> Foundations of Strategic Management
> Strategic management process
> Strategies used by organizations
> Development of Strategies
> Current issues in strategy implementation
- Basic concepts of strategy
- Competitive advantage
- Sustainable competitive advantage
- Strategic intent
- Strategic management
> Foundations of strategic competitiveness
- Environments and competitive advantage
- Only one player and no competition
- Creates absolute competitive advantage
- Few players not directly competing against each other
- Long-term competitive advangate in defined market segment
- Several players directly competing against each other
- Any competitive advangate is only temporary
- Strategy formulation
- The process of creating strategy
- Involves assessing existing strategies, organizations, and environment
to develop new strategies and strategic plans capable of deliver
future competitive advantage
- Strategy Formulation - Creating Stratgies
- Identify and analyze current: Mission, Objectives, Strategies
- Analyze internal and external environments: Organizational resources
and capabilities (strengths and weaknesses), Industry and extern
environment (opportunities and threats)
- Revise mission and objectives, select new strategies: Corperate, Busin
- Strategy Implementation - Putting strategies into action
- Implement strategies:
- Corporate governance
- Management systems and practices
- Strategic leadership
- Evaluate results
- Strategic control
- Renew strategic management process
- Strategic question for strategy formlation
- What is our business mission?
- Who are our customers?
- What do our customers consider value?
- What have been our results?
- What is our plan?
- Strategy Implementation - The process of allocating resources and putting strategies into action
- All organizational and management systens must be mobilized to support
and reinforce the accomplishment of strategies.
- Essential tasts for strategy implementation
- Identify organizational mission and objectives
- Assess current performance vis-a-vis mission and objectives
- Create strategic plans to accomplish purpose and objectives
- Implement the strategic plans
- Evaluate results; change strategic plans and/or implementation
processes as necessary
- Analysis of mission
- The reson for an organization's existence
- Good mission statements identify:
- Products and/or services
- Underlying Philosophy
- An important test of the mission is how well it serves the organizatio
- How external stakeholders can be valued as strategic constituencies of organiz
- Employees: We respect the individuality of each employee. Crea
and productivity are encouraged, valued, and rewarded
- Communities: We are committed to being caring and supportive c
within the worldwide communities in which we operate
- Shareholders: We are dedicated to performing in a manner that
returns on investments
- Customers: We are commited to providing superior value in out
products and services
- Suppliers: We think of our suppliers as partners who share our
goal of highest quality
- Strategic management process:
- Analysis of values
- Organizational culture
- Analysis of objectives
- Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis
> SWOT Analysis:
- Internal Assessment of the Organizations:
- What are our strengths?
- Manufacturing efficiency?
- Skilled workforce?
- Good market share?
- Strong financing?
- Superior reputation?
- What are our weaknesses?
- Outdated facilities?
- Inadequate R&D?
- Obsolete technologies?
- Weak management?
- Past planning failures? - External Assessment of the Environment
- What are our opportunities?
- Possible new markets?
- Strong economy?
- Weak market rivals?
- Emerging technologies?
- Growth of existing market?
- What are our threats?
- New competitors?
- Shortage of resources?
- Changing market tastes?
- New regulations?
- Substitutes Products?
- Analysis of the industry and environment
- Assessment of macro environment:
- Social structures and population demographics
- Global economy
- Natural environment
- Analysis of industry environment
- Resource suppliers
- Industry Competition: Rivalry among competing firms
- New Entrants: Threat of potential new competitors
- Customers: Bargaining power of buyers
- Substitute Products: Threat of substitute