Benefits of Strategic Business Management.pptx

benefits of strategic management for business

1. Benefits of “Strategic Thinking”

2. The Five Tasks of Strategic Management Formulate Strategy to Achieve Goals & Objectives Set Goals & Objectives Develop Vision and Mission Implement and Execute Strategy Improve/ Change Revise as Needed Revise as Needed Improve/ Change Recycle as Needed Task 1 Task 2 Task 3 Task 4 Task 5 Monitor, Evaluate, and Take Corrective Action

3. Who Performs the Five Tasks?

4. Why is a Strategic Vision Important? A managerial imperative exists to look beyond today and think strategically about Impact of new technologies How customer needs and expectations are changing What it will take to outrun competitors Which promising market opportunities ought to be aggressively pursued External and internal factors driving what a company needs to do to prepare for the future

5. MISSION DEFINES COMPANY’S BUSINESS Product / market 2. Territory / geography

6. VISION

7. Missions vs. Strategic Visions A mission statement focuses on current business activities -- “who we are and what we do” Current product and service offerings Customer needs being served Technological and business capabilities A strategic vision concerns a firm’s future business path -- “where we are going” Markets to be pursued Future technology-product-customer focus Kind of company that management is trying to create

8. Setting Goals & Objectives Second Task of Strategic Management

9. GOALS Broad Targets OBJECTIVES Quantified & Time-based

10. Strategic Goals

11. What is Strategy?

12. “Without a strategy the organization is like a ship without a rudder, going around in circles.”

13. Thinking Strategically: The Five Big Strategic Questions

14. The Hows That Define a Firm's Strategy

15. 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 & financial goals & objectives

16. Corporate Strategy Business Strategies Functional Strategies Operating Strategies Two-Way Influence Two-Way Influence Two-Way Influence Corporate-Level Managers Business-Level Managers Operating Managers Functional Managers Levels of Strategy-Making in a Diversified Company

17. Levels of Strategy-Making in a Single-Business Company Business Strategy Two-Way Influence Two-Way Influence Functional Strategies Operating Strategies Executive-Level Managers Operating Managers Functional Managers

18. Factors Shaping the Choice of Company Strategy Company’s Strategic Situation Craft the strategy  External Factors  Internal Factors Social, political, regulatory and community factors Competitive conditions and industry attractiveness Company opportunities and threats to company’s well-being Resource strengths, capabilities, and weaknesses Influences of key executives Shared values and company culture Identify and evaluate alternatives Determine relevance of internal and external factors

19. SWOT Analysis - What to Look For Potential Resource Strengths Potential Resource Weaknesses Potential Company Opportunities Potential External Threats Powerful strategy Strong financial condition Strong brand name image/reputation Widely recognized market leader Proprietary technology Cost advantages Strong advertising Product innovation skills Good customer service Better product quality Alliances or JVs No clear strategic direction Obsolete facilities Weak balance sheet; excess debt Higher overall costs than rivals Missing some key skills/ competencies Subpar profits Internal operating problems . . . Falling behind in R&D Too narrow product line Weak marketing skills Serving additional customer groups Expanding to new geographic areas Expanding product line Transferring skills to new products Vertical integration Take market share from rivals Acquisition of rivals Alliances or JVs to expand coverage Openings to exploit new technologies Openings to extend brand name/image Entry of potent new competitors Loss of sales to substitutes Slowing market growth Adverse shifts in exchange rates & trade policies Costly new regulations Vulnerability to business cycle Growing leverage of customers or suppliers Reduced buyer needs for product Demographic changes

20. Company’s Strategy -- What to Look For Pattern of Actions That Define Strategy Actions to strengthen resources & capabilities Actions to diversify Actions to out compete rivals Responses to changing external circumstances Actions to alter geographic coverage Actions to form strategic alliances and collaborative partnerships How functional activities are managed Efforts to pursue new opportunities or defend against threats Actions to merge or acquire rival companies