3L. Strategic Management Process

8/19/2019 3L. Strategic Management Process

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“The essence of strategy lies in creating tomorrow’s

competitive advantage faster than competitors mimic

the ones you possess today.”

Gary Hamel C. K. Prahalad


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2

LEARNING OBJECTIVES

1

2

3

4

Understand difference etween !lanned" #mergent$ %eali&ed 'trategy

Understand 'trategic (ecisions

(ifferent 'trategic )anagement !rocesses

Understand difference etween *ision $ )ission


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WHAT MAKES DECISIONS STRATEGIC

3

1. )agnitude2. Time+scale

3. ,ommitment

Rare, Consequential and directive


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IDENTIFYING DECISIONS

4

-$) was founded y #rling !ersson in 14/ in*0sters" 'weden. t started off life as a retailer of

women’s clothing" -ennes. n 1 it ac5uired

another 'wedish clothing retailer" )aurit& 6idfors"

which sold menswear" and changed its name to

-ennes $ )aurit&.

This was a strategic decision: it involved a major

outlay of caital, it increased the si!e and

comle"ity of the #usiness$ and it involved most ofthe comany. %nd it #rou&ht Hennes into contact

with a whole new customer se&ment 'men(


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n 1/4 it went pulic and was 5uoted on the 'toc8holm stoc8 e9change.

This is not a strate&ic decision. )t

was a means of o#tainin& funds for

e"ansion. The e"ansion may well

have #een a strate&ic decision, #ut

&oin& u#lic in itself was not.

*imilarly, later statements that H+ma-es a#out e"ansion #ein&

financed entirely from the firms own

internal funds are an indication of

how it intends to imlement any

strate&ies it adots, #ut are not

themselves strate&ies.



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#ach year" for the past several years" -$) has

e9panded into a new international mar8et or

mar8ets.

/or other comanies, that have not reviouslye"anded internationally, and H+ in the 0123s

when it oened its first store a#road 4in

5orway6, this would almost certainly #e

a strate&ic decision$ for H+ nowadays it is

ar&ua#ly not always a strategic decision.

7"andin& into new &eo&rahic areas is art ofits current strate&y



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1+/

STRATEGIC MANAGEMENT PROCESS


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1+

External

Audit

InternalAudit

Long-TermObjectives

Generate,

Evaluate,SelectStrategies

Implement

Strategies:Mgmt Issues

Implement

Strategies:Mar!eting,"in#Acct,$%&, 'IS

Measure %Evaluate

(er)ormance

*ision

% Mission


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1+

,opyright : 2;;1 -oughton )ifflin ,ompany.


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,opy g t : ;; oug to ,o pa y g ts ese ed

1+1;


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THREE OVERARCHING THEMES

mplementing a goodstrategy is at least as

important as creating

one" yet many

managers give too

little thought to

implementation

'trategic leadershipis responsile for

ma8ing

sustantive resource

allocation decisions

and

developing 8ey+

sta8eholder support

of the strategy

Firms and

indusri!s ar!

d"nami# in

naur!

T$ su##!!d%&! '$rmu(ai$n

$' a )$$d sra!)"

and is im*(!m!na+

i$n s&$u(d ,!

in!-ri#a,("

#$nn!#!d

Sra!)i# (!ad!r+

s&i* is !ss!nia( i' a

'irm is a,(! $ ,$&

'$rmu(a! and im*(!+

m!n sra!)i!s &a

#r!a! .a(u!


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12

IMPORTANCE OF E/EC0TION

“The important decisions" the

decisions that really matter" are

strategic . . . =>ut? more important

and more difficult is to ma8eeffective the course of action

decided upon.”

8 Peter 9ruc-er


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13

STRATEGY AND IMPLEMENTATION ITERATE 6


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14

THE STRATEGIC MANAGEMENT PROCESS

Sra!)i# ana("s!s

B nternal

B #9ternal

Visi$n and

missi$n

B Cundamentalorgani&ational

purpose

B Drgani&ationalvalues

Sra!)"B


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RES0LT1 INTENDED AND EMERGENT STRATEGIES

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In!nd!d $r P(ann!d Sra!)i!sB Sra!)i!s an $r)ani2ai$n *(ans $ *u in$ a#i$n

B T"*i#a((" &! r!su( $' a '$rma( *(annin) *r$#!ss

B 0nr!a(i2!d sra!)i!s ar! &! r!su( $' un*r!#!d!n!d #&an)!s andun*(ann!d !.!ns a'!r &! '$rma( *(annin) is #$m*(!!d

Em!r)!n Sra!)i!sB 0n*(ann!d r!s*$ns!s $ un'$r!s!!n #ir#umsan#!s

B S!r!ndi*i$us dis#$.!ri!s and !.!ns ma" !m!r)! &a #an $*!n u* n!3un*(ann!d $**$runii!s

B Mus ass!ss 3&!&!r &! !m!r)!n sra!)" 'is &! #$m*an"4s n!!ds and#a*a,i(ii!s

R!a(i2!d Sra!)i!sB T&! *r$du# $' 3&a!.!r in!nd!d sra!)i!s ar! a#ua((" *u in$ a#i$n

and $' an" !m!r)!n sra!)i!s &a !.$(.!


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1+1

INTENDED AND EMERGENT STRATEGIES


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1+1/

'ourceF


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1

0NPLANNED ACTIONS CAN DRIVE STRATEGY

In!(4s $ri)ina( '$#us

56789s : 67;9s<

(esign and manufacture

of (ynamic" %andom+

?

$' In!( r!.!nu!

#am! 'r$m &!

mi#r$*r$#!ss$r

s!)m!n


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1

B0SINESS STRATEGY DIAMOND

Sa)in)

Di''!r!nia$rs

E#$n$mi#

($)i#V!&i#(!s

Ar!nas

B 6hat will e our speed andse5uence of movesL M 'peed of e9pansionL M 'e5uence of initiatives

Sa)in)

B -ow will returns e otainedL M @owest costs through scale

advantagesL M @owest costs through scope

and replication advantages M !remium prices due to

unmatchale serviceL M !remium prices due to

proprietary product featuresL

E#$n$mi# ($)i#

B -ow will we get thereL M nternal developmentL M Ioint venturesL M @icensingNfranchisingL M #9perimentationL M


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2;

JET BL0E STRATEGY

O,@!#i.!

To “ring

humanity

ac8 to air

travel”

Ar!nasAr!nas

B @ow fare commercial air carrier B Underserved ut over+priced U' cities

V!&i#(!sV!&i#(!s

B 'tart from scratch and achieve all growthinternally Ji.e." do not purchase a regional airlineK

Di''!r!nia$rsDi''!r!nia$rs

B -igh level of service compared to low fare competitors

Je.g." leather seating" satellite T*K

Sra!)"Sra!)"B Grow from one route etween two cities to serving 2;

cities in Eust 3 years

E#$n$mi# ($)i#E#$n$mi# ($)i#B 'ecure cost advantage y eing willing and ale to

perform 8ey tas8s differently M Dne type of plan M ICO home ase M 'econdary location


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FRAMEWORK FOR STRATEGY IMPLEMENTATION

In!nd!d

Sra!)"

R!a(i2!d

and

Em!r)!n

Sra!)i!s

K!" Fa#$rs $' Sra!)" Im*(!m!nai$n

Im*(!m!nai$n (!.!rs

B Drgani&ational structure

B 'ystems and processes

B !eople and rewards

Sra!)i# (!ad!rs&i*

B @ever+ and resource+allocation decisions

B (ecision support among sta8eholders


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The Environment -

“Threats & Opportunities”

Management’s values &

attitude toward risk

Organization’s resources

and capabilities -

“Strengths & Weaknesses”

GOAL

Performance

Implementation Levers:

Organization structure!stems and processesPeople and re"ards

trategic Leadership:

Lever and resource

allocation decisions#evelop support among

stakeholders

T$ATEG%


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P0LLING A 0SD 6> BILLION COW O0T OF A DITCH

B Aero9 introducesthe Aero9 14copier in 17.This copiertransformed the

wor8 placeB Aero9 was charter

memer of the“nifty 7;”+7; stoc8smost favored yinstitutionalinvestors

B 'ince 1/;s"however" Aero9has een crippledy competitionJmostly IapaneseK

B Dctoer 2;;1" Aero9reports first 5uarterlyloss in1 years.)ulcahy is notovious choice for

top positionB 'he lac8s product

development andfinancial e9pertise

B 'he gets it ecausethe oard hasconfidence in her

“strategic mind”.

B %efines Aero9 visionand reminds peopleof core values

B 9

Mu(#a&" a!s

$.!r

S&! (!nds a

urnar$und

/!r$-r!a#&!s*r$'ia,i(i"


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0P STATE TO0RISM DEVELOPMENT CORPORATION

The mission of the corporation as laid down in its memorandum of association areF

BTo promote" ta8e over" develop" start" purchase" construct" ta8e on lease" maintain"manage and operate hotels" restaurants" motels" travelers" lodges" guest houses and

other places for the purpose of oarding" lodging and stay of the tourists.

BTo enter into any arrangement for ta8ing over any or all of the assets and liailities ofany department of the Government of U! connected with the development of tourism.

BTo estalish and manage transport units" travel and transport counters" import"purchase lease and run or otherwise operate uses" truc8s" aircraft" helicopter etc. and

to act as travel agents for airlines" railways etc.

BTo produce" distriute and sell tourist pulicity materialF edit design" print" pulish" sellor otherwise deal with oo8s" maga&ines" periodicals and other materials for the

purpose of giving pulicityP.
http://video-1%20organization%20vision%20values.dat/http://video-1%20organization%20vision%20values.dat/

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3L. Strategic Management Process

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