MGT 682. Welcome to Strategic Management. Ray Van Ness. Outline for January 19, 2011. Introductions Overview of Your course & Brief Lecture – Critical Thinking and Thoughts about Strategy (3) Course purposes and objectives
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… the prism
This course will be conducted as a
Professional Development Workshop
The Professor will divide the class into 6 distinct Teams
Teams will elect (3) leaders for their team (President, VP, & Secretary)
(Team leaders earn extra credit)
… is a prerequisite to thinking strategically.
Thinking Strategically:The Three Big Strategic Questions
1.What’s the company’s present situation?
2.Where does the company need to go from here?
3.How should it get there?
A company’s answer to “How it will we get there?” is itsstrategy
OFFENSIVE(primary goal: grow market share; pressure competitors)
CONSERVATIVE (primary goal: avoid risks; minimize confrontations with strong competitors)
Strategy is HOWto . . .The Hows ThatDefine a Firm's Strategy
Copying competitive moves of other successful companies rarely works!
An Effective rarely works!Strategy leads to Sustainable Competitive Advantage.
Successful firms develop bases for competitive advantage
1. Cost leadership(Advantage: Known for low prices)
2. Differentiation(Advantage: Distinctive, desirable features to product or service)
3. Narrow market niche(Advantage: able to satisfy the need and desires of customers within a micro market)
(Antique Car parts companies)
4. Developing superior expertise and resources (Advantage: able to make it difficult for competitors to replicate products or services)
Strategies are always works in progress…
Changes may be necessary to react to
A Company’s strategy is partly Proactive and Partly Reactive
Strategies are dynamic and planners perpetually ask: rarely works!> Is our current path ineffective?> Should we become more aggressive and/or innovative (proactive)?> Should we become more flexible and adaptive to changing market and/or competitive realities?
Remember rarely works!
Common sizing rarely works!
Different industries have varying influence on corporate financial performance… Some industries offer more growth opportunities than others.
Therefore, comparing performance of firms in different industries can provide valuable information about key dimensions of a firm’s macro-strategy. If financial performance is unsatisfactory to stakeholders, the firm should revisit its macro-strategy.
(7) Out of Class assignment competing and this is part of their ongoing macro-strategy.
Team 6: You will be presenting Chapter 2: Crafting & Executing Strategy. Power Points are on the course website to help you with your planning. Select a MAXIMUM of 20 slides for your presentation.
Team 1: You will be presenting Case 1: Whole Foods Market. You will provide an overview of the case and then answer the following questions:
(a) What are the chief elements of the strategy that Whole Foods Market is pursuing?
(b) Do you think John Mackey has a good strategic vision for Whole Foods?
(c) How well is Whole Foods Market performing financially?
(d) Do you approve of the decision to acquire Wild Oats Market? What are the pros and cons?
(e) Were John Mackey’s Internet postings unethical or in any way inappropriate?
Teams 2, 3, 4, & 5:Read Chapter 2 in the text AND read Case 1 on page C-2 of the text
(8) Team Activity – Case 8 competing and this is part of their ongoing macro-strategy.