Session02:Strategic Management ProcessDr. Mark H. Mortensen66.490.211 and 212Tues &Thurs 2:00 to 3:15

3:30 to 4:45

Manning School of Business

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Today1. Attendance2. Lecture on Chapter 1 in book (continued)3. Discussion on Strategic Management Process4. Groups create and give presentations on

Assignment #25. Go over Assignment #3 (Due Thursday)

Bring info on your group’s company to class

(c) 2012 Flat World Knowledge

The Modern History of Strategic Management

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(c) 2012 Flat World Knowledge

The Modern History of Strategic Management

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(c) 2012 Flat World Knowledge

The Modern History of Strategic Management

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(c) 2012 Flat World Knowledge

Understanding the Strategic Management Process

• Strategic management process: Building a careful understanding of how the world is changing and the a knowledge of how those changes might affect a particular firm– Understanding strategy and performance– Environmental and Internal scanning– Strategy formulation– Strategy implementation

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Mortensen Consulting Group

Today1. Attendance2. Lecture on Chapter 1 in book (continued)3. Discussion on Strategic Management Process4. Groups create and give presentations on

Assignment #25. Go over Assignment #3 (Due Thursday)

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Strategic Management Process: Step-by-Step [1]

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Strategic Management Process: Environmental Scanning

Assumptions

Constraints

Truisms

TOOLS PEST(EL) analysis Porter 5-Forces model Company positioning chart Product positioning charts BCG product matrix GE product matrix Core competency analysis Value chain analysis Bowman’s Strategy Clock

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Strategic Management Process: Strategy Formulation

TOOLS All the tools from Environmental

Scanning SWOT Analysis (TOWS, IFAS,

EFAS) Unique Selling Point Analysis Scenario Planning

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Strategic Management Process: Strategy Implementation

TOOLS Vision Statement Mission Statement Strategic Goals Change Management Programs Projects

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Strategic Management Process: Evaluation and Control

TOOLS Everything else you have learned in

Business School

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Strategic Management Process: Examples Kenichi Omhae and Yamaha

Louis Gerstner and IBM

Matt Desch and Telcordia Technologies

“In business as on the battlefield, the object of strategy is to bring about the condition most favorable to one’s own side.” - Kenichi Ohmae

“The next thing is: we can make IBM even better, ... We brought IBM back but we're gunning for leadership.”

Providence and Warburg Pincus together put just over $300 million in equity towards buying Telcordia in 2004. The rest of the $1.35 billion headline purchase price was funded with borrowed money. It was a dangerous investment, but they were able to sell it to Ericsson for $1.15 billion paying down Telcordia debt and are holding onto holding onto the company’s cash, helping turn a slim profit.

Mortensen Consulting Group

Today1. Attendance2. Lecture on Chapter 1 in book (continued)3. Discussion on Strategic Management Process4. Groups create and give presentations on

Assignment #25. Go over Assignment #3 (Due Thursday)

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Group Workshop: Your Company

Take 20 minutes:Pull together your group information about the

company that your group has been assigned to.

Fill out the information on the profile sheet Present the sheet (via overhead projector)

to the class (3-5 minutes).

Mortensen Consulting Group

Today1. Attendance2. Lecture on Chapter 1 in book (continued)3. Discussion on Strategic Management Process4. Groups create and give presentations on

Assignment #25. Go over Assignment #3 (Due Thursday)

Mortensen Consulting Group

Assignment #3: Written report on Starbucks and Dunkin’ DonutsDue by: Next Tuesday (next week)

Each person visit both a Starbucks and a Dunkin’ Donuts retail store and write a report. Describe and contrast the atmospheres, types of menu items, service quality,

and prices Describe and contrast the patrons and how they react to the above Talk to at least one person in the store about why they come there and relate

their opinions Describe your own experiences at each of them, from this and other visits.

Visit the Starbucks and Dunkin’ Donuts web sites: Try to determine their target markets, mission statements, and anything else you

can glean about their strategies – write a paragraph or two on each Contrast the two web sites Contrast the apparent strategies of the two Discuss how the information on the web sites does or does not match the reality

in each case. A few informal pages should suffice – if it wants to be longer, OK.

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Strategic Management – Spring 2013