西交大MBA战略管理讲义1.ppt

STRATEGIC MANAGEMENT:Concepts and Casesfor MBA Class 131-132Zhang YongXi’an Jiaotong University1Main Issues to be Covered:•Strategic management--concept•environment analysis--external and internal•strategies at different levels•strategy formulation•strategy implementation•strategy evaluation•cases2Chapter 1•Strategic Management and introductory remarks3Chapter Outline•Five Tasks of Strategic Management–Developing a Strategic Vision and Mission–Setting Objectives–Crafting a Strategy–Implementing the Strategy–Evaluating Performance and Initiating Corrective Adjustments•Why Strategic Management Is a Process•Who Performs the Tasks of Strategy?•Benefits of “Managing Strategically”•Terms to Remember4Thinking Strategically:The Three Big Strategic Questions1. Where are we now -- what is our situation?2. Where do we want to go?–Business(es) we want to be in and market positions we want to stake out–Buyer needs and groups we want to serve–Outcomes we want to achieve3. How will we get there?5What Is Strategy?•Competitive moves and business approaches management employs in running a company•Management’s “game plan” to–Please customers –Position a company in its chosen market–Compete successfully–Achieve good business performance6Craft aStrategyto AchieveObjectivesSetObjectivesDevelop aStrategicVision& MissionImplement& ExecuteStrategyEvaluate & Make CorrectionsImprove/ChangeRevise asNeededRevise asNeededImprove/ChangeRecycleas NeededTask 1Task 2Task 3Task 4Task 5The Five Tasksof Strategic Management7Developing a Vision and Mission•Begins with thinking strategically about–The firm’s future business makeup –Where to take the firm •The task is to–Create a roadmap of a company’s future–Decide what future business position to stake out–Provide long-term direction–Give the firm a strong identity8Missions vs. Strategic Visions•A mission statement focuses on current (and permanent) business activities–Business(es) company is in now–Customer needs currently being served•A strategic vision concerns a firm’s future business path –The kind of company it is trying to become–Customer needs to be satisfied in the future 9Sample Mission StatementSouthwest Airlines:The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. 10Setting Objectives•Establishing OBJECTIVES–Converts vision into specific performance targets–Creates yardsticks to track performance–Pushes firm to be inventive and focused–Helps prevent coasting and complacency(self-satisfied and not aggressive) if targets require stretchThe Second Task of Strategic Management11Types of Objectives RequiredOutcomes focused on improving a firm’s financial performanceOutcomes focused on improving a firm’s competitiveness and its long-term business positionFinancial Objectives Strategic Objectives$12Examples: Financial Objectives•Grow earnings per share 15% annually•Boost annual return on investment from 15% to 20%•Increase annual dividends per share to stockholders by 5% each year•Strive for stock price appreciation equal to or above the 500 average•Maintain a positive cash flow•Achieve and maintain a AA bond rating13Examples: Strategic Objectives•Increase firm’s market share •Overtake key rivals on quality or customer service or product performance•Attain lower overall costs than rivals•Boost firm’s reputation with customers•Attain stronger foothold in international markets•Achieve technological superiority•Become leader in new product introductions•Capture attractive growth opportunities14Crafting a Strategy•Strategy involves determining whether to–Concentrate on a single business or several businesses (diversification)–Cater to a broad range of customers or focus on a particular niche–Develop a wide or narrow product line–Pursue a competitive advantage based on•Low cost or•Product superiority or•Unique organizational capabilitiesThe Third Task of Strategic Management15•Involves deciding how to–Respond to changing buyer preferences–Outcompete rivals–Respond to new market conditions–Grow the business over the long-term–Achieve performance targetsOur strategy will be . . . Crafting a Strategy16Strategy Is Both Planned and Reactive to Changing CircumstancesActualStrategyPlanned (or Intended)StrategyAdaptiveReactions17The Hows ThatDefine a Firm's Strategy •How to grow the business•How to please customers•How to outcompete rivals•How to respond to changing market conditions•How to manage each functional piece of the business and develop needed organizational capabilities•How to achieve strategic and financial objectivesStrategy is HOW to . . .18Understanding Company Strategy -- What to Look ForPatternof ActionsThat DefineStrategyActions to Strengthen Resources & CapabilitiesDiversificationResponses toChanging ConditionsOffensive Moves to Gain EdgeChanges in Product Line,Quality, or ServiceGeographicCoverageForward orBackward Integration, CollaborationHow Functional Activities Are ManagedDefensive MovesPursuing New Opportunities19Strategy Example: McDonald’s•Strategic priorities–Continued growth–Providing exceptional customer care–Remaining an efficient and quality producer–Offering high value and tasting products–Effectively marketing McDonald’s brand on a global scale20Core Elements ofMcDonald’s Strategy•Add 2500 restaurants annually•Promote frequent customer visits via attractive menu items, low-price specials, and Extra Value Meals•Be highly selective in granting franchises•Locate on sites offering convenience to customers and profitable growth potential•Focus on limited menu and consistent quality•Careful attention to store efficiency•Extensive advertising and use of Mc prefix•Hire courteous (polite) personnel; pay an equitable wage; provide good training21Crafting Strategy Is anExercise in Entrepreneurship•Strategy-making is a market-driven and customer-driven activity that involves–Risk-taking and venturesomeness–Innovation and business creativity–Keen eye for spotting market opportunities–Keen observation of customer needs–Choosing among alternatives22Characteristics ofEntrepreneurial Managers•Boldly pursue new strategic opportunities•Emphasize out-innovating the competition•Lead the way to improve firm performance•Willing to be a first-mover and take risks•Respond quickly and opportunistically to new developments•Devise leading strategies23Why Do Strategies Evolve?•There is always an ongoing need to react to–Shifting market conditions–Fresh moves of competitors–New technologies–Evolving customer preferences–Political and regulatory changes–New windows of opportunity–The crisis of the moment24What Is a Strategic Plan?Where firm is headed -- Strategic vision and business missionAction approaches to achieve targeted results -- A comprehensive strategy Short and long term performance targets --Strategic and financial objectives25Implementing Strategy•Creating fits between way things are done and what it takes for effective strategy execution•Getting the organization to execute strategy proficiently and efficiently•Producing excellent results in a timely mannerThe Fourth Task of Strategic Management26Strategy implementation is aninternal, operations-driven activityinvolving organizing, budgeting,motivating, culture-building,supervising, and leading to “make the strategy work”as intended!Strategy Implementation27What Does StrategyImplementation Include?•Building a capable organization•Allocating resources to strategy-critical activities•Establishing strategy-supportive policies•Motivating people to pursue objectives•Tying rewards to achievement of results•Creating a strategy-supportive corporate culture•Installing needed information, communication, and operating systems•Instituting best practices for continuous improvement•Exerting strategic leadership 28Evaluating Performance•The tasks of strategy are not a one-time only exercise–Times and conditions change–Events unfold–Better ways to do things emerge–New managers with different ideas take over The Fifth Task of Strategic Management29Evaluating Performance•Corrective adjustments–Alter long-term direction–Redefine the business–Raise or lower performance objectives–Modify the strategy–Improve strategy execution30Characteristics of the Strategic Management Process•Need to perform tasks never goes away•Boundaries among tasks are blurry•Strategizing is not isolated from other managerial activities•Time required comes in lumps and spurts•The big challenge is to get the best strategy-supportive performance from employees, perfect current strategy, and improve strategy execution31Craft aStrategyto AchieveObjectivesSetObjectivesDevelop aStrategicVision& MissionImplement& ExecuteStrategyEvaluate & Make CorrectionsImprove/ChangeRevise asNeededRevise asNeededImprove/ChangeRecycleas NeededTask 1Task 2Task 3Task 4Task 5The Five Tasksof Strategic Management32Strategy Is Both Planned and Reactive to Changing CircumstancesActualStrategyPlanned (or Intended)StrategyAdaptiveReactions33Understanding Company Strategy -- What to Look ForPatternof ActionsThat DefineStrategyActions to Strengthen Resources & CapabilitiesDiversificationResponses toChanging ConditionsOffensive Moves to Gain EdgeChanges in Product Line,Quality, or ServiceGeographicCoverageForward orBackward Integration, CollaborationHow Functional Activities Are ManagedDefensive MovesPursuing New Opportunities34Strategic Management PrincipleStrategy-making is a job for line managers, not a staff of planners -- doers should be the strategy-makers!35Strategic Role of aBoard of Directors•Continuously audit validity of a company’s long-term direction and strategy•Evaluate strategic leadership skills of the CEO and candidates to succeed the CEO36Strategic Management PrincipleA board of director’s role in the strategic management process is to critically appraise and ultimately approve strategic action plans, but rarely, if ever, to develop the details!37Levels of Strategy-MakingCorporate StrategyBusiness Strategies (Competitive Strategy)Functional StrategiesOperating StrategiesTwo-Way InfluenceTwo-Way InfluenceTwo-Way InfluenceCorporate-Level ManagersBusiness-Level ManagersOperatingManagersFunctional Managers38Main issues of Corporate Strategy•Moves to achieve diversification•Actions to boost performance of individual businesses•Capturing synergy among business units 2 + 2 = 5 effects!•Establishing investment priorities and steering corporate resources into the most attractive business units39Main Issues of Business Strategy•Forming responses to changes in industry and competitive conditions, buyer needs and preferences, economy, regulations, etc.•Crafting competitive moves leading to sustainable competitive advantage•Building competitively valuable competencies and capabilitiesCOMPETITIVE STRATEGY•Uniting strategic initiatives of functional areas•Addressing strategic issues facing the company40Functional Strategies•Game plan for a strategically-relevant function, activity, or business process•Details how key activities will be managed•Provide support for business strategy•Specify how functional objectives are to be achieved41Operating Strategies•Concern narrower strategies for managing grassroots activities and strategically-relevant operating units•Add detail to business and functional strategies but of lesser scope42Strategic Management PrincipleTo be a real winner, a strategy must(1) Fit the enterprise’s situation (2) Build sustainable competitive advantage (3) Improve company performance 43Factors Shaping theChoice of Company StrategyCompetitiveConditions & IndustryAttractivenessSocietal, Political,RegulatoryFactorsCompanyOpportunities&ThreatsCompany’s Strategic SituationInfluencesof KeyExecutivesResourceStrengths&WeaknessesShared Values&CultureDetermineRelevanceof Internal& External FactorsIdentify &Evaluate Alterna-tivesCrafttheStrategyExternal FactorsInternal Factors44Recap of Important TermsA view of an organization’s future direction and business course; a guiding concept for what the organization is trying to do and to become.Represents management’s customized answer to the question “what is our business and what will it be.” A mission statement broadly outlines the organization’s future direction and serves as a guiding concept for what the organization is to do and to become.Strategic VisionOrganization Mission45Recap of Important TermsOrganization’s targets for achievement; both short and long range objectives are needed.Financial performance targets a company wants to achieve.Targets relating to strengthening a company’s overall market position and competitive viability.Performance ObjectivesFinancial ObjectivesStrategic Objectives46Recap of Important TermsAchievement levels to be reached within the next three to five years.Near-term performance targets; they establish the pace for achieving the long-range objectives.Long-Range ObjectivesShort-Range Objectives47Recap of Important TermsManagerial action plan for achieving organizational objectives; strategy is mirrored in the pattern of moves and approaches devised by management to produce the desired performance. Strategy is the how of pursuing an organization’s mission and reaching target objectives.Statement outlining an organization’s mission and future direction, near-term and long-term performance targets, and strategy, in light of organization’s external and internal situation.StrategyStrategic Plan48Recap of Important TermsIncludes the full range of managerial activities associated with putting the chosen strategy into place, supervising its pursuit, and achieving the targeted results.Strategy Implementation49。