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David sm13 ppt_01
1.
Chapter 1 The Nature
of Strategic Management Strategic Management: Concepts & Cases 13th Edition Fred David Copyright © 2011 Pearson Education, Inc. Ch 1 -1
2.
Strategic Management –Defined
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives Copyright © 2011 Pearson Education, Inc. Ch 1 -2
3.
Strategic Management In essence,
the strategic plan is a company’s game plan Copyright © 2011 Pearson Education, Inc. Ch 1 -3
4.
3 Stages of
the Strategic Management Process Strategy formulation Strategy implementation Strategy evaluation Copyright © 2011 Pearson Education, Inc. Ch 1 -4
5.
Strategy Formulation
Vision & Mission External Opportunities & Threats Internal Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection Copyright © 2011 Pearson Education, Inc. Ch 1 -5
6.
Strategy Implementation
Annual Objectives Policies Employee Motivation Resource Allocation Copyright © 2011 Pearson Education, Inc. Ch 1 -6
7.
Strategy Evaluation
Internal Review External Review Performance Measurement Corrective Action Copyright © 2011 Pearson Education, Inc. Ch 1 -7
8.
Key Terms in
Strategic Management Competitive advantage Strategists Vision and mission statements External opportunities and threats Internal strengths and weaknesses Long-term objectives Strategies Annual objectives Policies Copyright © 2011 Pearson Education, Inc. Ch 1 -8
9.
Strategic Management is Gaining
and Maintaining Competitive Advantage Anything that a firm does especially well compared to rival firms Copyright © 2011 Pearson Education, Inc. Ch 1 -9
10.
Strategists
Gather Information Analyze Information Organize Information Copyright © 2011 Pearson Education, Inc. Ch 1 -10
11.
Vision and Mission
Statements Vision Statement – What do we want to become? Mission Statement – What is our business? Copyright © 2011 Pearson Education, Inc. Ch 1 -11
12.
External Opportunities and
Threats Analysis of Trends Economic Social Cultural Demographic/Environmental Political, Legal, Governmental Technological Competitors Copyright © 2011 Pearson Education, Inc. Ch 1 -12
13.
External Opportunities and
Threats Basic Tenet of Strategic Management Take advantage of Take advantage of External Opportunities External Opportunities Strategy Formulation Avoid/minimize impact of Avoid/minimize impact of External Threats External Threats Copyright © 2011 Pearson Education, Inc. Ch 1 -13
14.
Internal Strengths and
Weaknesses Controllable activities performed especially well or poorly Determined relative to competitors Copyright © 2011 Pearson Education, Inc. Ch 1 -14
15.
Internal Strengths and
Weaknesses Typically located in functional areas of the firm Management Marketing Finance/Accounting Production/Operations Research & Development Management Information Systems Copyright © 2011 Pearson Education, Inc. Ch 1 -15
16.
Internal Strengths and
Weaknesses Assessing the Internal Environment Financial Ratios Performance Measures Internal Factors Industry Averages Survey Data Copyright © 2011 Pearson Education, Inc. Ch 1 -16
17.
Long-Term Objectives
Specific results that an organization seeks to achieve in pursuing its basic mission Long-term means more than one year Copyright © 2011 Pearson Education, Inc. Ch 1 -17
18.
Long-Term Objectives
Essential for ensuring the firm’s success Provide direction Aid in evaluation Create synergy Reveal priorities Focus coordination Provide basis for planning, organizing, motivating, and controlling Copyright © 2011 Pearson Education, Inc. Ch 1 -18
19.
Strategies Means
by which long-term objectives are achieved Copyright © 2011 Pearson Education, Inc. Ch 1 -19
20.
Strategies
Examples Geographic expansion Diversification Acquisition Product development Market penetration Retrenchment Divestiture Liquidation Joint venture Copyright © 2011 Pearson Education, Inc. Ch 1 -20
21.
Annual Objectives
Short-term milestones that firms must achieve to reach long-term objectives Copyright © 2011 Pearson Education, Inc. Ch 1 -21
22.
Policies
Means by which annual objectives will be achieved Copyright © 2011 Pearson Education, Inc. Ch 1 -22
23.
Copyright © 2011
Pearson Education, Inc. Ch 1 -23
24.
Strategic Management Model
StrategicManagement Process Dynamic & continuous More formal in larger organizations Copyright © 2011 Pearson Education, Inc. Ch 1 -24
25.
Strategic Management Communication
is a key to successful strategic management Copyright © 2011 Pearson Education, Inc. Ch 1 -25
26.
Benefits of Strategic
Management Copyright © 2011 Pearson Education, Inc. Ch 1 -26
27.
Benefits of Strategic
Management Nonfinancial Benefits Enhanced awareness of threats Improved understanding of competitors’ strategies Increased employee productivity Reduced resistance to change Clearer understanding of performance-reward relationship Enhanced problem-prevention capabilities Copyright © 2011 Pearson Education, Inc. Ch 1 -27
28.
Why Some Firms
Do No Strategic Planning Lack of knowledge of strategic planning Poor reward structures Fire fighting Waste of time Too expensive Laziness Content with success Copyright © 2011 Pearson Education, Inc. Ch 1 -28
29.
Why Some Firms
Do No Strategic Planning (continued) Fear of failure Overconfidence Prior bad experience Self-interest Fear of the unknown Honest difference of opinion Suspicion Copyright © 2011 Pearson Education, Inc. Ch 1 -29
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