Transcript STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT
SESSIONS & SEMINARS
October 3 & 10 … 2013
Session 1 - 4
Our goal? Learn about & practice all steps
of strategic planning process
• Choose a company for which to formulate a strategic business plan
• Identify / formulate:
- mission statement – framework w/in which strategy
shall be crafted
- corporate vision – where do we want to be in # years
- business aims -> specific objectives
• Scan the environment – carry out external, internal & industry
analysis -> situational analysis
-> Internal analysis - core business & competencies, resources
available, corp. structure, required inputs,
corp. culture
=> IFAS (Internal Factor Analysis Summary)
Our goal? Practice all steps of strategic
planning process
• Environment scanning cont’d:
-> External analysis - PEST(LE) => EFAS (External Factor Analysis
Summary)
- Industry Analysis (task environment):
-> Porter’s Five (Six) forces => Industry Matrix
- Situational Analysis – finding a strategic fit b/w external opportunities & internal strengths
- mitigating harmful effects of external threats
due to internal weaknesses
=> SFAS (Strategic Factor Analysis Summary) => SWOT analysis
Strategic Management Model
Existing
Existing business model
Mission, vision, goals, objectives, corp.
values
External
analysis ->
opportunities,
threats
SWOT =>
Strategic
choice
Functional-level strategies
Business-level strategies
Corporate-level strategies
Strategy implementation
Internal
analysis ->
strengths,
weaknesses
Strategic Management Cycle
Strategic management – mgmt for
distant horizons
• Series of destinations which are coming closer with
time for everyone
– Where was the company yesterday? (if applicable)
– Where is the company now ($, ext. environment, market)? What
conditions is it in (internally)?
– Where will the company be tomorrow? vs. Where can the company
be tomorrow? vs. Where is the company likely to be tomorrow – if we
do a, b, c, or nothing at all?
• Nothing happens by itself =>
1. => What are the business objectives? -> WHERE TO?
2. => What are the best ways to achieve these objectives? ->
HOW, WHEN?
3. => What resources are necessary to execute the plan? ->
w/WHAT & WHOM
Which sector? What company? … your
choice
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http://www.top500.de/g0037200.htm
http://www.europages.co.uk/
http://www.hbi.cz/index.php?Lang=en
http://www.hoovers.com/
http://www.marketresearch.com/
http://www.business.com/
http://www.expats.cz/directory/#482
http://www.rusmarket.com/
http://www.thomasnet.com/
http://no1construction.com/
http://dir.yahoo.com/business_and_economy/directories/companies/
Mission statement
• Statement of purpose of existence and operations of a
company w/info including:
– Why are we here? -> purpose – PAST & NOW and FUTURE
– Corp. aims
– How do we add value to stakeholders? -> How do we fulfill our
mission?
The WHY …
A
B
C
Mission statement
• More specific mission statements may spell out:
– What target market we wish to serve?
– With what good/service -> product?
– How are we unique - w/product, w/how we operate (e.g.
environmental friendly)
• Problems, questions?
Which companies do these mission statements
represent?
• "To experience the joy of advancing and applying technology for the
benefit of the public“
• "To build a place where people can come to find and discover anything
they might want to buy online."
• "To produce high-quality, low cost, easy to use products that incorporate
high technology for the individual. We are proving that high technology
does not have to be intimidating for non-computer experts.
Mission statements
Take a wild guess
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BMW vs. Mercedes
McDonalds vs. KFC
IBM vs. Apple
Acer vs. Dell
Google vs. Yahoo
Mission statements – conclusion?
Questions to consider
• Why are some mission statements similar?
• Why do they look so broad or general?
• Would it pay to narrow a mission statement down?
Your task
• For the company of your choice, formulate a mission
statement in your own words based on your current
knowledge about the company.
• Identify the mission statement based on your research.
Vision statement
• http://mystrategicplan.com/resources/topic/visionstatements/
• Company image in the future
– What it wants to become by a certain point in time -> where it wants
to go and how it intends to get there
– May also be roughly considered as a framework for strategic planning
• The audience? …. Stakeholders & market
– Employees – it provides direction and guidelines for their conduct and
should be inspirational
– Banks – what they may be likely to finance
– Shareholders – what projects are likely to bring more $ to them
– Consumers / customers – what products to keep an eye for …
Corporate vision
McDonalds:
“… be the world's best quick service restaurant experience. Being
the best means providing outstanding quality, service, cleanliness, and value, so that
we make every customer in every restaurant smile.“
Toyota:
"To become the most successful and respected lift truck company in the U.S.”
Avery Dennison :
"To be recognized as the world's best coating and converting company by providing
innovative decorating, information transfer and bonding solutions that enable our
customers' success.“
- Manufacturing pressure sensitive labeling materials, retail apparel ticketing, graphics
imaging media , office products, specialty tapes
Corporate vision
Your task
• Identify the corporate vision for your company
• Can be found directly in the vision statement or derived from a mix
of information provided by top management.
• Will be subject to re-evaluation / reconsideration after SWOT
analysis based on EFAS, IFAS, and SFAS are performed