Transcript Management strategies

MANAGEMENT
STRATEGIES
THE ROOTS OF STRATEGY
 2000 year history – strategy derived from the Greek word
“stratcgos” stratus (meaning army) and “ago” (meaning
leading/moving). The Greeks first used the word to describe
managing military forces.
 Today:
 Strategy refers to the steps a manager must take to reach
objectives or to accomplish plans.
STRATEGIC MANAGEMENT
 Defined: Strategic management consists of the analysis,
decisions, and actions an organization undertakes in order to
create and sustain competitive advantages.
THREE LEVELS OF STRATEGY
 1 st level - Corporate Strategies - address the broad needs of
the industry and are generally tied to the mission statement
of the company.
 What is a Mission Statement ?
 Mission Statement – Describes why an organization is operating. Usually
business oriented but may also take on a social responsibility as well.
 Vision – identifies where the organization wants or intends to
be in the future.
MISSION STATEMENTS
T h e M i s s i on o f t h e P r o F o o t ba l l H a l l
of Fame is:
To h o n o r, p r e s e r v e , e d u c a t e a n d
promote. . .
 To honor individuals who have
made outstanding contributions
to professional football
To preser ve professional
football’s historic documents
and ar tifacts
To educate the public regarding
the origin, development and
growth of professional football
as an impor tant par t of
American culture
To promote the positive values
of the spor t
NBA Mission Statement
 NBA Mission Statement
VS
ASSESS
 You are Senior Management within a recovery organization that
has been established to address the recovery efforts of the
Jersey Shore after Hurricane Sandy.
1. Write a Mission Statement that describes the purpose and
vision of your organization.
 Features of a Mission Statement
1.
2.
3.
4.
Mission must be feasible and attainable. It should be possible to achieve it.
Mission should be clear enough so that any action can be taken.
It should be inspiring for the management, staff and society at large.
It should be precise enough, i.e., it should be neither too broad nor too
narrow.
5. It should be unique and distinctive to leave an impact in everyone’s mind.
6. It should be analytical, it should analyze the key components of the strategy.
7. It should be credible, i.e., all stakeholders should be able to believe it.
2. What type of Corporate Strategy would your organization use.
Reference your Mission Statement.
CORPORATE STRATEGIES
 4 specific corporate strategies
 Growth – help the organization decide the amount and direction of
growth.
 Stability – these strategies are used when an organization is satisfied
with their performance
 Defensive – retreat to what you know best.
 Combination –
BUSINESS STRATEGIES
 Narrower in scope than corporate strategies. Focus on a
specific business (Food venues at sports arenas)
 Examples of business strategies
 Cost Leadership – deliver the product or service more cheaply than
competitors
 Differentiation – Be unique in product or service delivery
 Focus – Concentrate on a particular market segment and surround it
with a quality product or service
 A year after the storm
ASSIGNMENT
 C h e c k o u t t h e D i s n ey We b s i te a n d s e a r c h fo r a n s we r s to t h e fo l l o w i n g q u e s t i o n s .
 A s a te e n a g e r w h o g r e w u p wa t c h i n g D i s n ey s h ow s , w h a t d o yo u t h i n k o f t h e a n i m a t i o n
g r a p h i c s ? W h e n a n s we r i n g r e fe r e n c e wo r k s o f ot h e r a n i m a t i o n c o m p a n i e s .
 W h a t i n te r a c t i v e fe a t u r e s a r e o n t h e we b s i t e ? ( l i s t 3 )
 M i s s i o n S t a t e m e n t o f D i s n ey:
 " T h e m i s s i o n o f T h e Wa l t D i s n ey C o m p a ny i s to b e o n e o f t h e wo r l d ' s l e a d i n g p r o d u c e r s
a n d p r o v i d e r s o f e n te r t a i n m e n t a n d i n fo r m a t i o n . U s i n g o u r p o r t fo l i o o f b r a n d s to
d i f f e r e n t i a t e o u r c o n te n t , s e r v i c e s a n d c o n s u m e r p r o d u c t s , we s e e k to d e v e l o p t h e m o s t
c r e a t i v e , i n n ov a t i v e a n d p r o fi t a b l e e n te r t a i n m e n t e x p e r i e n c e s a n d r e l a te d p r o d u c t s i n
t h e wo r l d . "
 B a s e d o n t h e M i s s i o n S t a te m e n t a b ov e w h a t C o r p o r a te S t r a te g y d o yo u t h i n k D i s n ey i s
u s i n g ? S u p p o r t yo u r a n s we r by r e fe r e n c i n g s e g m e n t s o f t h e i r M i s s i o n S t a te m e n t .
 D e s c r i b e t h e b u s i n e s s s t r a te g y o r s t r a te g i e s yo u t h i n k D i s n ey u s e s to r e a c h t h e
c h i l d r e n ’ s m a r ke t .
 D e s c r i b e t h e b u s i n e s s s t r a te g y o r s t r a te g i e s D i s n ey u s e s to r e a c h t h e p a r e n t ’ s m a r ke t .
EXTREME SPORTS
 Bossaball
 Crashed Ice
 Kronum
FUNCTIONAL STRATEGIES
 Govern an organization’s day -to-day operations. Relate to the
functions of a business, such as marketing, production, and
finance. This type of strategy is directly tied to the strategies
constructed at the corporate and business levels.
 Short-term in nature – less than one year
 Known as the most important strategies because of their need
for timeliness and flexibility.
STRATEGY FORMULATION VS STRATEGY
IMPLEMENTATION
Strategy Formulation
Strategy Implementation
Strategy Formulation includes planning and
decision-making involved in developing
organization’s strategic goals and plans.
Strategy implementation involves all those
means related to executing the strategic plans.
In short, Strategy Formulation is placing the
Forces before the action.
In short, Strategy Implementation is managing
forces during the action.
Strategy Formulation is an Entrepreneurial
Activity based on strategic decision-making.
Strategic Implementation is mainly an
Administrative Task based on strategic and
operational decisions.
Strategy Formulation emphasizes on
effectiveness
Strategy Implementation emphasizes on
efficiency.
Strategy Formulation is a rational process.
Strategy Implementation is basically an
operational process.
Strategy Formulation requires co-ordination
amoung few individuals.
Strategy Implementation requires co-ordination
among many individuals.
Strategy Formulation requires a great deal of
initiative and logical skills.
Strategy Implementation requires specific
motivational and leadership traits.
Strategic Formulation precedes Strategy
Implementation.
Strategy Implementation follows Strategy
Formulation.
STRATEGIC MANAGEMENT PROCESS
 Development – corporate and business strategies are
developed
 Policies and Rules
 Policies – guidelines to make decisions regarding specific recurring
situations (doping, specific wear)
 Rules – direction for conduct leave little room for imagination (rules
governing your game)
STRATEGIC MANAGEMENT PROCESS
 Environmental Analysis
 External Environment – everything that lies outside of an
organization’s control.
 Government regulations, economy, competition, technology, global affairs
and society
 Internal Environment – factors that are under the control of the
organization
 Collection of data, completion of reports, employees not care, falsification
of reports
 BMX Extreme Sport
STRATEGIC PLANNING TOOLS
 Environmental Scanning – a planning tool that helps
managers identify critical events from the external
environment that will have a direct impact on decision
making. (events may be known or unknown)
 SEM has 6 major external environments






Demographic trends
Economic trends
Political trends
Competitive Trends
Technological Trends
Cultural and lifestyle Trends
STRATEGIC MANAGEMENT TOOLS
 SWOT Analysis




Strengths
Weaknesses
Opportunities
Threats
 Benchmarking
ACTION AND REVIEW
 Action Phase:
 Organizational Structure must be in place
 Short-range goals must be constructed and implemented
 Construction of Functional strategies
 Review Phase:
 Key to accomplishing strategies
Good managers anticipate problems, develop contingency
plans, and meet obstacles head on.
ASSIGNMENT
 Situation: You and your partner have followed and completed
the strategic management process in the development of your
new extreme sport. Explain how you would complete the final
2 phases of the strategic management process.
 Implement – How will you introduce your sport to the world?
What channels will you follow to get the sport out to the
target audience of participants and viewers? What are your
short range financial goals? How will you market the extreme
sport?
 Contingency Plan – 6 months after you have introduced your
sport you are falling short in your financial goals, number of
participants and viewers. Write a contingency plan that will
address these issues.
REVIEW OF STRATEGIC MANAGEMENT
PROCESS
 5 steps:
Formulate the organization’s mission or purpose
Describe the business market that the organization will pursue
Set objectives for meeting the needs of this market.
Create and implement strategies to address market needs better
than competitors.
 Develop contingency (backup) plans for any needed adjustments.




ASSIGNMENT
 Create a collage with pictures and explanatory text that displays
an environmental scan of positive and negative forces that might
impact your favorite band’s admission into a Music Hall of Fame.




Requirements:
Minimum of 8 pictures in collage
Minimum of 4 external environments
Text explaining external environments used






Demographic trends
Economic trends
Political trends
Competitive Trends
Technological Trends
Cultural and lifestyle Trends
DO NOW:
 Contingency Plan – 6 months after you have introduced your
sport you are falling short in your financial goals, number of
participants and viewers. Write a contingency plan that will
address these issues.
ADVANTAGES OF STRATEGIC
MANAGEMENT
1. Prevents problems before they happen
2. Reinforces the strength of group decision making
3. Managers and employees tend to become empowered with
decision-making opportunities
4. Strategically managed firms usually do not have glaring
weaknesses
5. The entire organization tends to react more rapidly to new
opportunities and environmental changes.
RISKS OF STRATEGIC MANAGEMENT
1. Discipline needed in implementing strategic management
may not be easy to accomplish
2. Strategic managers must be cautious o f making
extravagant promises
3. Managers and employees may expect immediate rewards for
their roles in the strategic management process