STRATEGIC MANAGEMENT ICS 395 AJ ALMANEY, PH.D.

STRATEGIC MANAGEMENTICS 395

AJ ALMANEY, PH.D.

INFORMATION FORTHE INDEX CARDS

• COURSE NO.: ICS 395

• DAY:

• YOUR NAME:

• PHONE NO.:

• NAME OF CASE:

• YOUR GROUP NO.:

THE MEANING OF ANALYSIS

• IT IS THE PROCESS OF BREAKING A SYSTEM DOWN INTO SUBCOMPONENTS AND STUDYING EACH SUBCOMPONENT IN TERMS OF SPECIFIC CRITERIA.

THE MEANING OF STRATEGIC ANALYSIS

• IT IS THE PROCESS OF ANALYZING AN ORGANIZATION FROM THE STRATEGIC MANAGEMENT PERSPECTIVE.

THE MEANING OF STRATEGIC MANAGEMENT

• IT IS THE PROCESS OF ANALYZING THE ORGANIZATION’S INTERNAL AND EXTERNAL ENVIRONMENTS AS A BASIS FOR SELECTING A COURSE OF ACTION DESIGNED TO ACHIEVE THE ORGANIZATION’S LONG AND SHORT-TERM OBJECTIVES.

INTERNAL ANALYSIS

INTERNAL ANALYSIS

IT IS THE PROCESS OF EXAMINING THE INTERNAL

OPERATIONS OF THE COMPANY TO IDENTIFY

THE STRENGTHS AND WEAKNESSES

INTERNAL ANALYSISEXAMPLES

• MICROSOFT: ORGANIZATIONAL HEALTH INDEX

• THE UNIVERSITY OF CHICAGO: ATTENTION TO SOFT STUFF

EXTERNAL ANALYSIS

EXTERNAL ANALYSIS

IT IS PROCESS OF EXAMINING THE EXTERNAL

FORCES TO IDENTIFY THE OPPORTUNITIES AND

THREATS

EXTERNAL ANALYSISEXAMPLES

• OLD NAVY: FASTEST GROWING GAP UNIT– JENNY MING’S ABILITY TO PREDICT

FASHION– SEVENTEEN MAGAZINE, DAUGHTERS– TRIPS TO PARIS AND LONDON

• GENERAL MOTORS:

• DEPAUL UNIVERSITY

BENEFIT OFENVIRONMENTAL

ANALYSIS

• HEIGHTENS AWARENESS OF INTERNAL CAPABILITIES AND EXTERNAL OPPORTUNITIES AND CHALLENGES.

DOES ANALYSIS IMPROVE THE BOTTOM LINE?

• CONTINENTAL AIRLINES: WHERE DO WE NEED TO IMPROVE? BENCHMARKING, JD POWERS, FORTUNE’S BEST PLACES TO WORK

• IMPROVES THE BOTTOM LINE: SEARS’ STUDY: 5% -> 1.3% ->5%

AN OVERVIEW OF THE STRATEGIC ANALYSIS

FRAMEWORK

• THE DESCRIPTIVE PHASE

• THE DIAGNOSTIC PHASE

• THE PRESCRIPTIVE PHASE

THE DESCRIPTIVE PHASE

• THE PROCESS OF GATHERING INFORMATION ABOUT THE COMPANY’S INTERNAL AND EXTERNAL ENVIRONMENTS

THE DIAGNOSTIC PHASE

• IT INVOLVES EVALUATING AND PASSING JUDGEMENT ON THE GATHERED INFORMATION.

• ITS PURPOSE IS TO ASSESS THE PHYSICAL AND EMOTIONAL HEALTH OF THE COMPANY (I.E., ITS STRENGTHS AND WEAKNESSES)

THE PRESCRIPTIVEPHASE

• DEVELOPING A STRATEGY TO IMPROVE THE ORGANIZATION’S COMPETITIVE POSITION

FOCUS OF THE DESCRIPTIVE PHASE

• A. PROFILE OF THE INTERNAL ENVIRONMENT– THE CORPORATE LEVEL– THE FUNCTIONAL LEVE

• B. PROFILE OF THE EXTERNAL ENVIRONMENT– THE TASK ENVIRONMENT – THE GENERAL ENVIRONMENT

THE CORPORATE LEVEL

• STRATEGIC MANAGERS– BOARD OF DIRECTORS– TOP MANAGEMENT

• ENVIRONMENTAL ANALYSIS– INTERNAL ANALYSIS– EXTERNAL ANALYSIS

CORPORATE LEVEL (CONT’D)

• STRATEGY FORMULATION– MISSION– VALUES STATEMENT– VISION– OBJECTIVES– GRAND STRATEGIES– COMPETITIVE STRATEGIES– SLOGAN

MISSION

• THE ORGANIZATION’S REASON FOR EXISTENCE

• IT ANSWERS THE QUESTION: WHAT BUSINESS ARE WE IN?

PURPOSE

• THE REASON FOR THE ORGANIZATION’S EXISTENCE

THE MISSION STATEMENT OF HARD ROCK CAFE

• TO SPREAD THE SPIRIT OF ROCK ‘N’ ROLL BY DELIVERING AN EXCEPTIONAL ENTERTAINMENT AND DINING EXPERIENCE.

THE MISSION OFSTARBUCKS

• TO ESTABLISH STARBUCKS AS THE PREMIER PURVEYOR OF THE FINEST COFFEE IN THE WORLD WHILE MAINTAINING OUR UNCOMPROMISING PRINCIPLES AS WE GROW

THE MISSION OFPAPA JOHN’S

• PEOPLE ARE OUR MOST IMPORTANT ASSET. WE WILL PROVIDE CLEAR, CONSISTENT, STRATEGIC LEADERSHIP AND CAREER OPPORTUNITIES FOR OUR TEAM MEMBERS WHO EXHIBIT PASSION TOWARD THEIR WORK AND UPHOLD OUR CORE VALUES.

VALUES STATEMENT

• VALUES REFER TO MANAGEMENT BELIEFS, PRINCIPLES, AND COMMITMENTS TO STAKEHOLDERS.

• PRIMARY STAKEHOLDERS ARE: EMPLOYEES, CUSTOMERS, SHAREHOLDERS, AND SOCIETY.

VALUES OFHARD ROCK CAFE

• WE ARE COMMITTED TO BEING AN IMPORTANT, CONTRIBUTING MEMBER OF OUR COMMUNITY AND OFFERING THE HARD ROCK FAMILY A FUN, HEALTHY, AND NURTURING WORK ENVIRONMENT WHILE ENSURING OUR LONG-TERM SUCCESS

FORD’SGUIDING PRINCIPLES

• QUALITY COMES FIRST

• CUSTOMERS ARE OUR FOCUS

• EMPLOYEE INVOLVEMENT IS OUR WAY OF LIFE

• DEALERS AND SUPPLIERS ARE OUR PARTNERS

• INTEGRITY IS NEVER COMPROMISED

VALUES AND REPUTATION

• BEN AND JERRY’S• WAL-MART• HOME DEPOT• JOHNSON AND JOHNSON• DISNEY • SOUTHWEST AIRLINES• COCA COLA• MICROSOFT

VALUES AND REPUTATION

• JOHNSON AND JOHNSON (1)• COCA COLA (2)• BEN AND JERRY’S (5)• WAL-MART (6)• HOME DEPOT (8)• DISNEY (10)• MICROSOFT (15)• SOUTHWEST AIRLINES (25)

JOHNSON AND JOHNSON’SCREDO

• OUR FIRST RESPONSIBILITY IS TO THE DOCTORS, NURSES AND PATIENTS, TO MOTHERS AND FATHERS AND ALL OTHERS WHO USE OUR PRODUCTS AND SERVICE.

• WE ARE RESPONSIBLE TO OUR EMPLOYEES, THE MEN AND WOMEN WHO WORK WITH US THROUGHOUT

J AND J’S CREDO

• THE WORLD

• WE ARE RESPONSIBLE TO THE COMMUNITIES IN WHICH WE LIVE AND WORK AND TO THE WORLD COMMUNITY AS WELL.

• OUR FINAL RESPONSIBILITY IS TO OUR STOCKHOLDERS. BUSINESS MUST MAKE A PROFIT.

COMPANIES WITHWORST REPUTATION

• EXXON

• K-MART

VISIONTRADITIONAL MEANING

• HALLUCINATION

• SOMETHING SEEN DURING HALLUCINATION

• THE POWER TO ANTICIPATE FUTURE EVENTS

VISIONARY

• A PERSON WHO HALLUCINATES

• A PERSON WHO IS GIVEN TO FANCIFUL OR IMPRACTICAL IDEAS

• A PERSON WHO IS GIVEN TO AUDACIOUS, SPECULATIVE IDEAS

EXAMPLES OF VISIONAIRESHISTORICAL ONES

• THE WRIGHT BROTHERS, 1903

• PHILO FARNSWORTH, 1939

• EDWIN LAND, 1947

• JOHN F. KENNEDY, 1961

VISIONARIESRECENT ONES

• FRED SMITH

• TED TURNER

• SAM WALTON

• MICHAEL DELL

VISION

• IT DESCRIBES WHAT THE COMPAY ASPIRES TO BECOME

STARBUCKSMISSION OR VISION?

• TO ESTABLISH STARBUCKS AS THE PREMIER PURVEYOR OF THE FINEST COFFEE IN THE WORLD WHILE MAINTAINING OUR UNCOMPROMISING PRINCIPLES AS WE GROW

EXAMPLES OF VISION STATEEMENTS

• GENERAL MOTORS:

• OUR VISION FOR GM IS TO BE THE WORLD LEADER IN TRANSPORTATION PRODUCTS AND SERVICES, COMMITTED TO TOTAL CUSTOMER ENTHUSIASM THROUGH PEOPLE, TEAMWORK, TECHNOLOGY, AND CONTINUOUS IMPROVEMENT.

GM VISION(CONT’D)

• TO ACHIEVE OUR VISION, WE MUST GENERATE CUSTOMER ENTHUSIASM IN THE MARKETPLACE THAT TRANSLATES INTO LEADERSHIP IN SALES, EARNINGS, AND RETURNS ON INVESTMENT AND ASSETS.

VISION OFHOLY CROSS HOSPITAL

• TO BECOME THE RECOGNIZED HEALTHCARE PROVIDER OF CHOICE WITHIN THE COMMUNITY BY ACHIEVING AN EXCEPTIONAL SERVICE, SUPERIOR QUALITY, LOW COST, AND CONVENIENT ACCESS. ,

HOLY CROSS VISION(CONT’D)

• WE WILL ACHIEVE THIS BY BRINGING PARTNERS, LEADERS, AND PHYSICIANS TOGETHER INTO A COHESIVE TEAM THAT IS COMMITTED TO OUR CORE VALUES OF SERVICE, EXCELLENCE, RESPECT, VALUE, AND ENTHUSIASM.

COMPONENTS OF AVISION STATEMENT

• STATE WHAT YOUR COMPANY ASPIRES TO BECOME

• IDENTIFY THE INTERNAL CONDITIONS (CORPORATE CULTURE) THAT WILL HELP IN IMPLEMENTING IT

OBJECTIVE

• AN EXPECTATION TARGET THAT IS BOTH MEASURABLE AND TIME BOUND.

A GOOD OBJECTIVE

• SPECIFIC

• MEASURABLE

• ATTAINABLE

• RELEVANT

• TIME BOUND

STRETCH OBJECTIVES

• THEY ARE OBJECTIVES THAT ARE PERCEIVED AS IMPOSSIBLE TO ACHIEVE

STRETCH OBJECTIVESGENERAL ELECTRIC

• INCREASE SALES FROM 13% TO 25%

• MAKE RESOURCES AVAILABLE TO ADHIEVE THE OBJECTIVE

STRETCH OBJECTIVESCITIBANK

• ACHIEVERS VS. NON-ACHIEVERS

• CONSEQUENCES– HUMILIATION– BURNOUT– TURNOVER– UNETHICAL BEHAVIOR

GOAL

• AN EXPECTATION TARGET THAT IS NEITHER MEASURABLE NOR BOUND BY A TIME HORIZON.

GRAND STRATEGY

• IT IS THE GENERAL PLAN OF ACTION TO ACHIEVE CORPORATE OBJECTIVES

• EXAMPLES:– MARKET DEVELOPMENT

• WAL- MART IN GERMANY

– CONCENTRIC DIVERSIFICATION• PEPSICO: TROPICANA• COCA COLA: MINUTE MAID

GRAND STRATEGY

• HORIZONTAL INTEGRATION– L’OREAL AND MEBELINE

• VERTICAL INTEGRATION– GENERAL MOTORS FORWARD AND

BACKWARD INTGEGRATION

GRAND STRATEGY

• CONGLOMERATE DIVERSIFICATION– GE: MEDICAL SYSTEMS, AIRCRAFT

ENGINES, POWER GENERATORS, LIGHTING, APPLIANCES, CAPITAL

– DAEWOO: TRADING, SHIPBUILDING, CARS, TELECOMMUNICATIONS , DINERS CLUB…

– AMOZON.COM:

TACTICS

• REFERS TO SHORT-TERM (DAY TO DAY OR MONTH TO MONTH) DECISIONS THAT ENABLE THE COMPANY TO ADAPT TO ENVIRONMENTAL CHANGES.

COMPETITIVE STRATEGY

• A COURSE OF ACTION INTENDED TO PROVIDE THE ORGANIZATION WITH A SUSTAINABLE COMPETITIVE ADVANTAGE.

MICHAEL PORTER COMPETITIVE STRATEGIES

• COST LEADERSHIP– DELL COMPUTERS.

• PRODUCT DIFFERENTIATION– TOYOTA

• FOCUS– DELIA

WHICH STRATEGY ISTHE MOST EFFECTIVE?

• A COMBINATION STRATEGY

• WAL-MART: COST LEADERSHIP AND CUSTOMER SERVICE

SELECT SLOGANS

• FORMULATE A STRATEGIC SLOGAN

• FORMULATE A MARKETING SLOGAN

STRATEGIC SLOGAN

• A MOTTO THAT SUMS UP THE COMPANY’S CORPORATE CULTURE, ITS VISION, OR GRAND STRATEGY.

EXAMPLES OFSTRATEGIC SLOGANS

• FORD: QUALITY IS JOB ONE

• APPLE: THINK DIFFERENT

• SOUTHWEST AIRLINES: A SYMBOL OF FREEDOM

• HEWLETT PACKARD: INVENT

• TOYOTO: THE RELENTLESS PURSUIT OF PERFECTION

MARKETING SLOGAN

• A MOTTO DESIGNED TO SELL A PRODUCT OR SERVICE.

MARKETING SLOGANEXAMPLES

• PEPSI: THE JOY OF COLA

• HOOVER: DEEP DOWN, YOU WANT HOOVER

• BAYER ASPIRING: POWERFUL PAIN RELIEVER AND MORE

• MCDONALD’S: DID SOMEBODY SAY MCDONALDS

• MICROSOFT: WHERE DO YOU WANT TO GO TODAY?

CORPORATE LEVEL (CONT’D)

• STRATEGY IMPLEMENTATION– LEADERSHIP– MOTIVATION– COMMUNICATION– CORPORATE CULTURE– ORGANIZATIONAL STRUCTURE– POLICIES– BUDGETARY ALLOCATIONS

CORPORATE CULTURE

• A SET OF BEHAVIORS OR QUALITIES THAT ARE VALUED BY A GROUP.

• DAIMLER/CHRYSLER– MERGING SPEED (NUKE IT OUT)– MEETINGS LENGTH– SMOKING– LUNCH BEVERAGE– ADDRESSING THE CEO

THE FUNCTIONAL LEVELMARKETING

• PRODUCTS/SERVICES

• MARKET SHARE

• TARGET MARKET

• SALES VOLUME

• ADVERTISING AND PROMOTION

• DISTRIBUTION

• PRICING

PRODUCTION

• LOCATION OF FACILITIES

• NEWSNESS OF FACILITIES

• QUALITY CONTROL

• PRODUCTION CAPACITY

• INVENTORY

HUMAN RESOURCES

• RECRUITMENT

• SELECTION

• TRAINING AND DEVELOPMENT

• COMPENSATION

• PERFORMANCE APPRAISAL

• SUCCESSION PLANNING

FINANCE

• MANAGEMENT OF CASH

• MANAGEMENT OF INVENTORIES

• MANAGEMENT OF ACCOUNTS RECEIVABLE

• MANAGEMENT OF TOTAL ASSETS

• GENERAL PROFIT PICTURE

THE DIAGNOSTIC PHASEDIAGNOSE THE STRENGTHS

AND WEAKNESSES

• A STRENGTH IS A FAVORABLE CONDITION IN THE ORGANIZATION’S INTERNAL ENVIRONMENT.

• A WEAKNESS IS AN UNFAVORABLE CONDITION IN THE ORGANIZATION’S INTERNAL ENVIRONMENT.

STRENGTHS AND WEAKNESSE OF THECORPORATE LEVEL

• STREATEGIC MANAGERS:– BOARD OF DIRECTORS– TOP MANAGEMENT

• STRATEGY FORMULATION:– MISSION, VISION, OBJECTIVES, GRAND

STRATEGIES, COMPETITIVE STRATEGIES

STRENGTHS AND WEAKNESSE OF THECORPORATE LEVEL

• STREATEGY IMPLEMENTATION:– SELECT TWO OF THE FOLLOWING:

MOTIVATION, COMMUNICATION, CORP. CULTURE, STRUCTURE, POLICIES, BUDGET

STRENGTHS AND WEAKNESSE OF THEFUNCTIONAL LEVEL

• MARKETING

• FINANCE

• SELECT TWO OF:– PRODUCTION, R&D, HUMAN

RESOURCES, PUBLIC AFFAIRS

IDENTIFY THE DISTINCTIVE COMPETENCY

• THAT ASPECT OF THE COMPANY’S OPERATIONS THAT GIVES IT A SUSTAINABLE ADVANTAGE OVER ITS COMPETITORS.

DISTINCTIVE COMPETENCYEXAMPLES

• SOUTHWEST AIRLINES

• ENTERPRISE RENT A CAR

DISTINCTIVE COMPETENCYTEST QUESTIONS

• CAN IT BE EASILY COPIED BY THE COMPETITORS?

• DOES IT OFFER ANY VALUE TO THE CUSTOMERS?

CORE COMPETENCY

• THE PRINCIPAL BUSINESS OF THE COMPANY

• THE BUSINESS THAT THE COMPANY STARTED OUT WITH

• CORE PRODUCTS, CORE MARKET, CORE CUSTOMERS

IDENTIFY THE KEY WEAKNESS

• THE KEY WEAKNESS IS ANY UNFAVORABLE CONDITION THAT CAN PLACE THE COMPANY AT A COMPETITIVE DISADVANTAGE OR DRIVE IT OUT OF BUSINESS.

DIAGNOSE THE OPPORTUNITIES AND

THREATS

• AN OPPORTUNITY IS A FAVORABLE CONDITION IN THE EXTERNAL ENVIRONMENT.

• A THREAT IS AN UNFAVORABLE CONDITION IN THE EXTERNAL ENVIRONMENT.

OPPORTUNITIES/THREATSEXAMPLE

• CHARLES SCHWAB VS. MERRILL LYNCH

• E- COMMERCE AND HOME DEPOT

• BREAKFAST CEREAL , BAGELS, AND MUFFINS

• MIXED EFFECTS OF FORCES: FILEN’S BASEMENT

DIAGNOSE THE OPPORTUNITIES AND

THREATS• IDENIFY THE OPPORTUNITIES AND

THREATS IN:– THE TASK ENVIRONMENT (INDUSTRY,

COMPETITORS, CUSTOMERS …)

– THE GENERAL ENVIRONMENT (ECONOMY, DEMOGRAPHICS, TECHNOLOGY …)

• SELECT THE KEY OPPORTUNITY AND KEY THREAT

DIAGNOSE THE PROBLEMS:DEFINITION OF TERMS

• SYMPTOM

• CAUSE

• PROBLEM

THE MEANING OFSYMPTOM AND CAUSE

• A SYMPTOM IS A SIGN OR AN INDICATION OF THE EXISTENCE OF A PROBLEM

• A CAUSE IS THE CONDITION THAT GIVES RISE TO THE SYMPTOM

THE DIFFERENCE BETWEEN SYMPTOM AND CAUSE

• A SYMPTOM IS AN INTERNAL WEAKNESS. A CAUSE CAN BE EITHER AN INTERNAL WEAKNESS OR AN EXTERNAL THREAT.

• A SYMPTOM IS A DEPENDENT VARIABLE. A CAUSE IS AN INDEPENDENT VARIABLE

• A SYMPTOM IS READILY KNOWN, A CAUSE IS NOT

THE MEANING OF PROBLEM

• A PROBLEM IS A GAP BETWEEN THE EXISTING CONDITIONS AND THE DESIRED CONDITIONS

STATEMENT OF THE PROBLEM

• A PROBLEM IS STATED IN TERMS OF AN INTERNAL COMPONENT WHERE THE SYMPTOM LIES

STATEMENT OF THE PROBLEM

• PROBLEM: FINANCE– SYMPTOM: DECLINING PROFITS

• PROBLEM: HUMAN RESOURCES– SYMPTOM: HIGH TURNOVER

• PROBLEM: R&D– SYMPTOM: LACK OF NEW PRODUCTS

• PROBLEM: PRODUCTION:– EQUIPMENT BREAKDOWNS

STATEMENT OF THE PROBLEM, SYMPTOM, AND

CAUSES

• PROBLEM: FINANCE• SYMPTOM: LOW PROFIT MARGIN• CAUSES:

– DECLINING MARKET SHARE– POOR PRODUCT QUALITY– STIFF COMPETITION– LACK OF PRODUCT INNOVATION

THE STRATEGIC MATCH

• IT IS THE PROCESS OF ESTABLISHING LINKAGES BETWEEN THE INTERNAL STRENGTHS AND WEAKNESSES AND THE EXTERNAL OPPORTUNITIES AND THREATS

DIMENSIONS OFSTRATEGIC MATCH

• LEVERAGE=STRENGTH AND OPPORTUNITY: HP, OFFICE DEPOT

• CONSTRAINT=WEAKNESS AND OPPORTUNITY: POSTAL SERVICE

• MAINTENANCE=STRENGTH AND THREAT: PIZZA HUT, E-BAY

• VULNERABILITY=WEAKNESS AND THREAT: MONTGOMERY WARD, COM ED

THE PRIMARY STRATEGICMATCH POSITION

• IT IS THE DIMENSION THAT MOST CLOSELY DESCRIBES THE COMPANY’S CONDITIONS.

DETERMINING THE PRIMARY STRATEGIC

MATCH POSITION

• LOGIC/COMMON SENSE

• PORTFOLIO PLANNING TOOLS– THE BOSTON CONSULTING GROUP

MATRIX (BCG)– THE GE PLANNING GRID

THE BCG MATRIX

STAR

DOG

QUESTION MARK

CASH COW

MARKET SHARE

MARKET GROWTH

GE PLANNING GRID

Business Strategy/ Competitive Position

Industry Attractiveness

BUSINESS STRENGTHS/ COMPETITIVE POSITION

• SUCCESS FACTORS– MARKET SHARE– BREADTH OF PRODUCT LINE– DISTRIBUTION CHANNELS– PRICE COMPETITIVENESS– ADVERTISING EFFECTIVENESS– PRODUCT QUALITY– CUSTOMER SERVICE

INDUSTRY ATTRACTIVENESS

• EVALUATION CRITERIA– INDUSTRY GROWTH– INDUSTRY SIZE– INDUSTRY CYCLICALITY– INDUSTRY SEASONALITY– ENTRY AND EXIST BARRIERS– COMPETITORS– GOVERNMENT REGULATIONS

GE PLANNING GRID

Leverage Constraint

Maintenance Vulnerability

Business Strength/ Competitive Position

Industry Attractiveness

IDENTIFY THE DISTINCTIVE COMPETENCY AND MAJOR

WEAKNESS OF THE KEY COMPETITOR

FORMULATE A STRATGIC PLAN

• WRITE A NEW MISSION STATEMENT

• WRITE A NEW VISION STATEMENT

• WRITE A VALUES STATEMENT

• SET LONG AND SHORT-TERM OBJECTIVES

• SELECT GRAND STRATEGIES

FORMULATE A STRATEGIC PLAN

• FORMULATE OPERATIONAL STRATEGIES

• SELECT ONE STRATEGIC SLOGAN

• SELECT ONE MARKETING SLOGAN

WRITE A NEWMISSION STATEMENT

• BUSINESS DOMAIN

• PRODUCTS AND SERVICES

• TARGET MARKET

• DISTRIBUTION CHANNELS

WITE A NEWVISION STATEMENT

• WHAT DO YOU ASPIRE TO BECOME?

• WHAT TYPE OF CORPORATE CULTURE WOULD YOU CREATE TO HELP YOU GET THERE?

WRITE AVALUES STATEMENT

• WHAT TYPE OF RESPONSIBILITIES DO YOU HAVE TOWARD YOUR MAJOR STAKEHOLDERS?

• INCLUDE AT LEAST FOUR GROUPS OF STAKEHOLDERS

CORPORATE OBJECTIVES

• SET LONG -TERM CORPORATE OBJECTIVES

• SET SHORT-TERM CORPORATE OBJECTIVES

SELECT A GRAND STRATEGY

• GENERATE STRATEGIC OPTIONS

• GENERATE A SET OF EVALUATIVE CRITERIA: EXPANSION IN EUROPE, MERGER

• APPLY THE CRITERIA TO THE STRATEGIC OPTIONS

• CHOOSE THE MOST EFFECTIVE STRATEGY

SELECT ACOMPETITIVE STRATEGY

• COST LEADERSHIP, PRODUCT DIFFERENTIAION, FOCUS

• JUSTIFY YOUR SELECTION

OPERATIONAL STRATEGY

• A DETAILED PLAN OF ACTION FORMULATED TO ACHIEVE DEPARTMENTAL OBJECTIVES

FORMULATE TWO OPERATIONAL STRATEGIES• AT LEAST ONE TO IMPLMENT THE

GRAND STRATEGY

• A SECOND TO SOLVE A PROBLEM OR REMOVE A WEAKNESS

• OTHERS IF APPLICABLE

STRUCTURE OF THE OPERATIONAL STRATEGY

• LONG AND SHORT-TERM OBJECTIVES

• SPECIFIC RECOMMENDATIONS CLASSIFIED BY SUBCOMPONENTS

• TIME TABLE

• COST

• SAVINGS, IF ANY