Strategic Management Concepts PDF

Strategic Management Concepts: A Competitive Advantage Approach, Concepts and Cases Seventeenth Edition Chapter 1 The Nature of Strategic Management...

Strategic Management Concepts: A Competitive Advantage Approach, Concepts and Cases Seventeenth Edition Chapter 1 The Nature of Strategic Management Ufuture password: ZGMF-X20A Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Learning Objectives (1 of 2) 1.1 Describe the strategic-management process. 1.2 Discuss the three stages of strategy formulation, implementation, and evaluation activities. 1.3 Explain the need for integrating analysis and intuition in strategic management. 1.4 Define and give examples of key terms in strategic management. Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Learning Objectives (2 of 2) 1.5 Describe the benefits of engaging in strategic management. 1.6 Explain why some firms do not engage in strategic planning. 1.7 Describe the pitfalls in doing strategic planning. 1.8 Discuss the connection between business and military strategy. 1.9 Explain how this course can enhance a student’s employability. Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Defining Strategic Management (1 of 3) ementing visionth Strategic Management set Stage n a judgement. D , unched e intration , -creativity It tryberror , systematic , -planning , The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an4 work together with other departments. organization to achieve its objectives ? Group debate : can purpose to the company you the best strategy are What Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Defining Strategic Management (2 of 3) Strategic management is used synonymously with the term strategic planning in this course. Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation. Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Defining Strategic Management (3 of 3) A strategic plan is a company’s game plan. A strategic plan results from tough managerial choices among numerous good alternatives, and it signals commitment to specific markets, policies, procedures, and operations. resources to limited due decision make best to very tough Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Figure 1.1 The Strategic Management Model Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 1 (February 1989): 91. See also Anik Ratnaningsih, Nadjadji Anwar, Patdono Suwignjo, and Putu Artama Wiguna, “Balance Scorecard of David’s Strategic Modeling at Industrial Business for National Construction Contractor of Indonesia,” Journal of Mathematics and Technology, no. 4 (October 2010): 20. Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  final masak A perman The Strategic-Management Model Where are we now? Where do we want to go? How are we going to get there? ? question describe 3 important Please Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Stages of Strategic Management (1 of 4) 3 Process : Strategy formulation Strategy implementation Strategy evaluation Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Stages of Strategic Management (2 of 4) Strategy Formulation I. pended layat Sahaja ! Ich lebih 190 words pusually Xpanjang – developing a vision and mission * – identifying an organization’s external opportunities and threats internators – determining internal strengths and weaknesses SW Analysis - external factors controls human more than 1 year beyond - "environmental – establishing long-term objectives with strategy bary boleh came up ex : then > - – generating alternative strategies – choosing particular strategies to pursue -e s strategies the time t at. Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Strategy Formulation Decisions What new businesses to enter What businesses to abandon Whether to expand operations or diversify Whether to enter international markets Whether to merge or form a joint venture How to avoid a hostile takeover as t downingtion Semaa aget, terpala jual + cair of workers etc cost by reducing no retrenchment save + development product Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Stages of Strategic Management (3 of 4) Strategy Implementation yearly – requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources S guidelines/procedures so that formulated strategies can be executed – often called the action stage decisions > - routine > decisions - Finance non routine ex :filir objektif Top Manager Middle manager manage line First formulation Top + Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Stages of Strategic Management (4 of 4) Strategy Evaluation – Determining which strategies are not working well – Three fundamental activities:  reviewing external and internal factors that are the bases for current strategies with actual results expected output  measuring performance - by comparing  taking corrective actions Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Key Terms in Strategic Management (1 of 6) Competitive Advantage & – any activity a firm does especially well compared to activities done by rival firms, or ② – any resource a firm possesses that rival firms desire. 4 talented people A firm must strive to achieve sustained competitive remain term advantage advantage in long Competitive : advantage Company competitive career goals skills Training Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Key Terms in Strategic Management (2 of 6) formulate top & best strategy Top management Strategists Representative – Individuals most responsible for the success or failure of an organization – Help an organization gather, analyze, and organize information masak test A pernah MCQ of statement Vision and Mission Statements statement True vision – A vision statement answers the question “What do we want to become?” – A mission statement answers the question “What is our business?” Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Key Terms in Strategic Management ada chapter knas ! analysis (3 of 6) SWOT External Opportunities and Threats – economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization Internal Strengths and Internal Weaknesses – an organization’s controllable activities that are performed especially well or poorly – determined relative to competitors - Revenue lost- Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Some Opportunities and Threats Consumers' expectation for green operations and products is rising 8 percent annually in Western Europe. Internet marketing is growing 11 percent annually in the United States. Commodity food prices rose 6 percent the prior year. Oil and gas prices declined 18 percent in the last twelve months. Computer hacker problems are increasing 14 percent annually. threat - Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved clip 2 Key Terms in Strategic Management (4 of 6) Long-Term Objectives – specific results that an organization seeks to achieve in pursuing its basic mission – long-term means more than one year alan Lasa bosandtukar tempat kerja career growth/challeging + no – should be challenging, measurable, consistent, ↓ reasonable, and clear amount Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Key Terms in Strategic Management (5 of 6) adall YKerikkam jadinada > - objectives to approach suggestion Strategies – the means by which long-term objectives will be product achieved -> other technology > technology related product - mother – may include geographic expansion, diversification, create new product tempat barn -> new cust supplie acquisition, product development, market penetration, - X retrenchment, divestiture, liquidation, and joint ventures Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Figure 1.2 The Basic SWOT Matrix Format JoNot Analysis So not Ma Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Key Terms in Strategic Management (6 of 6) Annual objectives peudek objective – short-term milestones that organizations must achieve to reach long-term objectives – should be measurable, quantitative, challenging, realistic, consistent, and prioritized – should be established at the corporate, divisional, and functional levels in a large organization objective Policies annual kena ada untuls support > - – the means by which annual objectives will be achieved Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Benefits of Strategic Management Strategic management allows an organization to be more proactive than reactive in shaping its own future; Yeah identify & predict? ↳ dan kena bar reacte less loss suffer suffer higher It allows an organization to initiate and influence (rather than just respond to) activities-and thus to exert control over its own destiny. Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Figure 1.3 Benefits to a Firm That Does Strategic Planning staff betweenemselves A Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Financial Benefits Organizations using strategic-management concepts show significant improvement in sales, profitability, and productivity compared to firms without systematic planning activities High-performing firms tend to do systematic planning to prepare for future fluctuations in their external and internal environments Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Nonfinancial Benefits Enhanced awareness of external threats Improved understanding of competitors’ strategies exe career growth - positive Increased employee productivity Reduced resistance to change reward system a byhaving perform t for best -notivate Clearer understanding of performance-reward relationships Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Why Some Firms Do No Strategic Planning (1 of 2) No formal training in strategic management No understanding of or appreciation for the benefits of planning No monetary rewards for doing planning No punishment for not planning Too busy “firefighting” (resolving internal crises) to plan ahead View planning as a waste of time, since no product/service is made Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  top glove organisation Why Some Firms Do No Strategic Labour Planning (2 of 2) Dia rasa company in 10 years th dan berjaya so as if no need to change plan. Laziness; effective planning takes time and effort; time is money Content with current success; failure to realize that success today is no guarantee for success tomorrow Overconfidence Prior bad experience with strategic planning done sometime/somewhere Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  tak berjaya buat tapi +dah -jatuh Pitfalls in Strategic Planning (1 of 2) Using strategic planning to gain control over decisions and resources Doing strategic planning only to satisfy accreditation or regulatory requirements Too hastily moving from mission development to strategy formulation Not communicating the plan to employees, who continue working in the dark Top managers making many intuitive decisions that conflict with the formal plan Top managers not actively supporting the strategic-planning process Not using plans as a standard for measuring performance kepada Leseorang Ketua bertanggungjawa empower + memberi authority kuasalkepercayaan Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  tan talnt. malds a gagal Resist to change + Pitfalls in Strategic Planning (2 of 2) Delegating planning to a “planner” rather than involving all managers Not involving key employees in all phases of planning Not creating a collaborative climate supportive of change Viewing planning as unnecessary or unimportant Viewing planning activities as silos comprised of independent parts Becoming so engrossed in current problems that insufficient or no planning is done Being so formal in planning that flexibility and creativity are stifled Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved  Comparing Business and Military Strategy A fundamental difference between military and business strategy is that business strategy is formulated, implemented, and evaluated with an assumption of competition, whereas military strategy is based on an assumption of conflict Both business and military organizations must adapt to change and constantly improve to be successful know yourself know your enemy be applied into business. can Y War - principles Art of Sun Tsu ZusWar- business war - competitors - enemy - competition resolve conflict or ruin - power , - survival ↓ life or - matter of death - tactic kotor transparent + deception Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Excerpts from Sun Tzu’s The Art of War Writings Strategic planning is a matter of vital importance to the state: a matter of life or death, the road either to survival or ruin. Hence, it is imperative that it be studied thoroughly Know your enemy and know yourself, and in a hundred battles you will never be defeated Skillful leaders do not let a strategy inhibit creative counter- movement Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Examples of Employability Skills From Using Text Critical thinking Collaboration Knowledge application and analysis Business ethics and social responsibility Information technology Data literacy Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Figure 1.4 How to Gain and Sustain Competitive Advantage Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved Copyright Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved