strategic thinking mahesh p. joshi director of innovation and entrepreneurship program, and...
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Joshi - Strategic Thinking 1
Strategic Thinking
Mahesh P. Joshi
Director of Innovation and Entrepreneurship Program, andAssociate Professor of Global Strategy and Entrepreneurship
School of Management, George Mason University
President Joshi International, Inc. [email protected]
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The Definition of Strategic Management
The Art and Science of Formulating, Implementing, and
Evaluating Cross-Functional Decisions That Enable an Organization to Achieve Its
Objectives
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The Basis for Good Strategic Decisions
Intuition + Analysis
Effective Strategic Decisions
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Business Mission
Strategy Formulation
External Opportunities and
Threats
Internal Strengths and Weaknesses
Keys to Formulating Strategies
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A Comprehensive Strategic Management Model
DevelopMission
Statement
Establish Long-term
Objectives
Generate,Evaluate,
andSelect
Strategies
Establish Policies and
AnnualObjectives
AllocateResources
Measureand
EvaluatePerformance
PerformExternal
Audit
PerformInternalAudit
Feedback
Strategy Formulation
Strategy Implementation
Strategy Evaluation
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The Stages and Activities in the Strategic Management Process
Stages Activities
Strategy formulation
Strategy evaluation
Strategy implementation
Conduct research
Establish annual
objectives
Review internal and external factors
Integrate intuition with analysis
Devise policies
Measure performance
Make decisions
Allocate resources
Take corrective
action
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What is Strategy?
Defining Strategy • Strategy is the overall plan for
deploying resources to establish a favorable position.–Plan–Resources–Position
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What is Strategy?
• Characteristics of strategic decisions:– Important.– Involve a significant commitment of
resources.– Not easily reversible.
• Strategy Vs. Tactics– Tactic is a scheme for a specific
maneuver
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Robin Hood
• Analyzing the case• What is the main problem here?• How can this problem be solved? What
needs to be changed?
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Intended Deliberate RealizedStrategy Strategy Strategy
Unrealized EmergentStrategy Strategy
FIO Decisions FinancingInvestingOperations
Intended or Realized Strategy
Intended RealizedDeliberate
Decisions by Organization to manage changes in the environment and possible deployment of resources
Emergent
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Core Logic &Strategic Choices
Value Network
Create Value Capture Value
• Mission• Customer• Market Scope• Capabilities• Offering
• Resources/Assets• Processes/Activities
• Customer Relationship• Information Flow• Product/Service Flow• Supplier
• Cost• Profits• Financial Aspects
Defining a Business Model: Practical
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Business Model: An Application
• From Robin Hood to your organizations
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Strategy and Business Model: A Link
THE FIRM
Goals & Values
Resources &Capabilities
Structure & Systems
THE INDUSTRYENVIRONMENT
CompetitorsCustomersSuppliers
STRATEGY
Executed Through Processes of A Business Model
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Our Focus Today
ContextExternal: Industry and other factors AND Internal: Assets and its organization
Action about Asset Acquisition & Deployment of the assets
External changes PerformanceLong Term survival
Strategic Thinking Through Business Models
MissionWhy a firm ExistsWhat Societal Need is fulfilled
ObjectivesStrategic GoalsLong TermShort term People People
StrategicManagersBOD
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McKinsey 7S model
Joshi - Strategic Thinking