MBA 590 Strategic Management Chpt. 1,2

Strategic

Management

MBA 590 Concordia University- Wisconsin

Chapter 1

What is Strategic Management?

“Art and science of formulating,

implementing and evaluating cross-

functional decisions that enable an

organization to achieve its objectives,

i.e. “a company’s game plan”

The Nature of Strategic Management

• Strategy Formulation

• Strategy Implementation

• Strategy Evaluation

Strategic Management Process

Strategic

Formulation Vision/Mission

SWOTLT

Objectives

Alternative Strategies

Choosing a Strategy

Strategic

ImplementationAction Stage

Annual Objectives

Devise Policies

Motivate EmployeesAllocate Resources

Strategic

EvaluationCompetitive

Team

Review Internal Factors

Review External Factors

Measure PerformanceTaking Corrective

Action

Integrating Intuition & Analysis

Intuition- “Gut Feeling”

I’ve-already-made-up-my-mind-don’t-bother-me- with- the –facts” is not management by intuition, it is management by ignorance.

Logical, Systematic Approach

Organize qualitative and quantitative information to allow for effective decisions under conditions of uncertainty.

Competitive

AdvantageAdapting to Change

External Trends & Events

Internal Capabilities

Internal Competencies

Resources

• Vision and Mission

Key Terms In

• Competitive Advantage: Resiliency

• Strategists: Chief Learning Officers

• SWOT

• Long-Term & Short-Term Objectives/Policies

Strategic Management

• Challenging

• Measurable

• Consistent

• Reasonable

• Clear

Long-Term Objectives

• Challenging

• Realistic

• Measurable

• Consistent

• Prioritized

Annual Objectives

Where Are We Now ?

Where Do We Want To Go?

How Are We Going To Get There?

The Strategic Management Model

What is Strategic Planning ?

The Strategic Management Process

Benefits

•Dialog Better than

Paper shuffle

• Improved

Understanding

•Greater

Commitment

•Results

Pitfalls

• Used to Gain

Control

• Failure to

Communicate

• Failure to

Collaborative

Strategic Planning is Learning, Educating, Supporting

Strategic

Management

MBA 590 Concordia University- Wisconsin

Chapter 2

The Vision & Mission Statements

What do we want to become?• “A vision statement –

should be short,

preferably one

sentence.”

• “Shared vision

creates a

commonality of

interests”

• Future State

What is our Business?

• What is our mission? –

Reason for being!

• What do we want to be

and who will we serve?

• Mission is more

associated with

behavior and the

present

Broad enough in scope to allow for: a. Declaration of an attitude, outlook, and orientation.

b. Specification of product/service.

c. Specification of primary market, public image.

d. Specification of technology, and economic goals.

e. Appeal to diverse stakeholders

Characteristics of a Mission Statement

• Unanimity of purpose

• Basis for allocating resources

• Focal point for organization/employees

• Establish business climate

• Translate goals and objectives into work

structure

Characteristics of a Mission Statement

• Customer wants

• Quality

• There are multiple levels of decision makers

• Separation of owners (principals) and managers

(agents) if an agency relationship exists

Problems occur:

a. executives pursue own interests

b. adverse selection of manager

New Trends in Mission Components