1,1.The definition of strategy; 2.The strategic planning process. 3. The TOWS Matrix 4. The business portfolio matrix The hierarchy of strategies; The industrial analysis 7.Porters generic strategies; 8.Delphi technique;,Chapter objectives,2,1. Definition,Strategy is the determination of the mission and the basic long-term objectives of an enterprise, followed by the adoption of courses of action and allocation of resources necessary to achieve these aims.,Policies are general statements or understandings that guide managers thinking in decision making.,3,Understanding of strategy,Where are we? Where do you want to go? How can we get there?,4,Case study,What is the major business of Samsung? What is the main problem of most Korean conglomerates? What is the basic value of Samsung? According to the basic value and its philosophy, which are emphasized in Samsung? What can we learn from the case? ,5,2.The Strategic Planning Process,6,The Strategic Planning Process,Inputs to the organization Industry analysis Enterprise profile Development of alternative strategies Evaluation and choice of strategies Medium- and short-range planning Implementation through reengineering, staffing, leadership, and control Consistency testing and contingency planning;,7,2-1 Inputs to the organization,People; Capital; Management skills; Technical skills; ,Goals of stakeholders; Employees; Consumers; Suppliers; Stockholders; Governments; Community;,8,2-2 Industry analysis ,Competition within an industry; The possibility of new firms; The availability of substitute; The bargaining positions of suppliers; The bargaining positions of buyers,9,2-3 Enterprise profile,Missions or purpose; Orientation, values, and visions of executives; Strategic intent;,10,External environment,Economic factors; Social factors; Political factors; Legal factors; Demographic factors; Technological factors; Ecological factors;,11,Internal environment,We should analyze the strengths and weaknesses of each department;,Human resources; Financial resources; The company image; Organization structure; Organization climate; Planning and control system; Public relations;,12,2-4 Develop alternatives,Specialization or concentration; Diversification; International expansion; Liquidation strategy; Retrenchment strategy;,13,Case study- Alternatives of TunHe,To establish subsidiaries; to form joint ventures with famous company in soft drink To acquire a listed company and control its management and operation?,14,2-5 Evaluation and choice of strategy,Risks; Timing; The reaction of competitors;,15,2-6/7 Implementation of strategy,Strategy should be translated into middle-term or short-term plans.,Reengineering the organization, staffing, and providing leadership is required in implementation of the strategy;,16,3. the TOWS Matrix ,What is the relationship between the SWOT Matrix and the TOWS Matrix? What is the major function of the TOWS Matrix? What does TOWS stand for? How many alternative strategies according to the TOWS Matrix ? Elaborate each alternative strategy and illustrate,17,Definition of the TOWS Matrix,The TOWS Matrix is a conceptual framework for a systematic analysis The TOWS facilitates matching the external threats and opportunities with the internal weaknesses and strengths of the organization.,18,TOWS Matrix,19,4 Alternative Strategies ,SO strategy: MaxiMaxi WO strategy: MiniMaxi ST strategy: MaxiMini WT strategy: MiniMini,20,烟台啤酒2003年,21,The body shop,22,4. Business Portfolio Matrix ,23,Business Portfolio Matrix,Two dimensions; Four quadrants; How can we deal with different business? How about the cash flow in each quadrant; What is the application of the matrix? Comments on the matrix,24,Business Portfolio Matrix,Two dimensions Relative competitive position (market share) Business growth rate,Four positions Question marks Stars Cash cows Dogs,25,5. Hierarchy of Company Strategies,The corporate-level strategy. Executives craft the overall strategy for a diversified company. Business strategies are developed usually by the general manager of a business unit. Functional strategies. The aim is to support the business and corporate strategies.,26,6. Five Forces in Industry Analysis,The competition among companies The threat of new companies entering the market The possibility of using substitute products or services The bargaining power of suppliers The bargaining power of the buyers or customers,27,7. Porters Generic Strategies ,Overall Cost Leadership Strategy Differentiation Strategy Focused Strategy (low cost or differentiation),28,How can we make overall cost leadership strategy,Transfer plants from higher labor cost countries to lower labor cost countries To simplify the package To simplify the functions of products Sacrifice the quality of products or services To reduce the marketing expenses To look for raw materials with low price To utilize the latest technologies To expand the production scale,29,8.Delphi Technique ,The background of Delphi