basic concept of : strategy & strategic management
DESCRIPTION
STRATEGIC MANAGEMENT. BASIC CONCEPT OF : STRATEGY & STRATEGIC MANAGEMENT. Slide Presentation by : Riema Afriani. RAK_IM Telkom_MM Eks 23_CSBD MODULE_ 2009. STRATEGIC MANAGEMENT. 3 central questions in thinking strategically. Where are we now ? ( swot ) Where do we want to go ? (target) - PowerPoint PPT PresentationTRANSCRIPT
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BASIC CONCEPT OF : STRATEGY & STRATEGIC
MANAGEMENTSlide Presentation by : Riema Afriani
STRATEGIC MANAGEMENT
RAK_IM Telkom_MM Eks 23_CSBD MODULE_ 2009
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3 central questions in thinking strategically
STRATEGIC MANAGEMENT
1) Where are we now ? (swot)2) Where do we want to go ? (target)3) How will we get there ? (strategy?)
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The History of “Strategy”
STRATEGIC MANAGEMENT
has been borrowed from the military in the military, strategy is same with tactics strategy often refers to maneuvering troops into
position before the enemy is actually engaged “strategy is the art as a means to gain the object
of war"
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A combination of the words stratos, which meant “army”, and agein meaning “to lead”.
Greek Language (6th century BC)
What is Strategy?
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Process of formulating, implementing, and evaluating, strategies to accomplish long-term goals and sustain competitive advantage.
Strategic Management
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Basic ConceptsSTRATEGIC MANAGEMENT
What is strategy? Strategy as positioning. Strategy as visioning
Strategic Management? Set of managerial decisions and actions
that determines the long-run performance of a firm.
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The Essence of Strategy (Thompson & Strickland,2001)
STRATEGIC MANAGEMENT
Selecting one position that a company can claim as its own
A Strategic Position is simply the sum of company’s answers to the questions :1. Who should the company target as customers ?2. What products or services should the company
offer the targeted customers ?3. How the company efficiently conduct
business ?
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The Essence of Strategy (Wheelen & Hunger,2008)
STRATEGIC MANAGEMENT
Describe your company’s mission statement, vision and values…
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4 Phases ofStrategic Management
Basic financial planning Forecast-based planning Externally-oriented planning Strategic management
STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT
Challenges to Strategic Management
Globalization◦ Internationalization of markets and
corporationsElectronic Commerce
◦ Use of the Internet to conduct business transactions
Ethics and Governance
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Basic Model of Strategic Management
Four Basic Elements
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Environmental Scanning
The monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the firm.
STRATEGIC MANAGEMENT
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Opportunities & Threats (External)
Analysis of Trends:• Economic• Social• Cultural• Demographic/Environmental• Political, Legal, Governmental• Technological• Competitors
Environmental Scanning
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Strengths & Weaknesses (Internal)
Typically located in functional areas of the firm• Management• Marketing• Finance/Accounting• Production/Operations• Research & Development• Computer Information Systems
Environmental Scanning
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Strategy Formulation
Development of long-range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses.
STRATEGIC MANAGEMENT
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Vision Statement –What do we want to become?
Mission Statement –What is our business?
Strategy Formulation
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To be the happiest place on earth.
To be the world’s best quick service restaurant.
Vision Examples
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The Bellevue Hospital, with respect, compassion, integrity, and courage, honors the individuality and confidentiality of our patients, employees, and community, and is progressive in anticipating and providing future health care services.
Mission Statement Example
-- The Bellevue Hospital
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Strategy Implementation
Programs
Budgets
Procedures
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Strategy Evaluation & Control
Internal Review
External Review
Measuring Performance
Strategic audit
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Goals & Objectives
◦ Profitability (net profits)◦ Growth (increase in total assets, etc.)◦ Utilization of resources (ROE or ROI)◦ Market leadership (market share)
STRATEGIC MANAGEMENT
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ELEMENTS OF A DYNAMIC STRATEGYFind unique strategic position in current industry
Make transition from old position to new
Manage old & new positions simultaneously
Compete in this position by becoming better than industry competitor
Search for new strategic positions
Jump in to different industry, repeat process
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"Effective managers live in the present – but concentrate on the future." (James L. Hayes )
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THANK U