Study Question 1: What is strategic management?
Strategic Management Process:
- Strategic formulation
- Strategic Implementation
Figure 7.2 Strategy formulation and implementation in the strategic management process.
Drucker’s strategic questions for strategy formulation:
- What is our business mission?
- Who are our customers?
- What do our customers consider value?
Study Question 2: What are the essentials of strategic analysis?
Analysis of mission:
- The reason for an organization’s existence
- An important test of the mission is how well it serves the organization’s stakeholders.
Figure 7.3 How external stakeholders can be valued as strategic constituencies of organizations.
Apple is committed to bringing the best personal computing experience to students, educators, creative
professionals and consumers around the world through its innovative hardware, software and Internet
Google’s mission is to organize the world’s information and make it universally accessible and useful.
The mission of the Ted Rogers School of Management is to develop global leaders with an
entrepreneurial orientation and the knowledge and critical thinking skills needed to solve real world
Analysis of core values:
- Values are broad beliefs about what is or is not appropriate.
- Google “10 things”.
Analysis of objectives:
- Operating objectives direct activities toward key and specific performance results.
Analysis of organizational resources and capabilities:
- Core competency is a special strength that gives an organization competitive advantage
- Important goal of assessing core competencies.
Google “10 things”
- Focus on the user and all else will follow.
- It’s best to do one thing really, really well.
- You don’t need to be at your desk to need an answer - You can make money without doing evil
- The need for information crosses all borders.
- You can be serious without a suit
Google’s expansion strategy in China
- In order to “organize the world’s information and make it universally accessible and useful
(mission statement)”, Google needs to expand internationally.
- In China, Google has not provide reliable and efficient service
- Google wants to enhance its legitimacy with Chinese users to lead to greater revenue streams
from advertising to Chinese users.
- Google opposes any interference that might slow down or restrict a user’s ability to retrieve
- Censorship could harm Google’s credibility among Chinese and non-Chinese users.
Google’s expansion strategy in China:
- Google’s major competitor in China: Baidu
- Baidu, Inc. is a Chinese web services company headquartered in Beijing.
- Acquire Baidu? Chinese law prohibits Google from holding more than a minority stake of Baidu.
- Google hired Dr. Kai-fu Lee as the founding president of Google China in 2005.
- Lee was a world-renowned computer scientist widely praised and highly regarded in China and
among the Chinese high-tech community.
- Launch a Chinese domain server Google.cn In China within 12 months
- Maintain offshore server
- Establish Server Presence in China
- Lobby China for access to larger stake in Baidu
Maintain offshore server:
- Maintain cores value “you can make money without doing evil.”
- Minimal cost
- Minimal risk
- Limiting revenue
- Highly regulated
- Interference with Operations
- Limited Performance
- Opportunity Cost
Google’s censorship-free offshore sites - Google searches are monitored by the Chinese government, and results found unacceptable
were blocked by the censors.
Internet censorship in China
- Internet censorship in the People’s Republic of China is conducted under a wide variety of laws
and administrative regulations.
- The governmental authorities not only block website content but also monitor the Internet
access of individuals.
Great Firewall of China
- The “Great Firewall of China” is a system “that includes a blacklist of foreign sites blocked in
China and filters that can stop email and make Web pages inaccessible if they contain certain
- Has blocked The New York Times, Facebook, Wikipedia, Youtube, CNN, NBC, and the
Establish Server Presence in China:
- Market development