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Strategic Planning: LIS 580: Spring 2006 Instructor-Michael Crandall
Strategic Planning: LIS 580: Spring 2006 Instructor-Michael Crandall
Module 5
LIS 580: Spring 2006
Instructor- Michael Crandall
Roadmap
Checklist 5.1
The Strategic Management Process
Define the business and its mission.
Perform external and internal audits.
Translate the mission into strategic
goals.
Generate and select strategies to
reach strategic goals.
Implement the strategy.
Evaluate performance.
G.Dessler, 2003
Source: Adapted from Fred David, Strategic Management (Upper Saddle River, NJ: Prentice-Hall, 2001), p. 77.
FIGURE 51
G.Dessler, 2003
Where we want to go
What we want to become
What we want to accomplish
Why it is important
G.Dessler, 2003
Strategies in Brief
COMPANY
COMPANY
STRATEGIC
STRATEGICPRINCIPLE
PRINCIPLE
America
AmericaOnline
Online
Consumer
Consumerconnectivity
connectivityfirstanytime,
firstanytime,anywhere
anywhere
Dell
Dell
Be
Bedirect
direct
eBay
eBay
Focus
Focuson
ontrading
tradingcommunities
communities
General
GeneralElectric
Electric
Be
Benumber
numberone
oneor
ornumber
numbertwo
twoin
inevery
every
industry
industryin
inwhich
whichwe
wecompete,
compete,or
orget
getout
out
Southwest
SouthwestAirlines
Airlines
Meet
Meetcustomers
customersshort-haul
short-haultravel
travelneeds
needsat
atfares
fares
competitive
with
the
cost
of
automobile
travel
competitive with the cost of automobile travel
Vanguard
Vanguard
Unmatchable
Unmatchablevalue
valuefor
forthe
theinvestor-owner
investor-owner
Wal-Mart
Wal-Mart
Low
Lowprices,
prices,every
everyday
day
Source: Arit Gadiesh and James Gilbert, Frontline Action, Harvard Business Review, May 2001, p. 74.
FIGURE 53
G.Dessler, 2003
Checklist 5.2
How to Test the Quality of Your
Strategy
Does your strategy fit with whats going on in
the environment?
Does your strategy exploit your key resources?
Will competitors have difficulty keeping up with
you?
Are the elements of your strategy internally
consistent?
Do you have enough resources to pursue this
strategy?
Can your strategy be implemented?
G.Dessler, 2003
FIGURE 54
G.Dessler, 2003
Strategy Types
Corporate
Concentration
Vertical integration
Diversification
Status quo
Investment reduction
Strategic alliances/joint ventures
Competitive
Cost leadership
Differentiation
Focus
April 11, 2006
10
Source: Reprinted with the permission of The Free Press, a division of Simon & Schuster from Competitive Strategy:
Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright 1980 by The Free Press.
FIGURE 55
G.Dessler, 2003
11
FIGURE 56
G.Dessler, 2003
12
FIGURE 77
G.Dessler, 2003
13
FIGURE 58
G.Dessler, 2003
14
Checklist 5.3
How to Benchmark
Focus on a specific problem and define it
carefully
Use employees who will actually
implement changes to identify the bestpractices companies and to conduct onsite studies.
Be willing to share information with others.
Avoid sensitive issues such as pricing, and
dont look for new product information.
Keep information you receive confidential.
G.Dessler, 2003
15
Source: Fred
David, Strategic
Management
(Upper Saddle
River, NJ:
Prentice-Hall,
2001), p. 207.
FIGURE 59
G.Dessler, 2003
16
BCG Matrix
FIGURE 510
G.Dessler, 2003
17
Checklist 5.4
Scenario Planning Principles
18
19
Source: Reprinted by permission of Harvard Business Review. From What Is Strategy? by Michael E. Porter,
NovemberDecember 1996. Copyright 1996 by the President and Fellows of Harvard College; all rights reserved.
FIGURE 511
G.Dessler, 2003
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Next Time
Guest lecture
Mike Eisenberg, Dean Emeritus, the Information
School
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