MGMT1001 Lecture Notes - Lecture 10: Strategic Management, Competitive Intelligence, Bargaining Power
18 May 2018
School
Department
Course
Professor
10 – Strategic Planning
Strategy – large-scale action plan that sets the direction for an organisation
• Strategic management – process that involves managers from all parts of the
organisation in the formulation and implementation of strategies and strategic goals
Why strategic management and strategic planning are important
• Providing direction and momentum
• Encouraging new ideas
• Developing a sustainable competitive advantage
What is an effective strategy?
• Strategy is the creation of a unique and valuable position
Few needs, many customers
Broad needs, few customers
Broad needs, many customers
• Strategy requires trade-offs in competing
• Strategy ioles reatig a fit aog atiities
Five steps of the strategic-management process
• Step 1: Establish the mission and vision
Mission – guide to action that can help motivate staff
Vision – positive and inspiring
• Step 2: Establish the grand strategy ho orgaisatios issio is aoplished
Growth strategy – involves expansion (e.g. sales revenues, # of employees)
Stability strategy – involves little or no significant change
Defensive (retrenchment) strategy – involves reduction in orgaisatios efforts
• Step 3: Formulate strategic plans
Strategy formulation – process of choosing among different strategies and
alterig the to est fit the orgaisatios eeds
• Step 4: Carry out the strategic plans – strategy implementation
• Step 5: Maintain strategic control: the feedback loop
Strategic control – monitoring the execution of strategy & adjusting, if necessary
(a) Engage people
(b) Keep it simple
(c) Stay focused
(d) Keep moving
Competitive intelligence
• Gaiig iforatio aout your opetitors ativities so that you can anticipate
their moves and react appropriately
• Can be gained through:
Publicity & advertising, investor information, business associations, trade shows
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Strategy large-scale action plan that sets the direction for an organisation: strategic management process that involves managers from all parts of the organisation in the formulation and implementation of strategies and strategic goals. Why strategic management and strategic planning are important: providing direction and momentum, encouraging new ideas, developing a sustainable competitive advantage. What is an effective strategy: strategy is the creation of a unique and valuable position. Broad needs, many customers: strategy requires trade-offs in competing, strategy i(cid:374)(cid:448)ol(cid:448)es (cid:272)reati(cid:374)g a (cid:858)fit(cid:859) a(cid:373)o(cid:374)g a(cid:272)ti(cid:448)ities. Five steps of the strategic-management process: step 1: establish the mission and vision. Mission guide to action that can help motivate staff. Vision positive and inspiring: step 2: establish the grand strategy (cid:894)ho(cid:449) orga(cid:374)isatio(cid:374)(cid:859)s (cid:373)issio(cid:374) is a(cid:272)(cid:272)o(cid:373)plished(cid:895) Growth strategy involves expansion (e. g. sales revenues, # of employees) Stability strategy involves little or no significant change. Defensive (retrenchment) strategy involves reduction in orga(cid:374)isatio(cid:374)(cid:859)s efforts: step 3: formulate strategic plans.
