Module 02 - Strategy (1) - Engineering Management

engiman

1. Strategy
•Asetofactionsthatmanagerstaketoincreasetheircompany’sperformance
relativetoindustryrivals.
tocreateacompetitiveadvantageoverother•Astrategyisimplemented
companies
•Acompanyissaidtohaveacompetitiveadvantagewhenitsprofitabilityis
greaterthantheaverageprofitabilityforallfirmsintheindustry
•Acompetitiveadvantageisconsideredsustainedwhenitismaintainedfor
severalyears
•The essence ofstrategyliesincreatingtomorrow’scompetitive advantagefaster
thancompetitorsmimictheonesyoupossesstoday.

2. Strategy
Stakeholders
•
Individualsorgroupswithaninterest,claim,orstakeinthecompanyand
howwell itperforms
•
Anyoneinanexchangerelationshipwiththecompany
CorporateGovernance:
•Mechanismstomonitormanagersmakingsuretheypursuestrategiesinthe
interestofStakeholders

3. Strategy
InternalStakeholders
•
Stockholders
•Employees
•Executivesandmanagers
•Boardmembers
ExternalStakeholders
•
Customersand suppliers
•Creditors
•Governments
•Generalpublic

4. Strategy
TheMissionStatement
•
Toestablishtheguidingprinciplesforstrategic decisionmaking
•Includes4mainelements:

TheMission

TheVision

Values

GoaloftheCorporation
•Themissionstatementisakeyindicatorofhowanorganizationviewsthe
claims ofstakehold
ers