Transcript Figure 2.1: The Five Tasks of Strategic Management

Figure 2.1: The Five Stages of Strategic
Management
Stage1
Develop a
Strategic
Vision
(and
Mission)
Stage 2
Stage 3
Setting
Objectives
Craft a
Strategy
to Achieve
Objectives
and Vision
Stage 4
Implement
and
Execute
Strategy
Stage 5
Monitor,
Evaluate,
and Take
Corrective
Actions
Revise as
Needed
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Stage 1: Strategic Vision
Purpose
Strategic Vision vs. Mission Statement
Importance
Communicating the Vision
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Stage 2: Setting Objectives
Purpose
Objectives vs. Goals
Strategic vs. Financial
Short-term and Long-term
Balanced Scorecard
Strategic Intent
Importance
3
Stage 3: Crafting a Strategy
Purpose
What is Strategy?
5 Definitions of Strategy
Importance
What to Look for?
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Figure 1.1: Identifying a Company’s
Strategy -- What to Look For
Actions to strengthen
bargaining position
Actions to build
resources &
capabilities
Actions to differentiate
products
Actions to lower
costs
Pattern
of Actions
That Define
Strategy
Actions and
approaches used in
functional areas
Actions to pursue
new opportunities or
defend against threats
Actions to alter
geographic
coverage
Actions to merge or
acquire rival companies
Actions to form strategic
alliances and collaborative
partnerships
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Figure 2.2: A Company’s Strategy-Making
Hierarchy
Corporate-Level
Managers
Corporate
Strategy
Two-Way Influence
Business-Level
Managers
Business Strategies
Two-Way Influence
Functional
Managers
Functional-Area Strategies
Two-Way Influence
Operating
Managers
Operating Strategies
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Uniting the Strategy Making Effort
Corporate-Level
Managers
Business-Level
Managers
Functional
Managers
Plant Managers,
Lower-Level
Supervisors
Corporate-wide
Strategic
Vision
Corporate
Level
Objectives
Corporate
Level
Strategy
Two-Way Influence
Two-Way Influence
Two-Way Influence
Business
Level Strategic
Vision
Business
Level
Objectives
Business
Level
Strategies
Two-Way Influence
Two-Way Influence
Two-Way Influence
Functional
Missions
Functional
Objectives
Functional
Strategies
Two-Way Influence
Two-Way Influence
Two-Way Influence
Operating
Missions
Operating
Objectives
Operating
Strategies
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What is a Strategic Plan?
Where firm is headed -Strategic vision and
business mission
Short and long term performance
targets -- Strategic and
financial objectives
Action approaches to achieve
targeted results -- A
comprehensive strategy
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3 Tests of a Winning Strategy
 Goodness of Fit Test
How well is strategy matched to a firm’s
internal and external situation?
 Competitive Advantage Test
Does the strategy lead to a sustainable
competitive advantage?
 Performance Test
Does strategy boost firm performance?
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Stage 4: Strategy Implementation
Creating FITS
 Internal Fits
People, competences, structure,
policies/SOPs, best practices,
support systems, rewards system,
culture, budgets, and leadership.
 External
Industry and macroenvironment.
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Figure 10.1: The Eight Components
of Strategy Execution
Building a
Capable
Organization
Exercising
Strategic
Leadership
Shaping Corporate
Culture to Fit
Strategy
Allocating
Resources
Strategy
Implementer’s
Action Agenda
Tying Rewards
to Achievement
of Key Strategic Targets
Establishing StrategySupportive Policies
Instituting Best
Practices for
Continuous
Improvement
Installing
Support
Systems
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Figure 2.1: The Five Stages of Strategic
Management
Stage1
Develop a
Strategic
Vision
(and
Mission)
Stage 2
Stage 3
Setting
Objectives
Craft a
Strategy
to Achieve
Objectives
and Vision
Stage 4
Implement
and
Execute
Strategy
Stage 5
Monitor,
Evaluate,
and Take
Corrective
Actions
Revise as
Needed
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Other Strategy Issues
 Business Model versus Strategy
 Role of the Board of Directors
 Linking Strategy with Ethics and
Corporate Responsibility
 Who Performs the 5 Tasks?
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