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Learning Objectives

Learning Objectives. Understand the types of strategic decisions for which different managers are responsible Describe a comprehensive model of strategic decision making Appreciate the importance of strategic management as a process

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Learning Objectives

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  1. Learning Objectives • Understand the types of strategic decisions for which different managers are responsible • Describe a comprehensive model of strategic decision making • Appreciate the importance of strategic management as a process • Give examples of strategic decisions that companies have recently made

  2. Corporate level: board of directors, CEO & administration [Highest] Business level: business and corporate managers [Middle] Functional level: Product, geographic, and functional area managers [Lowest] Three Levels of Strategy

  3. Alternative Strategic Management Structures

  4. Strategic Management Decisions: Corporate • Domain Definition: Where to Compete? • Defines Scope of Firm • In Which Industries Will We Compete? • Must Be Reflected in Mission • Choice of businesses, entry (diversification) and exit (divestiture) decisions, resource allocation/ priorities for growth • Corporate Financial: Dividend Policies, Sources of Long-term Financing

  5. Strategic Management Decisions: Business • Domain Navigation: How to Compete? • Competitive Strategy • Help bridge decisions at the corporate and functional levels • Less costly, risky, and potentially profitable than corporate-level decisions • More costly, risky, and potentially profitable than functional-level decisions • Include decisions on plant location, marketing segmentation, and distribution

  6. Strategic Management Decisions: Functional • Implement the overall strategy formulated at the corporate and business levels • AKA Tactics • Involve specific action-oriented and operational issues • Relatively short range (typically within the coming year) and low risk • Modest costs: depend upon available resources • Relatively concrete and quantifiable

  7. Strategic Management Process • Businesses vary in formulation and other processes • The basic components of the models used to analyze strategic management are similar • Strategic management is a process—a flow of information through interrelated stages of analysis toward the achievement of some goal

  8. Phases of Strategic Management Process • Formulation • Implementation • Control

  9. Strategic Management Model

  10. Word (Acronym) of the Day SWOT ANALYSIS Strengths Weaknesses Opportunities Threats

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