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Strategic Management and Planning in a Global Environment Chapter 4 Part 2  Planning Challenges in the 21st Century
[object Object],[object Object],[object Object],[object Object],[object Object],LEARNING OBJECTIVES When you have finished studying this chapter, you should be able to:
[object Object],[object Object],[object Object],LEARNING OBJECTIVES  (cont’d) When you have finished studying this chapter, you should be able to:
Strategic Planning  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 4.1   The Strategic Management Process
Key Terms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key Terms (cont’d) ,[object Object],[object Object],[object Object],[object Object]
Benefits of Strategic Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Analysis: Assessment in a Global Environment ,[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 4. 2  The Components of Strategic Analysis
SWOT Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Assessing the Mission of an Organization ,[object Object],[object Object],[object Object],[object Object],[object Object]
Key Terms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Table 4. 1  Ford Motor Company’s Mission Statement Ford Motor Company Our Vision To become the world’s leading consumer company for automotive products and services. Our Mission We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve people’s lives. Our Values Our business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone’s contribution. The health and safety of our people are paramount. We are a leader in environmental responsibility. Our integrity is never compromised and we make a positive contribution to society. We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders. Source:  Ford Motor Co. website (http://www.ford.com), 30 June 2005.
External Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
External Analysis Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 4. 3  Dimensions of the Global External Environment
Table 4.2 Sample Issues in the General Environment Economic •  Inflation rates •  Unemployment rates •  Wage rates •  Exchange rates •  Stock market fluctuations •  Per capita income •  GDP trends •  Economic development Sociocultural •  Norms and values •  Demographic trends •  Age groups •  Regional shifts in population •  Household composition •  Diversity •  Ecological awareness •  Life expectancy Technological •  Spending on research and development •  Internet availability •  Availability of information technology •  Production technology trends •  Productivity improvements •  Telecommunications infrastructure Political–Legal •  Tax laws •  Environmental protection •  International trade regulation •  Antitrust regulation •  Federal Reserve policy •  Intellectual property and patent laws
External Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 4. 4  Five Forces Model of Industry Analysis Source:  Adapted from Michael E. Porter, “How Competitive Forces Shape Strategy,”  Harvard Business Review  57, no. 2 (March/April 1979): 137–145.
Internal Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Table 4. 3 Internal Factors for Analysis Marketing  Operations Product, service  Productivity Brand equity  Quality Market research  Facilities Sales force  Supply chain Market share  Technology Size of market  Purchasing Distribution channels  Safety Price  Ecological issues Promotion Finance Profitability Revenue Asset utilization Debt/leverage Equity Per unit costs Profit margins Cash flow Human Resources Skills Selection Training and development Leadership Motivation Communication Rewards Other Factors Organization culture Overall control Information system Information technology Organizational structure
Strategy Formulation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Casting the Vision for the Organization ,[object Object],[object Object],[object Object],[object Object]
Setting Strategic Goals ,[object Object],[object Object],[object Object],[object Object],[object Object]
Identifying Strategic Alternatives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Identifying Strategic Alternatives  (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 4. 5  Generic Strategies Matrix
Evaluating and Choosing Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategy Implementation: Focusing on Results ,[object Object],[object Object],[object Object],[object Object]
Evaluation and Control: Achieving Effectiveness and Efficiency ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Information Technology and Strategic Planning ,[object Object],[object Object],[object Object],[object Object]
Institutionalizing Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Importance of Organizational Culture ,[object Object],[object Object],[object Object],[object Object]
Organizational Leadership ,[object Object],[object Object],[object Object]
Implications for Leaders ,[object Object],[object Object],[object Object],[object Object],[object Object]
Implications for Leaders (cont’d) ,[object Object],[object Object],[object Object],[object Object]

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Chap04

  • 1. Strategic Management and Planning in a Global Environment Chapter 4 Part 2 Planning Challenges in the 21st Century
  • 2.
  • 3.
  • 4.
  • 5. Figure 4.1 The Strategic Management Process
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Figure 4. 2 The Components of Strategic Analysis
  • 11.
  • 12.
  • 13.
  • 14. Table 4. 1 Ford Motor Company’s Mission Statement Ford Motor Company Our Vision To become the world’s leading consumer company for automotive products and services. Our Mission We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve people’s lives. Our Values Our business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone’s contribution. The health and safety of our people are paramount. We are a leader in environmental responsibility. Our integrity is never compromised and we make a positive contribution to society. We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders. Source: Ford Motor Co. website (http://www.ford.com), 30 June 2005.
  • 15.
  • 16.
  • 17. Figure 4. 3 Dimensions of the Global External Environment
  • 18. Table 4.2 Sample Issues in the General Environment Economic • Inflation rates • Unemployment rates • Wage rates • Exchange rates • Stock market fluctuations • Per capita income • GDP trends • Economic development Sociocultural • Norms and values • Demographic trends • Age groups • Regional shifts in population • Household composition • Diversity • Ecological awareness • Life expectancy Technological • Spending on research and development • Internet availability • Availability of information technology • Production technology trends • Productivity improvements • Telecommunications infrastructure Political–Legal • Tax laws • Environmental protection • International trade regulation • Antitrust regulation • Federal Reserve policy • Intellectual property and patent laws
  • 19.
  • 20. Figure 4. 4 Five Forces Model of Industry Analysis Source: Adapted from Michael E. Porter, “How Competitive Forces Shape Strategy,” Harvard Business Review 57, no. 2 (March/April 1979): 137–145.
  • 21.
  • 22. Table 4. 3 Internal Factors for Analysis Marketing Operations Product, service Productivity Brand equity Quality Market research Facilities Sales force Supply chain Market share Technology Size of market Purchasing Distribution channels Safety Price Ecological issues Promotion Finance Profitability Revenue Asset utilization Debt/leverage Equity Per unit costs Profit margins Cash flow Human Resources Skills Selection Training and development Leadership Motivation Communication Rewards Other Factors Organization culture Overall control Information system Information technology Organizational structure
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28. Figure 4. 5 Generic Strategies Matrix
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.