STRATEGIC MANAGEMENT SESSIONS & SEMINARS

1. STRATEGIC MANAGEMENTSESSIONS & SEMINARS October 3 & 10 … 2013 Session 1 - 4

2. Our goal? Learn about & practice all steps of strategic planning process • Choose a company for which to formulate a strategic business plan • Identify / formulate: - mission statement – framework w/in which strategy shall be crafted - corporate vision – where do we want to be in # years - business aims -> specific objectives • Scan the environment – carry out external, internal & industry analysis-> situationalanalysis -> Internal analysis - core business & competencies, resources available, corp. structure, required inputs, corp. culture => IFAS (Internal Factor Analysis Summary)

3. Our goal? Practice all steps of strategic planning process • Environment scanning cont’d: -> External analysis - PEST(LE) => EFAS (External Factor Analysis Summary) - Industry Analysis (task environment): -> Porter’s Five (Six) forces => Industry Matrix - Situational Analysis – finding a strategic fit b/w external opportu- nities & internal strengths - mitigating harmful effects of external threats due to internal weaknesses => SFAS (Strategic Factor Analysis Summary) => SWOT analysis

4. Strategic Management Model Existing business model Existing Mission, vision, goals, objectives, corp. values SWOT => Strategic choice External analysis -> opportunities, threats Internal analysis -> strengths, weaknesses Functional-level strategies Business-level strategies Corporate-level strategies Strategy implementation

5. Strategic Management Cycle

6. Strategic management – mgmt for distant horizons • Series of destinations which are coming closer with time for everyone • Where was the company yesterday? (if applicable) • Where is the company now ($, ext. environment, market)? What conditions is it in (internally)? • Where will the company be tomorrow? vs. Where can the company be tomorrow? vs. Where is the company likely to be tomorrow – if we do a, b, c, or nothing at all? • Nothing happens by itself => • => What are the business objectives? -> WHERE TO? • => What are the best ways to achieve these objectives? -> HOW, WHEN? 3. => What resources are necessary to execute the plan? -> w/WHAT & WHOM

7. Which sector? What company? … your choice • http://www.top500.de/g0037200.htm • http://www.europages.co.uk/ • http://www.hbi.cz/index.php?Lang=en • http://www.hoovers.com/ • http://www.marketresearch.com/ • http://www.business.com/ • http://www.expats.cz/directory/#482 • http://www.rusmarket.com/ • http://www.thomasnet.com/ • http://no1construction.com/ • http://dir.yahoo.com/business_and_economy/directories/companies/

8. Mission statement • Statement of purpose of existence and operations of a company w/info including: • Why are we here? -> purpose – PAST & NOW and FUTURE • Corp. aims • How do we add value to stakeholders? -> How do we fulfill our mission? The WHY … C A B

9. Mission statement • More specific mission statements may spell out: • What target market we wish to serve? • With what good/service -> product? • How are we unique - w/product, w/how we operate (e.g. environmental friendly) • Problems, questions?

10. Which companies do these mission statements represent? • "To experience the joy of advancing and applying technology for the benefit of the public“ • "To build a place where people can come to find and discover anything they might want to buy online." • "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts.

11. Mission statements Take a wild guess • BMW vs. Mercedes • McDonalds vs. KFC • IBM vs. Apple • Acer vs. Dell • Google vs. Yahoo

12. Mission statements – conclusion? Questions to consider • Why are some mission statements similar? • Why do they look so broad or general? • Would it pay to narrow a mission statement down? Your task • For the company of your choice, formulate a mission statement in your own words based on your current knowledge about the company. • Identify the mission statement based on your research.

13. Vision statement • http://mystrategicplan.com/resources/topic/vision-statements/ • Company image in the future • What it wants to become by a certain point in time -> where it wants to go and how it intends to get there • May also be roughly considered as a framework for strategic planning • The audience? …. Stakeholders & market • Employees – it provides direction and guidelines for their conduct and should be inspirational • Banks – what they may be likely to finance • Shareholders – what projects are likely to bring more $ to them • Consumers / customers – what products to keep an eye for …

14. Corporate vision McDonalds: “… be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.“ Toyota: "To become the most successful and respected lift truck company in the U.S.” Avery Dennison : "To be recognized as the world's best coating and converting company by providing innovative decorating, information transfer and bonding solutions that enable our customers' success.“ - Manufacturing pressure sensitive labeling materials, retail apparel ticketing, graphics imaging media , office products, specialty tapes

15. Corporate vision Your task • Identify the corporate vision for your company • Can be found directly in the vision statement or derived from a mix of information provided by top management. • Will be subject to re-evaluation / reconsideration after SWOT analysis based on EFAS, IFAS, and SFAS are performed