Business Policy Lectures

8/20/2019 Business Policy Lectures

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Prentice Hall, Inc. © 2006 1-1

STRATEGIC MANAGEMENT & BUSINESS POLICY

11 TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 1

Basic Conceps

o! S"ae#icMana#e$en


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Basic Conceps o! S"ae#ic Mana#e$en

Strategic Management

Set of managerial decisions and actionsthat determines the long-run performanceof a firm.


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% P&ases in &e E'o()ion o! S"ae#icMana#e$en

1. Basic financial planning – internal focus onbudgeting 1 !r "ori#on$

2. %orecast-based planning – e&trapolate t"e current

situation into t"e future 3-' !r "ori#on$3. (&ternall!-oriented planning – planning depart)ent

and*or consultants de+elop a top-don strateg! it"no loer le+el in+ol+e)ent.

. trategic )anage)ent – in+ol+es +ariousdepart)ents and le+els across t"e organi#ation. /nongoing process t"at includes i)ple)entation,e+aluation and control issues.


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Hi#&(* Rae+ Bene!is

learer sense of strategic +ision

"arper focus on strategic i)portance

I)pro+ed understanding of c"angingen+iron)ent


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No A(,a*s a -o"$a( P"ocess

"ere is t"e organi#ation no not"ere do e "ope it is$

If no c"anges are )ade, "ere ill t"eorgani#ation be in 1, 2, ' or 10 !ears

"at specific actions s"ould

)anage)ent underta4e "at are t"e ris4s and pa!offs


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Mos Pop)(a" Mana#e$en Too(s

2003 ur+e!

trategic Planning – 57

8ission*9ision tate)ents – 57


:eal 9alue

trategic ;"in4ing


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G(oa(i/aionIne"naiona(i/aion o! $a"0es an+ co"po"aions

G(oa( ,o"(+,i+e2 $a"0es "a&e" &an naiona($a"0es

E(ec"onic Co$$e"ceUse o! &e Ine"ne o con+)c )siness"ansacions

Basis !o" co$peiion on a $o"e s"ae#ic (e'e( "a&e"&an "a+iiona( !oc)s on p"o+)c !ea)"es an+ coss


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Re#iona( T"a+e O"#ani/aions

(uropean ?nion (?$ – 2' )e)ber nations pro)ote

607 local content to a+oid tariffs

@ort" /)erican %ree ;rade /gree)ent @/%;/$ –

anada, 8e&ico and ? 62.'7 local content.

8ercosur*8ercosul – out" /)erican eAui+alent of

@/%;/

entral /)erican %ree ;rade /gree)ent /%;/$ – dut!

free te&tiles, consu)er goods and far) e&ports.

/ssociation of out" (astern /sian @ations /(/@$ –

less poerful due to due to "ine, apan and Corea

e&clusion.



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E(ec"onic Co$$e"ce 33 T"en+s

-o"cin# co$pan* "ans!o"$aion 4 netor4ing of suppliers, custo)ers and partners

Ma"0e access 5 "an+in# c&an#in# 4 disinter)ediation of traditional distribution c"annels

Ba(ance o! po,e" s&i! o cons)$e" 4 access to )an! options and co)parati+e s"opping

Co$peiion c&an#in# 4 due to lo barriers to entr!


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E(ec"onic Co$$e"ce 33 T"en+s

Pace o! )siness inc"easin# 4

dog !ears D Internet !ears

Ine"ne p)s&in# co$panies e*on+"a+iiona( o)n+a"ies 4

suppl! c"ain )anage)ent and +irtual

co)panies 6no,(e+#e 0e* asse 4

source of co)petiti+e ad+antage


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Population (colog! +s. Institutional ;"eor!

anEt "ange$ 8i)ic successful organi#ations$

trategic "oice Perspecti+e

8anage)ent decisions "a+e atleast as )uc" i)pact as industr! factors$


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7S)saina(e Co$peii'e A+'ana#e +oesn8(ie in +o##e+(* !o((o,in# a cen"a((* $ana#e+

9 *ea" s"ae#ic p(an ) in s"in#in# o#e&e"

a se"ies o! s"ae#ic s&o" e"$ &")ss:

:ic"ard FE/+enti – H!perco)petition



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Lea"nin# O"#ani/aion

is s4illed at creating, acAuiring and transferring 4noledgeand )odif!ing its be"a+ior to reflect ne 4noledge and

insig"t.

Ce! /cti+itiesG – ol+e proble)s s!ste)aticall!

– (&peri)ent it" ne approac"es

– =earn fro) e&perience – ;ransfer 4noledge t"roug"out t"e organi#ation



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O"#ani/aiona( 6no,(e+#e – ;ec"nical 4ills – researc"

– %unctional 4ills – )anufacturing and )ar4eting

– 8anagerial (&pertise – plan, organi#e, influence and

control



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Basic (le)ents of t"e trategic8anage)ent Process

B i C ! S i M


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En'i"on$ena( Scannin#

Monitoring, evaluation, and disseminatinginformation from external and internalenvironments –to key people in the firm

E i ( S i


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En'i"on$ena( Scannin#

SWOT Ana(*sis

trengt"s – ea4nesses


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S"ae#* -o"$)(aion

Development of long-range plans for

effective management of opportunitiesand threats in light of corporatestrengths and weaknesses

S - ( i


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S"ae#* -o"$)(aion

Mission Sae$en

Purpose*reason for organi#ation

Pro)otes s"ared e&pectations

o))unicates public i)age

"o e are "at e do "at e

aspire to

G ( 5 O; i


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Goa(s 5 O;eci'es

Co"po"ae Goa(s


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Goa(s 5 O;eci'es

Co"po"ae Goa(s


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Hie"a"c&* o! S"ae#*

Co"po"ae s"ae#* 4 #ene"a( +i"ecion

sai(i*= #"o,&= "e"enc&$en2

B)siness s"ae#* 4 in+)s"* o" $a"0e se#$en!oc)s

co$peii'e 's. coope"ai'e2

-)nciona( s"ae#* 4 !)nciona( p(annin# os)ppo" &e Co"po"ae an+ B)siness s"ae#*.

ec&no(o#* (ea+e" o" !o((o,e"2



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S"ae#* I$p(e$enaion

Process y which strategies and policies are

put into action through development of

programs and procedures




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S"ae#* I$p(e$enaion

P"o#"a$s 4 sin#(e )se p(ans p"o;ecs2

B)+#es 4 coss associae+ ,i& a p"o#"a$

P"oce+)"es 4 s*se$ o! se?)enia( seps &a

+esc"ie &o, a pa"ic)(a" as0 o" ;o is o e

+one




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(+aluation and ontrol

Process y which corporate activities and

performance results are monitored so that

actual performance can e compared with

desired performance.




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Punctuated (Auilibriu)

!orporations usually take "# – $% years

efore making a significant change in

strategy orientation




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T"i##e"in# E'en @e (<

(&ternal Inter+ention

;"reat of c"ange in oners"ip

Perfor)ance ap

trategic inflection point industr!$


S"ae#ic Decision Ma0in#


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S"ae#ic Decisions

Ra"e 4 )n)s)a(= no p"ece+en

Conse?)enia( 4 co$$i s)sania( "eso)"ces

Di"eci'e 4 se p"ece+ens !o" +ecision $a0in#



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Min/e"#8s Mo+es

En"ep"ene)"ia( $o+e 4 !o)n+e"s 'ision

A+api'e $o+e 4 7$)++(in# &"o)#&: "eaci'e2P(annin# $o+e 4 s*se$aic #a&e"in# an+

ana(*sis o! in!o"$aion

Lo#ica( inc"e$ena(is$ 4 ine"aci'e s"ae#*+e'e(op$en P(annin# @ A+api'e2



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trategic

Fecision-8a4ing

Process

Ha$"ic0 an+ -"e+"ic0son 4 Goo+ S"ae#*


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Ha$"ic0 an+ -"e+"ic0son 4 Goo+ S"ae#*

9 E(e$ens o! Goo+ S"ae#*

1. A"enas 4 W&e"e

. Ve&ic(es 4 Ho, o #e &e"e

. Di!!e"eniao"s 4 Ho, o ,in

%. Sa#in# 4 Spee+ an+ se?)ence 3 acics

9. Econo$ic (o#ic 4 Ho, ,i(( ,e #ain a "e)"n


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STRATEGIC MANAGEMENT & BUSINESS POLICY

11 TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 1

Basic Conceps

o! S"ae#ic

Mana#e$en

Documents

Business Policy Lectures