Professional Documents
Culture Documents
Chapter One
Chapter One
Strategic Management:
Concepts & Cases
13th Edition
Fred David
Strategy formulation
Strategy implementation
Strategy evaluation
Long-Term Objectives
Alternative Strategies
Strategy Selection
Annual Objectives
Policies
Employee Motivation
Resource Allocation
Internal Review
External Review
Performance Measurement
Corrective Action
Competitive advantage
Strategists
Vision and mission statements
External opportunities and threats
Internal strengths and weaknesses
Long-term objectives
Strategies
Annual objectives
Policies
Copyright © 2011 Pearson Education, Inc. Ch 1 -8
Publishing as Prentice Hall
Strategic Management is
Gaining and Maintaining
Competitive Advantage
Gather Information
Analyze Information
Organize Information
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
Analysis of Trends
Economic
Social
Cultural
Demographic/Environmental
Political, Legal, Governmental
Technological
Competitors
Take
Takeadvantage
advantageof
of
External
ExternalOpportunities
Opportunities
Strategy Formulation
Avoid/minimize
Avoid/minimizeimpact
impactof
of
External
ExternalThreats
Threats
Controllable
activities performed
especially well or poorly
Management
Marketing
Finance/Accounting
Production/Operations
Financial Ratios
Performance Measures
Internal Factors
Industry Averages
Survey Data
Aid in evaluation
Create synergy
Reveal priorities
Focus coordination
Diversification
Acquisition
Product development
Market penetration
Retrenchment
Divestiture
Liquidation
Joint venture
StrategicManagement Process
Dynamic & continuous
Communication is a key to
successful strategic management
Nonfinancial Benefits
Enhanced awareness of threats
Improved understanding of competitors’ strategies
Increased employee productivity
Reduced resistance to change
Clearer understanding of performance-reward
relationship
Enhanced problem-prevention capabilities