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Introduction Management Strategic
Introduction Management Strategic
1
Themes in the Text
•Global Considerations –
impact virtually all strategic decisions
•E-commerce –
vital strategic management tool
•Natural environment –
important strategic issue
-2
Strategic Management –
Defined
3
Strategic Management
4
Strategic Management
achieves a firm’s success
through integration ––
Management Marketing
Finance/Accounting Production/Operations
5
Strategy Formulation
Long-Term Objectives
Alternative Strategies
Strategy Selection
6
Issues in Strategy
Formulation
New
Newbusiness
business
opportunities
opportunities
Businesses
Businessesto toabandon
abandon
Allocation
Allocationofofresources
resources
Expansion
Expansionor or
diversification
diversification
International
Internationalmarkets
markets
Mergers
Mergersororjoint
jointventures
ventures
Avoidance
Avoidanceof ofhostile
hostile
takeover
takeover
7
Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
8
Strategy
Implementation
Action
ActionStage
Stageof
ofStrategic
Strategic
Management
Management––
Most
Mostdifficult
difficultstage
stage
Mobilization
Mobilizationof of
employees
employees&&managers
managers
Interpersonal
Interpersonalskills
skills
critical
critical
Consensus
Consensuson ongoal
goal
pursuit
pursuit
9
Strategy Evaluation
Internal Review
External Review
Performance Metrics
Corrective Actions
10
Strategy
Evaluation
Final
FinalStage
Stageof
ofStrategic
Strategic
Management
Management
Subject
Subjecttotofuture
future
modification
modification
Today’s
Today’ssuccess
successnono
guarantee
guaranteeofoffuture
futuresuccess
success
New
New&&different
differentproblems
problems
Complacency
Complacencyleadsleadsto
to
demise
demise
11
Prime Task of
Strategic Management
12
Integrating Intuition and
Analysis
13
Integrating Intuition and
Analysis
Judgment
Feelings
14
Integrating Intuition &
Analysis
15
Integrating Intuition &
Analysis
Analytical Thinking
Intuitive Thinking
16
Adapting to Change
Timely changes
17
Strategic Management is
Gaining and Maintaining
Competitive Advantage
18
Achieving Sustained
Competitive Advantage
19
Adapting to Change
E-commerce
Demographics
Technology
21
Adapting to Change
Effective Adaptation
22
Adapting to Change – Key
Strategic Management
Questions
What kind of business should
we become?
Are we in the right fields
Are there new competitors?
What strategies should we
pursue?
How are our customers
changing?
23
Key Terms
24
Key Terms
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
25
Key Terms
26
Key Terms
27
Key Terms
Opportunities & Threats
28
Key Terms
Opportunities & Threats
Take
Takeadvantage
advantageof
of
External
ExternalOpportunities
Opportunities
Strategy Formulation
Avoid/minimize
Avoid/minimizeimpact
impactof
of
External
ExternalThreats
Threats
29
Key Terms
30
Key Terms
31
Key Terms
Strengths & Weaknesses
Assessing the Internal Environment
Financial Ratios
Performance Metrics
Internal Factors
Industry Averages
Survey Data
32
Key Terms
Long-term Objectives
33
Key Terms
Long-term Objectives
34
Key Terms
Strategies
35
Key Terms
Strategies
Some Examples
• Geographic expansion
• Diversification
• Acquisition
• Market penetration
• Retrenchment
• Liquidation
• Joint venture
36
Key Terms
Annual Objectives
37
Key Terms
Policies
38
Model Komprehensif Manajemen Stratejik
External
Audit
Implementasi
Visi Tujuan Menyusun, Implementasi Strategi: Mengukur &
& Jangka Evaluasi, Strategi: Pemasaran, Evaluasi
Misi Panjang Memilih Isu Finansial/Akt, Kinerja
Strategi Manajemen R&D, SI
Internal
Audit
Isu Global/Internasional
Formulasi Strategi Implementasi Evaluasi Strategi
Strategi
Strategic Management Model
43
Strategic Management Model
1. Identify Existing --
• Vision
• Mission
• Objectives
• Strategies
44
Strategic Management Model
45
Benefits of Strategic
Management
46
Benefits of Strategic
Management
Financial Benefits
• Improvement in sales
• Improvement in profitability
• Productivity improvement
47
Benefits of Strategic
Management
Non-Financial Benefits
48
Benefits of Strategic
Management (Greenley)
1. Identification of Opportunities
2. Objective view of management problems
3. Improved coordination & control
4. Minimizes adverse conditions & changes
5. Decisions that better support objectives
49
Benefits of Strategic
Management (Greenley – cont’d)
50
Benefits of Strategic
Management (Greenley – cont’d)
51
Why Some Firms Do No
Strategic Planning
52
Why Some Firms Do No
Strategic Planning
Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
Suspicion
53
Business Ethics & Strategic
Management
54
Business Ethics & Strategic
Management
55
Business Ethics & Strategic
Management
56
Business Ethics & Strategic
Management
Misleading advertising
Misleading labeling
Harm to the environment
Insider trading
Dumping flawed products on foreign markets
Poor product or service safety
Padding expense accounts
57
Natural Environment
Perspective
58
Natural Environment
Perspective
Voluntary standards
ISO 14001 standard for Environmental
Management System
Firms minimize harmful effects on
environment
59
The Nature of Global
Competition
International/multinational corporations
Parent company
Host country
60
The Nature of Global
Competition
Cultural differences
Norms
Values
Work ethic
61
Advantages of International
Operations
62
Advantages of International
Operations (cont’d)
63
Disadvantages of International
Operations
Difficult communications
Underestimate foreign competition
Cultural barriers to effective management
Complications arising from currency
differences
64