principles of management Introduction_to_Case_Analysis.pptx

introduction to case analysis

1. Strategic Management Chapter 1 and Introduction to Case Analysis Instructor Name | Name of Institution Unless otherwise noted, this slide deck is (c) Virginia Polytechnic Institute and State University. It is released under a Creative Commons Attribution NonCommercial ShareAlike 3.0 license (CC BY NC-SA 3.0) Photo by  Jon Sailer  on  Unsplash http://hdl.handle.net/10919/102735

2. Introduction to Case Analysis: Overview Session Objectives Understand the basic framework for strategy analysis, including the overall process and tools for assessing external forces and competitive advantage. Able to define what a strategic issue is. Able to distinguish between symptoms, causes and outcomes of strategic issues. Understand the process for the development and assessment of strategic alternatives. Understand the approaches, benefits & pitfalls for case discussion Understand team dynamics and how to have a highly effective team.

3. Chapter 1: What is Strategic Management? Strategic Management an ongoing process used by firms to set an organizational vision, analyze the external, competitive, and internal environments, and develop strategies for success

4. The Four Key Aspects of Strategic Management 1. Directs the organization toward overall goals and objectives – common statements of vision, mission & objectives 2. Includes multiple stakeholders in decision making 3. Needs to incorporate short-term and long-term perspectives 4. Recognizes trade-offs between efficiency and effectiveness

5. Strategy in Strategic Management A broad goal that an organization needs to achieve to be successful in the marketplace Types of Strategies Intended Emergent Realized Unrealized

6. History of Strategic Management Strategy in Ancient Times Lessons from the military Strategic Management as a Field of Study

7. Contemporary Critique of Strategic Management High investment: Cost vs. Benefit Difficult to predict the future May limit ability to respond to quick changes in the business environment Strategic tools are limited Too driven to achieve results short term

8. Strategic Management Process Mission, Vision, Values Assess firm performance, external and competitive environment, and internal firm environment Develop SWOT analysis Define strategic issue(s) Formulate strategies that Address the strategic issue(s) Take advantage of firm’s strengths & opportunities Mitigates firm’s weaknesses and threats Implement successfully the strategies

9. Summary of Strategy Framework Analyze (A) Formulate (F) Implement (I) The traditional strategic planning questions: Where are we? Analysis Where are we going? Vision How are we going to get there? Strategies

10. Our Framework Strategic Management & Business Frameworks & Tools Symptoms Phenomenon Problems (?) Key Issues Causes need to address List of Alternatives Per issue Criterion Rank alts upon Mutually excl? Recs/Options Timelines, costs Responsibilities Fallback option Must be a collaboration: Review analyses, integrate & synthesize to understanding and create meaning; Sense making Nature of the Process Can be individual

11. How do you Discuss a Case? Reducing risk – the right way Speak up early Be prepared know the key facts and situation, be ready to work from there prepare the preparation questions; think about the thought questions Have applied the tools already learned, attempted to cover those for the day Laugh, especially at our self Ask: What does it mean? Why? What’s next?

12. Strategic Issues STRATEGIC ISSUE – the primary, long-term matter facing the organization, typically long-term in nature, requires a significant commitment of organizational attention and resources to resolve, and is difficult/impossible to avoid. Is likely the result of multiple causes. What’s going on? What’s causing it? What should we do? https://thenounproject.com/search/?q=business+AND+decision&i=2272269 @b farias, CL CC BY 3.0

13. What is the Strategic Issue Facing Tesla? On January 7, 2020, Tesla Inc. became the most valuable US automaker in history. Valued at $81.39 billion, Tesla passed Ford Motor Company as most valuable. Approximately two weeks later, Tesla passed Volkswagen to become the second most valuable car company worldwide. Still well behind Toyota, which has a $233 billion market capitalization, Tesla’s growth is unprecedented in the automotive industry. Can Tesla become number one worldwide? Despite tremendous growth, Tesla has its share of problems as well. Its founder, Elon Musk, tweeted that the company’s stock price was too high; sending the stock tumbling, the Model 3 lost Consumer Reports recommendations, and COVID-19 shutdowns of factories slowed production. These problems raise serious questions. Will Elon’s Twitter use continue to cause problems? Are the quality problems going to tank Tesla’s growth? Can Tesla emerge from the COVID-19 shutdown successfully? The company faces stiff competition from automakers attempting to regain their footholds in a highly aggressive market. Competitors are attempting to compete in the same areas as Tesla. Porsche’s Taycan, a Tesla competitor, got a huge win with a purchase from Bill Gates. As competitors continue to develop autonomous capabilities and better electric batteries, will Tesla continue to dominate US auto markets? NOTE: we cannot really determine the strategic issue(s) until we do the ANALYSIS!!!

14. Strategic Alternatives Resolve the strategic issue, all resolve the same issue, just in different ways Address root causes – they do not address or mask symptoms Are forward looking – don’t fix yesterdays problem They are realistic – practically, ethically & economically viable They can be implemented by the firm Must be well developed and explained Must be evaluated based on the key points identified in your analysis Are almost always strategic, not tactical (no coupons, sponsoring the local soccer team, etc.) Career Point – the ability to develop solutions that create value to the organization will make you a star.

15. Strategic Recommendation Is a grey-area decision – all alternatives have advantages and drawbacks, selecting which is best is business judgment (that said, some are clearly bad choices). Should be selected based on multiple criteria – strategic, financial, technical, resource, implementability, etc. We’ll cover more on this. You must be fully committed to the recommendation – it will likely be your responsibility to make it happen.

16. Criteria to Evaluate Alternatives Does it fix the causes of the issue? Add value and be able to earn a profit Add value increase price? Add value without increasing cost? Improve profitability? Create a competitive advantage? Feasible given constraints?

17. Alternatives Exercise What is the strategic issue facing Netflix? What are three alternatives (i.e., new actions / initiatives) that the firm might consider to resolve this strategic issue? Which would you recommend? Criteria Alt # 1 Alt #2 Alt #3 TOTAL

18. Recommendation? Implementation? Tasks? Resources/Costs? Timeline? Outcomes?

19. Groups for Next Class In the next class, your team will analyze the financial statements of one of 3 companies, based on your last name. Examine the company’s financial statements, calculate ratios and see how they compare to the industry. (Posted on Canvas). Be prepared to discuss your company in the next class. Full details are in the Day 03 Introduction to Strategic Analysis: Overview Focus Questions And 5 minute in-class QUIZ on Chapter 2

20. Team Dynamics What makes a high-performance team?