Professional Documents
Culture Documents
Strategic Management
Strategic Management
Process
It
It
consists of:
Analysis of the internal and external environment of the
firm.
Definition of the firms mission.
Formulation and implementation of strategies to create or
continue a competitive advantage.
Strategies
Competitors
Implement strategies
Assess strategic
outcomes
SWOT Analysis
Commonly
Step
A major
Components of External
Analysis
Scanning
Assessing
Monitoring
Forecasting
Competitor
Analysis
The Industry
Strategic
Groups
on
i
t
a
z
li
a
b
o
Gl
Techno
logical
Chang
es
ic
Econom
s
n
o
i
t
i
d
n
Co
Political/L
egal
Forces
Sociocultura
l
Condit
ions
Threat of
substitutes
Suppliers
Customers
Intensity of rivalry
among competitors
Company
Resource-based
4.
Strategy
3.
Potential for
sustainable
competitive
advantage
2.
1.
Capabilities
Resources
5.
Resource Types:
Tangible Resources
Assets
Include
Strategic
Resource Types:
Intangible Resources
Difficult
Often
Competitors
Strategically
Reputation
Technology
Human Capital
Analyzing Capabilities by
Functional Areas
Functional Area
Capability
Corporate Management
Information Management
Analyzing Capabilities by
Functional Areas (continued)
Functional Area
Capability
Manufacturing
Product Design
Design capability
Marketing
Technology
Source
Product
Design
Function
Manufacturing
Integration
Sophistication
Physical
Raw Materials
Characteristics
Patents
Capacity
Aesthetics
Product Process
Location
Quality
Product Choices
Procurement
Marketing
Service
Prices
Channels
Warranty
Advertising
Integration
Dealer Support
Promotion
Inventory
Availability
Sales Force
Warehousing
Speed
Package
Transport
Prices
Distribution
Strategic
Strategic
Strategy Formulation
The
Takes
place at:
Corporate-Level
Business-Level
Corporate-Level Strategy
The
This
of:
Portfolio mix
Type of diversification
Process of diversification
Portfolio Analysis
The
Two
1)
Medium
High
2)
3)
5)
6)
Low
Harvest
Medium
4)
Industry
Attractiveness
Hold
7)
8)
9)
High
Build
Annual Real
Rate of Market
Growth
?
Earnings: high, stable
Cash Flow: high stable
Strategy: milk
COW
Diversification Strategy
Type of Diversification
Concentration strategy
Vertical integration
strategy
Concentric
diversification strategy
Conglomerate
diversification
Process of Diversification
Acquisition and
restructuring strategies
Acquisition
Merger
International strategy
Business-Level Strategy
Deals
Firms
Strategy Implementation
Corporate
Entrepreneurs
hip and
Innovation
Strategic
Leadership
Organization
al Structure
and Controls
Cooperative
Strategies
Human
Resource
Strategies
Strategic Outcomes
Company
Profits
Growth of sales/market share
Growth of corporate assets
Reduced competitive threats
Innovations
Applications: Management Is
Everyones BusinessFor the Manager
An
Learning
Applications: Management Is
Everyones BusinessFor Managing
Teams
The
A key
Applications: Management Is
Everyones BusinessFor Individuals
Individual
Employees
Employee