The Foundations of Strategic Management

The Foundations of Strategic Management - The Foundations...

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Unformatted text preview: The Foundations of The Foundations of Strategic Management Rod Thirion Life’s Questions Life’s Questions What? This is the vision question. What will our future look like? What will we accomplish? What is our dream with a deadline? Why? This is the mission question. Why do we exist? Why is our vision important? Who and When? These are the goals questions. Who will do what? When will they do it? How? Strategy answers this question. How will we achieve our goals? How will our vision bring our mission to life? Strategy Strategy Action plan to advance an organization toward achievement of it’s vision. Strategic Management includes three primary parts: vision, analysis and strategy Strategic Management Strategic Management Key Characteristics Should be performance oriented Should be ongoing Should be dynamic Should be oriented to both present and future Should be concerned with conditions outside and inside the firm Should perform well and satisfy customers External Environment External Environment Part of Situation Analysis (outside) Industry and competitive conditions Can also include economic issues. i.e. recession, boom, globalization These are opportunities & threats Also called macro­environment Industrial Organization Model Industrial Organization Model for Analyzing External Environment Studying – examining outside conditions Identifying – what is attractive? Selecting – Choosing the right strategy Implementing – using resources correctly Internal Environment Internal Environment Part of Situation Analysis (inside) Competencies (core and distinctive) Capabilities These are resource strengths and weaknesses Should lead to competitive advantage Resource­Based View (RBV) Resource­Based View (RBV) Model for Analyzing Internal Environment Studying – determining conditions inside the company Identifying – what and can we do better? Selecting – choosing the right strategy Implementing – using resources correctly Stakeholders Stakeholders Owners Owners/shareholders – expect some form of return on their investment External Stakeholders Internal Stakeholders Customers ­ expect a seller to provide them with a reliable, safe product or service Suppliers ­ expect to have an equitable relationship with firms they supply and be treated fairly Community ­ expect businesses to be good citizens in their community Government Agencies ­ expect businesses to follow the rules and play fairly Employees & Managers ­ expect to be treated with dignity and respect for devoting their energies to the enterprise Strategic Leadership Strategic Leadership Individuals tasked with developing and implementing strategy Organizational Culture Strategic Management Process Strategic Management Process Vision The Foundations of Strategic Management Leading Strategically Strategic Management Process Strategic Management Process (cont.) Analysis Analyzing the External Environment Analyzing the Firm Strategic Management Process Strategic Management Process (cont.) Competing through Rivalry Business­Level Strategy Multi­product Strategies Acquiring and Integrating Businesses Strategic Management Process Strategic Management Process (cont.) Competing through Market Entry Competing Across Borders Creating and Maintaining Alliances Innovating Through Strategic Entrepreneurship Why Is Strategy Important? Why Is Strategy Important? Part of a managers existence is to shape how a firm’s business will be conducted Strategy­focused firms are more likely to perform well financially than one’s that view strategy as secondary Why is Strategy So Hard? Why is Strategy So Hard? The CEO Strategy Checklist How do your customers view your organization? How do your suppliers view your organization? How do your employees view your organization? Has your organization’s strategy been articulated and communicated? Does this strategy make sense given the current and anticipated external threats and opportunities? Where are the gaps in terms of internal strengths and capabilities? Have the desired outputs of the firm and the level of performance expected been determined and communicated? The CEO Refresher. (Copyright 2000). Retrieved March 7, 2007. From http://www.refresher.com/!classic.html Why is Strategy So Hard? Why is Strategy So Hard? The CEO Strategy Checklist (cont.) Are all necessary functions in place? Are there currently functions that are unnecessary or that could or should be outsourced? Does the formal organization structure support the strategy? Where does the formal structure inhibit efficiency of executing the strategy? Have all relevant functional goals been established? Is all relevant performance measured? Are resources properly allocated? The CEO Refresher. (Copyright 2000). Retrieved March 7, 2007. From http://www.refresher.com/!classic.html Food For Thought Food For Thought “Too many leaders try to do a little bit of 25 things and get nothing done. They are very popular because they always say yes. But they get nothing done.” Peter Drucker, November 2004 ...
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This note was uploaded on 11/05/2011 for the course ACCOUNTING 101 taught by Professor Online during the Spring '11 term at Colorado Technical University.

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