Professional Documents
Culture Documents
Smdavid 1217779662307914 8
Smdavid 1217779662307914 8
Fred R. David
Prentice-Hall, Inc.
Sixth Edition
Chapter 1
Should I
Should we
learn a foreign
import?
language?
Should we
Should we set
upgrade our
up a Web site?
PCs?
Should we buy
Should we our sales staff
outsource MIS? laptops?
Preserving the Natural
Environment is an Important
Strategic Issue
Intuition + Analysis
Economic Technological
Social Governmental
Cultural Political
Demographic Environmental
Legal
Fourteen Key Internal Forces
Management
Marketing Manufacturing
Purchasing Distribution
Key Internal Forces (cont.)
Finance/Accounting
Packaging Promotion
Human Employee/
Resource Manager
Management Relations
Computer
Vendor Information
Relations Systems
Keys to Formulating Strategies
Business Mission
External Internal
Opportunities Strengths and
and Threats Weaknesses
Strategy Formulation
A Comprehensive Strategic Management Model
Feedback
Perform
External
Audit
Generate,
Establish Establish Measure
Develop Evaluate,
Long- Policies and Allocate and
Mission and
term Annual Resources Evaluate
Statement Select
Objectives Objectives Performance
Strategies
Perform
Internal
Audit
Environment
Stable environment
Turbulent environment
Little competition
Many markets and customers
Single market and customer
Competition severe
Forces Influencing Design of Strategic
Management Systems
Toward more Complexity of Toward less
formality and formality and
more details Production Process fewer details
Long production lead times
Short production lead times
Capital intensive
Labor intensive
Integrated manufacturing processes
Simple manufacturing processes
High technology
Low technology
Market reaction time for new
product is short
Market reaction time is long
Forces Influencing Design of Strategic
Management Systems
Toward more Toward less
formality and formality and
more details
Nature of Problems fewer details
Purpose of Planning
System
Coordinate division activities
Train managers
Benefits of Strategic Management