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Strategic Management

Strategic Management. AIi Divandari Fall and Winter 2008. Ask yourself one question!.

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Strategic Management

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  1. Strategic Management AIiDivandari Fall and Winter 2008

  2. Ask yourself one question! How important is a picture when you are trying to assemble a jigsaw puzzle that has no straight edges and includes extra pieces in the box? Running a company in today’s markets is even more challenging than assembling that puzzle.

  3. Strategy The word strategy which is derived from the Greek word strategosmeans “the general’s view”.

  4. Why Study Strategy? Top executives are not lone wolves when it comes to devising and implementing strategy. They rely on lower-level managers to collect and analyze the regarding competition and commercial opportunities.

  5. Why Study Strategy? The better the employees understand the firm’s strategy, the better they’ll be able to make choices that are consistent with it.

  6. Strategic Management =Strategic Thinking + Strategic Planning

  7. Strategic Thinking and Strategic Planning Strategic thinking Synthetic Divergent Creative Intuitive Innovative Role of strategic thinking: to seek innovation and imagine new and very different futures that may lead a company to redefine its core strategies and even its industry Role of strategic planning:to realize and support strategies developed through strategic thinking process and integrate these back into the business Strategic Management Logical Systematic Conventional Prescriptive Convergent Strategic planning

  8. Two Brains, Two Cognitive Styles Left Hemisphere Right Hemisphere Verbal Sequential digital Logical analytic Rational Western thought Nonverbal Simultaneous analogical Gestalt synthetic Intuitive Eastern thought

  9. A Framework for Strategic Thinking Seeking new strategic opportunities Collection of hard data (the scientific skills) Collection of soft data (the perceptual skills) The Intuitive The Rational Accumulation of facts and evaluation of probabilities Accumulation of uncertainties and ambiguities Use of intuition to define the opportunities Use of analytical models to define the opportunities Unique interpretation of the strategic opportunity

  10. A combination of effective strategies and excellent execution Strategy Effective Ineffective Long Term Success Success Unlikely Excellent Execution Maybe successful For a while Failure Poor

  11. Strategic Management Process by which a firm incorporates the tools and frameworks for developing and implementing strategy.

  12. Competitive Advantage&The Process of Strategic Management

  13. Competitive Advantage When a firm sustains profits that exceeds the average for its industry the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.

  14. Competitive Advantage A competitive advantage enables a firm to create superior value for its customers and superior profits for itself.

  15. A Model of Competitive Advantage Resources Cost Advantage & Competitive Advantage Value Creation Distinctive Competencies Capabilities

  16. Strategic Management Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

  17. The Strategic Management Process Strategic Analysis k Strategy Vision and Mission Goals and Objectives Implementation and Strategic Leadership l

  18. Key Attributes of Strategic Management • Directs the organization toward overall goals and objectives • Includes multiple stakeholders in decision making • Needs to incorporate short-term and long-term perspectives • Recognizes trade-offs between efficiency and effectiveness

  19. Good Luck!

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