Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
STRATEGY
Chapter 9
STRATEGIC MANAGEMENT
What managers do to develop the
organizations strategies. Its an important
task involving all the basic management
functionsplanning, organizing, leading, and
controlling.
Strategies
The plans for how the organization will do
whatever its in business to do, how it will
compete successfully, and how it will attract
and satisfy its customers in order to achieve
its goals.
Identify the
organization's
current mission, goals,
Formulate
SWOT Analysis
Strategies
Implement
Evaluate
Strategies
Results
and strategies
Internal Analysis
strengths
weaknesses
STRATEGIC MANAGEMENT
PROCESS
Goals:
STRATEGIC MANAGEMENT
PROCESS (CONTD)
Step
Steps
STRATEGIC MANAGEMENT
PROCESS (CONTD)
STRATEGIC MANAGEMENT
PROCESS (CONTD)
effectively fitting
organizational structure and activities to the
environment
The environment dictates the chosen strategy;
effective strategy implementation requires an
organizational structure matched to its
requirements
Multibusiness
Level
Corporation
Business
Level
Functional
Research and
Level
Development
Strategic
Strategic
Strategic
Business Unit 1
Business Unit 2
Business Unit 3
Manufacturing
Marketing
Human
Resources
Finance
TYPES OF ORGANIZATIONAL
STRATEGIES
Corporate-level Strategies
Top
markets
Stability: maintenance of the status quo
Renewal: strategies to address declining
performance
CORPORATE-LEVEL STRATEGIES
Growth Strategy
Seeking
Horizontal
integration
Diversification
811
related or unrelated
GROWTH STRATEGIES
Concentration
Focusing
Vertical
Integration
Backward vertical integration: attempting to gain control of inputs
(become a self-supplier).
E.g. Amazon.com backward vertically integrated when it became not
only a bookseller but a book publisher.
Forward
812
Horizontal Integration
Combining operations with another competitor in the same
industry to increase competitive strengths and lower
competition among industry rivals.
E.g. Standard and Chartered acquired Grindlays bank to
acquire more market share
Related Diversification
Expanding by merging with or acquiring firms in different,
but related industries that are strategic fits.
e.g. clothes manufacturers might diversify with a brand
shop, in whichthey selltheir clothes
Unrelated Diversification
Growing by merging with or acquiring firms in unrelated
industries where higher financial returns are possible.
813
CORPORATE-LEVEL STRATEGIES
(CONTD)
Stability Strategy
A
14
CORPORATE-LEVEL STRATEGIES
(CONTD)
Renewal
Strategy
Developing strategies to counter organization
weaknesses that are leading to performance
declines.
815
BCG Matrix
Developed
Considers
Classifies
firms as:
16
High
Low
Market Share
Low
Anticipated
Growth Rate
Stars
Heavily invest
Cash
Cows
Milk for cash
Question
Marks
Sell off or
turn into stars
Dogs
Sell off or
liquidate
17
COMPETITIVE STRATEGIES
818
Competitive Advantage
An
Represents
819
820
Threat of Substitutes
The
Current Rivalry
Intensity
23
COMPETITIVE STRATEGIES
824
COMPETITIVE STRATEGIES
825
COMPETITIVE STRATEGIES
Differentiation Strategy
Attempting
Product
Practically
826
COMPETITIVE STRATEGIES
Focus Strategy
Using
Segments
827
TODAYS IMPORTANT
ORGANIZATIONAL STRATEGIES
e-BUSINESS STRATEGIES
Cost Leadership
On-line activities: bidding, order processing,
inventory control, recruitment and hiring
Differentiation
Internet-based knowledge systems, online
ordering and customer support
Focus
Chat rooms and discussion boards, targeted
Web sites
829
Innovation Strategies
Possible Events
Radical
breakthroughs in products.
Application of existing technology to new uses.
research
Product development
Process innovation
First Mover
An
830
Advantages
831
Opportunity to begin
building customer
relationships and
customer loyalty
Disadvantages
Uncertainty over
exact direction
technology and
market will go
Risk of competitors
imitating innovations
Financial and
strategic risks
High development
costs