First things

1. First things • Any questions? • Introductions MGT 490C Strategic Management

2. StrategiesNetflix, Blockbuster, Redbox "Getting Movies from a store or a mailbox, or just a box" (NYTimes, August 5, 2006)  reading--available through Vista course site for MGT 490C (BA490C)   • (https://vista.nau.edu)  • Path is "Course Content/Readings/Netflix"    • How do the strategies of Netflix, Blockbuster, and Redbox differ? • Can you identify any of the areas for objectives listed on p. 7 of H&W that their objectives differ?  • Distinguish each level of the hierarchy of strategy for each company, e.g., give an example of each level of strategy. MGT 490C Strategic Management

3. Strategy Strategy Goals Current Situation Objectives Environment MGT 490C Strategic Management

4. Netflix, Blockbuster, Redbox Are these objective important to all three? • Profitability • Efficiency • Growth • Shareholder wealth • Utilization of resources • Reputation • Contributions to employees • Contributions to society • Market leadership • Survival • Personal needs of top management MGT 490C Strategic Management

5. In what areas do their goals differ?

6. Strategy—what is it? Strategy…a plan for interacting with the competitive environment to achieve organizational objectives and goals • Strategy is a means to goals and objectives. • Without objectives and goals strategies lack direction. • Therefore, goals and objectives must be defined, or reexamined and redefined when formulating strategy. (adapted from Daft, 2001) MGT 490C Strategic Management

7. Major elements of strategy • Strategy formulation—defining long-term objectives & goals, developing long-range plans for the effective management of environmental opportunities and threats, taking into account strengths and weaknesses • Strategy implementation--Process by which strategies and policies are put into action through the development of programs, budgets, and procedures to achieve objectives MGT 490C Strategic Management

8. Strategy—where is its focus? • Long-term • Encompasses entire organization • External—to determine • What the firm seeks to be • What it seeks to accomplish (overall goals and objectives) • Opportunities and threats in the environment • The path it will take to succeed within the environment • Internal—to determine • Capabilities, i.e., strengths and weaknesses • The design of the organization • Supporting functional (organizational) • objectives • strategies • plans MGT 490C Strategic Management

9. Strategic management process Reference Fig. 1.1 & 1.3 • Environmental scanning • Strategy formulation • Strategy implementation • Evaluation and control MGT 490C Strategic Management

10. Distinguish the three elements of the hierarchy of strategy for each company. • Corporate • Business • Functional • Marketing • Finance • Operations MGT 490C Strategic Management

11. Session 2Strategic Management • Any questions? • Strategic management concepts • Strategy: meaning, perspective, & value • Strategic management process • Levels of strategy • Application of concepts to Netflix, Blockbuster, & Redbox MGT 490C Strategic Management

12. Strategy Exercise MGT 490C Strategic Management

13. Netflix, Blockbuster, Redbox How do their strategies differ? MGT 490C Strategic Management

14. Review questions • What is strategic management & why does it matter? • What are the major steps in the strategic management process. • Identify the 3 levels of strategy in the hierarchy of strategy. • What distinguishes each level of strategy? MGT 490C Strategic Management