Strategic Thinking

Strategic Thinking Mahesh P. Joshi Director of Innovation and Entrepreneurship Program, and Associate Professor of Global Strategy and Entrepreneurship School of Management, George Mason University President Joshi International, Inc. jiiconsulting@gmail.com Joshi - Strategic Thinking

The Definition of Strategic Management The Art and Science of Formulating, Implementing, and Evaluating Cross-Functional Decisions That Enable an Organization to Achieve Its Objectives Joshi - Strategic Thinking

The Basis for Good Strategic Decisions Intuition + Analysis Effective Strategic Decisions Joshi - Strategic Thinking

Keys to Formulating Strategies Business Mission Internal Strengths and Weaknesses External Opportunities and Threats Strategy Formulation Joshi - Strategic Thinking

A Comprehensive Strategic Management Model Perform External Audit Feedback Develop Mission Statement Establish Long- term Objectives Generate, Evaluate, and Select Strategies Establish Policies and Annual Objectives Allocate Resources Measure and Evaluate Performance Perform Internal Audit Strategy Formulation Strategy Implementation Strategy Evaluation Joshi - Strategic Thinking Establish Policies and Annual Objectives Establish Policies and Annual Objectives

The Stages and Activities in the Strategic Management Process Stages Activities Make decisions Integrate intuition with analysis Strategy formulation Conduct research Allocate resources Establish annual objectives Devise policies Strategy implementation Measure performance Take corrective action Review internal and external factors Strategy evaluation Joshi - Strategic Thinking

What is Strategy? Defining Strategy • Strategy is the overall plan for deploying resources to establish a favorable position. • Plan • Resources • Position Joshi - Strategic Thinking

What is Strategy? • Characteristics of strategic decisions: • Important. • Involve a significant commitment of resources. • Not easily reversible. • Strategy Vs. Tactics • Tactic is a scheme for a specific maneuver Joshi - Strategic Thinking

Robin Hood • Analyzing the case • What is the main problem here? • How can this problem be solved? What needs to be changed? Joshi - Strategic Thinking

Intended or Realized Strategy Deliberate Intended Realized Intended Deliberate Realized Strategy Strategy Strategy Emergent Unrealized Emergent Strategy Strategy Decisions by Organization to manage changes in the environment and possible deployment of resources FIO Decisions Financing Investing Operations Joshi - Strategic Thinking

Defining a Business Model: Practical Core Logic & Strategic Choices Value Network • Customer Relationship • Information Flow • Product/Service Flow • Supplier • Mission • Customer • Market Scope • Capabilities • Offering Create Value Capture Value • Resources/Assets • Processes/Activities • Cost • Profits • Financial Aspects Joshi - Strategic Thinking

Business Model: An Application • From Robin Hood to your organizations Joshi - Strategic Thinking

Strategy and Business Model: A Link THE FIRM Goals & Values Resources & Capabilities Structure & Systems THE INDUSTRY ENVIRONMENT Competitors Customers Suppliers STRATEGY Executed Through Processes of A Business Model Joshi - Strategic Thinking

Our Focus Today Context External: Industry and other factors AND Internal: Assets and its organization Mission Why a firm Exists What Societal Need is fulfilled • Performance • Long Term survival External changes Strategic Managers BOD Action about Asset Acquisition & Deployment of the assets Objectives Strategic Goals Long Term Short term People People Strategic Thinking Through Business Models Joshi - Strategic Thinking

McKinsey 7S model Joshi - Strategic Thinking

Strategic Thinking