StratMgmt2-Brandon Shamim

Strategic ManagementStrategic Management

Presented by Presented by Brandon ShamimBrandon Shamim

UC RiversideUC RiversideGlobal Business Management ProgramGlobal Business Management Program

RoadmapRoadmap

– IntroductionsIntroductions– Overview of SessionOverview of Session– Questions & DiscussionsQuestions & Discussions


• History of StrategyHistory of Strategy• What is Strategy?What is Strategy?• What is its Value?What is its Value?• What is the Process?What is the Process?


• What is Strategy?What is Strategy?

Long-range, large-scale plans for Long-range, large-scale plans for interacting with the competitive interacting with the competitive environment to achieve company environment to achieve company objectives. objectives.


• What is its Value?What is its Value?– Individuals at all levels participate Individuals at all levels participate

in decision-making- improves in decision-making- improves performance and productivityperformance and productivity

– Group-based decisions improve Group-based decisions improve alternativesalternatives

– Enhance ability to anticipate and Enhance ability to anticipate and prevent problemsprevent problems

– Reduces resistance to changeReduces resistance to change


• What is the Process?What is the Process?7 Critical Tasks7 Critical Tasks

1.1. Create mission statementCreate mission statement2.2. Conduct internal analysisConduct internal analysis3.3. Conduct external analysisConduct external analysis4.4. Select long-term objectivesSelect long-term objectives5.5. Develop short-term strategiesDevelop short-term strategies6.6. Implement choices in consideration of Implement choices in consideration of

budgets, people, leadership, technologybudgets, people, leadership, technology7.7. Evaluate the process for futureEvaluate the process for future


• What is the Process?What is the Process?Implications:Implications:1.1. Flow of information that is Flow of information that is

interdependentinterdependent

2.2. Sequential thinkingSequential thinking

3.3. Requires constant feedbackRequires constant feedback

4.4. Dynamic systemDynamic system


• What is the Process?What is the Process?Formality- degree to which Formality- degree to which participants, responsibilities, participants, responsibilities, authority and discretion in authority and discretion in decision-making is specified.decision-making is specified.

Top level management Top level management participation is participation is essential.essential.


• Size of firm determines formalitySize of firm determines formality– Planning model- largePlanning model- large– Adaptive model- mediumAdaptive model- medium– Entrepreneurial model- small Entrepreneurial model- small

Concept in Action:Concept in Action: Exxon employs entrepreneurial model in Exxon employs entrepreneurial model in solar energy division while rest of company solar energy division while rest of company is more planning modelis more planning model


Study with 200 corp. execs. Study with 200 corp. execs. believe that as they become believe that as they become better at strategic planning they better at strategic planning they are able to respond to potential are able to respond to potential negative forces threatening their negative forces threatening their businesses.businesses.


Defining the Company ProfileDefining the Company Profile

1. Company Mission Statement & 1. Company Mission Statement & Social ResponsibilitySocial Responsibility


Corp. Mission Statement Corp. Mission Statement – Creates purpose for shared Creates purpose for shared

expectationsexpectations– Creates a direction for planningCreates a direction for planning– Establishes general guidelines Establishes general guidelines

for performance evaluationfor performance evaluation


Corp. Mission Statement Corp. Mission Statement 1.1. What is the basic product or service?What is the basic product or service?2.2. What customers do we serve?What customers do we serve?3.3. What are the economic goals?What are the economic goals?4.4. How do we view our responsibility to How do we view our responsibility to

stockholders, employers, customers, stockholders, employers, customers, environment, social issues?environment, social issues?

5.5. What is our operating philosophy in terms What is our operating philosophy in terms of quality, image, leadership?of quality, image, leadership?


Corp. Mission Statement Corp. Mission Statement 1.1. Addresses company philosophyAddresses company philosophy

2.2. Presents public imagePresents public image

3.3. Defines customers and qualityDefines customers and quality

4.4. Portrays self-conceptPortrays self-concept


The mission of the Cadillac Motor Co. is to The mission of the Cadillac Motor Co. is to engineer, produce, and market the world’s engineer, produce, and market the world’s finest automobiles known for uncompromised finest automobiles known for uncompromised levels of distinctiveness, comfort, levels of distinctiveness, comfort, convenience and refined performance. convenience and refined performance. Through its people, who are its strength, Through its people, who are its strength, Cadillac will continuously improve the quality Cadillac will continuously improve the quality of its products and services to meet or of its products and services to meet or exceed customer expectations and succeed exceed customer expectations and succeed as a profitable business. as a profitable business.


Corp. Social Responsibility (CSR)Corp. Social Responsibility (CSR)1. Company’s right to exist 1. Company’s right to exist

depends on external marketdepends on external market2. Government regulation2. Government regulation3. Influences long-term viability3. Influences long-term viability


Survey of 2,737 senior U.S. Survey of 2,737 senior U.S. managers revealed that 92% managers revealed that 92% believe that businesses should believe that businesses should take primary responsibility for take primary responsibility for environmental problems and 84% environmental problems and 84% believe they should do the same believe they should do the same for education. for education. Transcending Business Boundaries: 12,000 World Managers Transcending Business Boundaries: 12,000 World Managers View Change, Harvard Business Review (May-June 1991)View Change, Harvard Business Review (May-June 1991)


Concept in Action: Concept in Action: 1.1. Get in groupsGet in groups

2.2. Choose one business Choose one business

3.3. Prepare a company mission Prepare a company mission statement statement

4.4. Present itPresent it


2. Internal Analysis2. Internal Analysis

Resource Based View (RBV)Resource Based View (RBV)– Tangible assetsTangible assets– Intangible assetsIntangible assets– Organizational capabilitiesOrganizational capabilities


Resource Based View (RBV)Resource Based View (RBV)– Tangible assetsTangible assets

• Financial resources- cash flow, credit Financial resources- cash flow, credit rating, debt/equityrating, debt/equity

• Physical resources- buildings, raw Physical resources- buildings, raw materials, capital equipment, fixed materials, capital equipment, fixed assetsassets

Virgin Airline’s plane fleetVirgin Airline’s plane fleetFord Motor’s cash reservesFord Motor’s cash reserves


Resource Based View (RBV)Resource Based View (RBV)– Intangible assetsIntangible assets

• Intellectual property-patents, copyrights, Intellectual property-patents, copyrights, trade secretstrade secrets

• Brand/reputationBrand/reputation• Organizational cultureOrganizational culture

Nike’s brand nameNike’s brand name

Coke’s formulaCoke’s formula


Resource Based View (RBV)Resource Based View (RBV)– Organizational CapabilitiesOrganizational Capabilities

• People- human capitalPeople- human capital• Processes- procedures & policiesProcesses- procedures & policies

Dell Computer’s customer serviceDell Computer’s customer servicePixar’s creative teamPixar’s creative team


3. External Environment3. External Environment– Remote EnvironmentRemote Environment– Operating EnvironmentOperating Environment– Internal EnvironmentInternal Environment


Remote EnvironmentRemote Environment– EconomicEconomic– LegalLegal– PoliticalPolitical– SocialSocial– TechnologicalTechnological


Operating Environment Operating Environment

Common Mistakes in Identifying CompetitorsCommon Mistakes in Identifying Competitors1.1. Overemphasizing current over future entrantsOveremphasizing current over future entrants2.2. Overlooking smaller cos.Overlooking smaller cos.3.3. Assuming they will behave as they have in Assuming they will behave as they have in

the pastthe past4.4. Overestimating their tangible assets while Overestimating their tangible assets while

underestimating intangible assetsunderestimating intangible assets5.5. Assuming all firms are subject to the same Assuming all firms are subject to the same

constraints and opportunitiesconstraints and opportunities


Remote Environment

Social

Political

Technological

Legal

Economic

Operating Environment

Interna-tional

Labor

Customer

Customer

Supplier

Internal Environment

Organizational Marketing Financial Personnel

The Company


• SWOT AnalysisSWOT Analysis– StrengthsStrengths– WeaknessesWeaknesses– OpportunitiesOpportunities– ThreatsThreats


• Concept in ActionConcept in Action– Conduct a SWOT Analysis for you and Conduct a SWOT Analysis for you and

your career aspirations. your career aspirations.

What are your major strengths & What are your major strengths & weaknesses?weaknesses?

"Making the right choices is the most important "Making the right choices is the most important part of leadership. Every other element -- part of leadership. Every other element -- from developing and communicating ideas to from developing and communicating ideas to surrounding oneself with great people -- surrounding oneself with great people -- relies on making good decisions." relies on making good decisions."

- Rudy Giuliani- Rudy Giuliani

Thanks for Your AttentionThanks for Your Attention

310.854.4252 310.854.4252 [email protected]@look2beacon.com

www.look2beacon.comwww.look2beacon.com

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StratMgmt2-Brandon Shamim