Trends in Strategy

22

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.

The final step!


“Strategy is easy, but execution is hard”


Most important but most difficult part


Strategy must be
skillfully executed


Alignment

requires all aspects of the
organization to focus on strategy goals


Everyone is moving in the same direction


Strategy Execution

23

Copyright ©2012 by South
-
Western, a division of Cengage Learning. All rights reserved.