STRATEGIC MANAGEMENT: Concepts and Cases for MBA Class 131-132 Zhang Yong Xian Jiaotong University,Main Issues to be Covered:,Strategic management-concept environment analysis-external and internal strategies at different levels strategy formulation strategy implementation strategy evaluation cases,Chapter 1,Strategic Management and introductory remarks,Chapter Outline,Five Tasks of Strategic Management Developing a Strategic Vision and Mission Setting Objectives Crafting a Strategy Implementing the Strategy Evaluating Performance and Initiating Corrective Adjustments Why Strategic Management Is a Process Who Performs the Tasks of Strategy? Benefits of “Managing Strategically” Terms to Remember,Thinking Strategically:The Three Big Strategic Questions,1. Where are we now - what is our situation? 2. Where do we want to go? Business(es) we want to be in and market positions we want to stake out Buyer needs and groups we want to serve Outcomes we want to achieve 3. How will we get there?,What Is Strategy?,Competitive moves and business approaches management employs in running a company Managements “game plan” to Please customers Position a company in its chosen market Compete successfully Achieve good business performance,Craft a Strategy to Achieve Objectives,Set Objectives,Develop a Strategic Vision pay an equitable wage; provide good training,Crafting Strategy Is anExercise in Entrepreneurship,Strategy-making is a market-driven and customer-driven activity that involves Risk-taking and venturesomeness Innovation and business creativity Keen eye for spotting market opportunities Keen observation of customer needs Choosing among alternatives,Characteristics ofEntrepreneurial Managers,Boldly pursue new strategic opportunities Emphasize out-innovating the competition Lead the way to improve firm performance Willing to be a first-mover and take risks Respond quickly and opportunistically to new developments Devise leading strategies,Why Do Strategies Evolve?,There is always an ongoing need to react to Shifting market conditions Fresh moves of competitors New technologies Evolving customer preferences Political and regulatory changes New windows of opportunity The crisis of the moment,What Is a Strategic Plan?,Where firm is headed - Strategic vision and business mission,Action approaches to achieve targeted results - A comprehensive strategy,Short and long term performance targets -Strategic and financial objectives,Implementing Strategy,Creating fits between way things are done and what it takes for effective strategy execution Getting the organization to execute strategy proficiently and efficiently Producing excellent results in a timely manner,The Fourth Task of Strategic Management,Strategy implementation is an internal, operations-driven activity involving organizing, budgeting, motivating, culture-building, supervising, and leading to “make the strategy work” as intended!,Strategy Implementation,What Does StrategyImplementation Include?,Building a capable organization Allocating resources to strategy-critical activities Establishing strategy-supportive policies Motivating people to pursue objectives Tying rewards to achievement of results Creating a strategy-supportive corporate culture Installing needed information, communication, and operating systems Instituting best practices for continuous improvement Exerting strategic leadership,Evaluating Performance,The tasks of strategy are not a one-time only exercise Times and conditions change Events unfold Better ways to do things emerge New managers with different ideas take over,The Fifth Task of Strategic Management,Evaluating Performance,Corrective adjustments Alter long-term direction Redefine the business Raise or lower performance objectives Modify the strategy Improve strategy execution,Characteristics of the Strategic Management Process,Need to perform tasks never goes away Boundaries among tasks are blurry Strategizing is not isolated from other managerial activities Time required comes in lumps and spurts The big challenge is to get the best strategy-supportive performance from employees, perfect current strategy, and improve strategy execution,Craft a Strategy to Achieve Objectives,Set Objectives,Develop a Strategic Vision a guiding concept for what the organization is trying to do and to become. Represents managements customized answer to the question “what is our business and what will it be.” A mission statement broadly outlines the organizations future direction and serves as a guiding concept for what the organization is to do and to become.,Strategic Vision,Organization Mission,Recap of Important Terms,Organizations targets for achievement; both short and long range objectives are needed. Financial performance targets a company wants to achieve. Targets relating to strengthening a companys overall market position and competitive viability.,Performance Objectives,Financial Objectives,Strategic Objectives,Recap of Important Term