Strategic-Management.pptx

Strategic Management: Fred R. David Prentice Hall WL by Warlon Lamsen Chapter Outline The Nature of Strategy Analysis and Choice A Comprehensive Strategy-Formulation Framework The Input Stage Chapter Outline The Matching Stage The Matching Stage The Decision Stage The Decision Stage Cu...

Strategic Management: Fred R. David Prentice Hall WL by Warlon Lamsen Chapter Outline The Nature of Strategy Analysis and Choice A Comprehensive Strategy-Formulation Framework The Input Stage Chapter Outline The Matching Stage The Matching Stage The Decision Stage The Decision Stage Cultural Aspects of Strategy Choice Cultural Aspects of Strategy Choice Chapter Outline Part 3 The Politics of Strategy Choice The Role of a Board of Directors The Politics of Strategy Choice is a critical The Board of Directors plays a crucial role in aspect of strategic management. It involves the strategic management process. They are understanding the power dynamics within an responsible for overseeing the company's organization and how these dynamics overall direction and ensuring that influence the selection of strategies. This management is acting in the best interests of section explores the various political factors the shareholders. This section examines the that can impact strategy choice, including the responsibilities of the board in relation to influence of different stakeholders, the role of strategy, including their role in setting coalitions, and the impact of organizational strategic direction, monitoring management culture. performance, and approving major strategic decisions. Quote on Improvement Strategy Analysis & Choice Fred R. David Prentice Hall Whether it’s broke or not, fix it—make it better. Not just products, but the whole company if necessary. \-- Bill Saporito Subjective Decisions in Strategy Fred R. David Prentice Hall Strategic analysis and choice largely involves making subjective decisions based on objective information. The Nature of Strategy Analysis and Choice 1 1. Establishing Long-Term Objectives Establishing long-term objectives is the first step in strategy analysis and choice. This involves defining the desired future state of the organization and setting clear goals that guide strategic decision-making. 2 2. Generating Alternative Strategies Once objectives are established, the next step is to generate alternative strategies that could help achieve those objectives. This involves brainstorming and exploring various options, considering different approaches and perspectives. 3 3. Selecting Strategies to Pursue After generating alternative strategies, the next step is to select the most promising ones to pursue. This involves evaluating each strategy based on its feasibility, effectiveness, and potential impact on the organization. 4 4. Best Alternative to Achieve Mission and Objectives The final step in strategy analysis and choice is to select the best alternative strategy that aligns with the organization's mission and objectives. This involves considering the overall strategic fit and the potential for success in the long term. Sources of Alternative Strategies Vision Mission Objectives External Audit Alternative strategies Vision Mission Objectives derive from – Internal Audit Past Successful Strategies External audit Internal audit Broad Participation in Strategy Participation in generating alternative strategies should be broad – Strategy-Formulation Framework 1 Stage 1: The Input Stage 2 Stage 2: The Matching Stage 3 Stage 3: The Decision Stage Fred R. David Prentice Hall