1 / 32

Strategic Management

Strategic Management. Dr. Hala Hattab November 21-23 Venue . Course Introduction . Welcome About Me About You (why you?) Why Strategy? Overview of Topics and Calendar Expectations Introduction of Concepts. Who are You? Self Introduction. Name Company Undergraduate Studies

quasim
Download Presentation

Strategic Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Strategic Management Dr. Hala Hattab November 21-23 Venue

  2. Course Introduction • Welcome • About Me • About You (why you?) • Why Strategy? • Overview of Topics and Calendar • Expectations • Introduction of Concepts

  3. Who are You? Self Introduction • Name • Company • Undergraduate Studies • Work experience, if any • What are you interested in? • What do you hope to gain from this course?

  4. Why You? • You will be principals in firms • You will have to decide what to do: What markets? What services? Where to dedicate your time? What kinds of people? • You probably will be part of a team.

  5. Why Strategy? • It’s about how businesses compete. • How to earn above average returns. • Selection of industries • Selection of segments • Choice of tactics • How to IMPLEMENT!

  6. Overview of Topics and Calendar • Day 1 • Introduction to Strategic Planning and Management • Why strategic management is important? • Strategic Management: Key Concepts • Strategic Planning for SMEs • Day 2 • Design a business plan for your organization • Day 3 • Design a business plan for your organization

  7. Expectations for the Course: You Will… • Struggle with figuring out what to do • Be prepared to participate in planning for your own firms • Study real business situation

  8. Introduction of Concepts • Strategic Management: The set of managerial decisions and actions that determines the long-run performance of an organisation. • Strategic Planning: The process of determining a company's long-term goals and then identifying the best approach for achieving those goals

  9. Why is strategic management important? • Gives everyone a role • Makes a difference in performance levels • Provides systematic approach to uncertainties • Coordinates and focuses employees

  10. Basics of Strategic Management • Four aspects that set strategic management apart • Interdisciplinary • Capstone of the Business degree • External focus • Competition • Internal focus • Future direction

  11. Strategic Management Process

  12. Strategic Management Process • Step 1: Identifying the organisation’s current mission, objectives, and strategies • Mission: the firm’s reason for being • Who we are, • What we do, and • Where we are now • Goals: the foundation for further planning • Measurable performance targets • Step 2: Conducting an external analysis • The environmental scanning of specific and general environments • Focuses on identifying opportunities and threats

  13. Strategic Management Process (cont’d) • Step 3: Conducting an internal analysis • Assessing organisational resources, capabilities, activities and culture: • Strengths (core competencies) create value for the customer and strengthen the competitive position of the firm. • Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage. Steps 2 and 3 combined are called a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats)

  14. Strategic Management Process (cont’d) • Step 4: Formulating strategies • Develop and evaluate strategic alternatives • Select appropriate strategies for all levels in the organisation that provide relative advantage over competitors • Match organisational strengths to environmental opportunities • Correct weaknesses and guard against threats

  15. Strategic Management Process (cont’d) • Step 5: Implementing strategies • Implementation: effectively fitting organisational structure and activities to the environment • Effective strategy implementation requires an organisational structure matched to its requirements. • Step 6: Evaluating results • How effective have strategies been? • What adjustments, if any, are necessary?

  16. Levels of strategy

  17. End of part One

  18. Part Two: Business Plan

  19. What is a BP ? • A written document that • outlines an organization's overall direction, philosophy, and purpose • examines its currentstatus in terms of its strengths, weakness, opportunities, and threats • sets long-term objectives, and • formulates short-term tactics to reach them.

  20. The Strategic Mind behind BP • Focus the strategic parts of your plan related to: • Time and Energy to attain goals (predefine what is to be achieved) • Resource allocation (Count chickens before they hatch don’t take in too much. Promise what can be delivered) • Your Business and Competition (Analyze your strengths and weakness) • Employee communication (nice trick, don’t take the blame over you)

  21. Extended Tricks • Divide the work. Take The Correspondence. • Editable BP – make BP in revisions as you go in depth, make it finalized when you are sure about zero loopholes • Make another BP as a Plan 2, so that anytime you can seek in more resource (handy but a tough trick)

  22. How to Draft a Simple BP • Work on These lines: • Vision of organisation • Goal of future • Clients, Users, Target market • Edge of you / your team / company • Barriers to achieve the target • Better serve clients..how ?? • Ad more to target..possible ?? • Adding new customers / users / target market share • Accountings • Starting of the plan dates

  23. In theory, there is no difference between theory and practice. But, inpractice, there is." - Jan L.A. van de Snepscheut

  24. Simply Stated... Make your points clearly and crisply.

  25. Style counts… • Use bulleted or enumerated points whenever possible. • Leave a wide margin. • Try to utilize meaningful graphs and diagrams throughout the entire plan

  26. Basic Structure • Executive Summary • The Market • The Product • The Team • The Strategy • The Forecasts • Appendices

  27. Market Analysis • It should be as useful for you as it is for the investor. • Situation Analysis • Market Opportunity • Competitive Factors • Technical Feasibility • Risk/Reward Assessment

  28. The Product • Know when “less is more” • Readability geared for layman • Deep technical points can be reserved for an appendix “Market Driven Engineering”

  29. The Forecasts • Let’s be realistic! • 4 year model • Monthly detail only in years #1 and #2 • Drive data from “unit model” • Use ordinal numbers for months • Understand your DCF

  30. Executive Summary • This may be the only document that gets read; distill the most important points • Write it after the rest of the document, but put it 1st • Use same terminology, wording, and images • Provide your sense of valuation and likely deal structure

  31. Appendices • Stuff you wanted to put in the plan • Technical white-paper(s) • More detailed financial analysis, DCF, etc. • Additional competitive data • Additional market data/published reports • Articles about the company, product, market, team, etc…

  32. Concluding Remarks • Impress the reader with the thoroughness of your understanding of the market. • Make it understandable. • Value white-space. • Develop realistic, flexible financial forecasts

More Related