bus 189 strategic management
Download
Skip this Video
Download Presentation
BUS 189 STRATEGIC MANAGEMENT

Loading in 2 Seconds...

play fullscreen
1 / 19

BUS 189 STRATEGIC MANAGEMENT - PowerPoint PPT Presentation


  • 131 Views
  • Uploaded on

BUS 189 STRATEGIC MANAGEMENT. CHAPTER 1, 8TH EDITION HILL & JONES, STRATEGIC MANAGEMENT DR. MARK FRUIN FALL 2009. INTRO BEFORE CHAPTER 1. REVIEW VALUE ADDING ACTIVITY SEQUENCE/STREAM INDUSTRIES & SECTORS FIRMS & FIRM BOUNDARIES VALUE CHAINS STRATEGY STACK

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' BUS 189 STRATEGIC MANAGEMENT' - isabelle-ortiz


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
bus 189 strategic management

BUS 189STRATEGIC MANAGEMENT

CHAPTER 1, 8TH EDITION

HILL & JONES, STRATEGIC MANAGEMENT

DR. MARK FRUIN

FALL 2009

intro before chapter 1
INTRO BEFORE CHAPTER 1
  • REVIEW
    • VALUE ADDING ACTIVITY SEQUENCE/STREAM
    • INDUSTRIES & SECTORS
    • FIRMS & FIRM BOUNDARIES
    • VALUE CHAINS
    • STRATEGY STACK
    • ENVIRONMENTS SHAPE FIRMS, EXCEPT IN SPECIAL CASES, WHICH ARE?
    • WHAT IS STRATEGY
    • 2.5 MODELS OF STRATEGY
why do some firms succeed while others fail
WHY DO SOME FIRMS SUCCEED WHILE OTHERS FAIL?
  • STRATEGIES HAVE MAJOR IMPACTS ON PERFORMANCE (THE HYPOTHESIS)
  • A STRATEGY IS A SET OF RELATED ACTIONS THAT MANAGERS TAKE TO INCREASE THEIR COMPANY’S PERFORMANCE (p. 3)
    • STRATEGIC LEADERSHIP (p. 3) INCLUDES
      • STRATEGY FORMULATION
      • STRATEGY IMPLEMENTATION
      • STRATEGY ASSESSMENT (not on p. 3)
      • STRATEGY RE-FORMULATION & IMPLEMENTATION (not p.3)
  • IF A FIRM’S STRATEGIES RESULT IN SUPERIOR PERFORMANCE, IT IS SAID TO HAVE A COMPETITIVE ADVANTAGE
terms
TERMS
  • STRATEGIC LEADERSHIP
  • STRATEGY-MAKING PROCESS
  • STRATEGY FORMULATION
  • STRATEGY IMPLEMENTATION
  • STRATEGY MEASURING, MONITORING & MANAGEMENT (not in textbook)
measuring performance
MEASURING PERFORMANCE
  • MAXIMIZING SHAREHOLDER VALUE
    • FIRST, SHAREHOLDERS PROVIDE RISK CAPITAL; MANAGERS PURSUE STRATEGIES AS THEIR AGENTS
    • SECOND, SHAREHOLDERS ARE OWNERS, AND OWNERS HAVE PROPERTY RIGHTS
  • MEASURING PROFITABILITY
    • RETURN ON INVESTED CAPITAL
    • SHORT-TERM OR LONG-TERM?
  • PROFIT GROWTH
    • INCREASE IN NET PROFITS OVER TIME
  • PROFITABILITY AND PROFIT GROWTH ARE KEY MEASURES OF STRATEGY PERFORMANCE
profitability
PROFITABILITY
  • PROFITABILITY IS THE MOST COMMON MEASURE OF STRATEGIC SUCCESS
  • PROFITABILITY MEASURES RETURNS ON INVESTED CAPITAL
  • PROFIT USUALLY MEANS BEFORE-TAX PROFITS
  • INVESTED CAPITAL = STOCKHOLDERS’ EQUITY + DEBT (LIABILITIES)
more terms
MORE TERMS
  • SUSTAINABLE COMPETITIVE ADVANTAGE
    • A COMPETITIVE ADVANTAGE IN A PARTICULAR LINE OF BUSINESS THAT LASTS & LASTS
  • STRATEGY = HOW ENABLE A BUSINESS MODEL
  • BUSINESS MODEL
    • HOW DO WE MAKE MONEY
      • SELECT CUSTOMERS
      • PRODUCT OFFERINGS (DEFINE & DIFFERENTIATE)
      • CREATE VALUE
      • ORGANIZE ACTIVITIES
      • CONFIGURE RESOURCES
choice of industry
CHOICE OF INDUSTRY
  • IN ADDITION TO BUSINESS MODEL AND ASSOCIATED STRATEGIES, CHOICE OF INDUSTRY IS HUGE
    • INDUSTRIES VARY SIGNIFICANTLY IN TERMS OF GROWTH RATES & AVE PROFITS
      • TYPICAL LOW PROFIT INDUSTRY?
        • WHY ARE PROFITS LOW IN RETAIL?
      • TYPICAL HIGH PROFIT INDUSTRY?
        • WHY ARE PROFITS HIGH IN COMPUTER SOFTWARE?
    • A FIRM’S SUCCESS DEPENDS ON
      • IN WHICH INDUSTRY/IES DOES IT COMPETE?
      • WHICH STRATEGIES IT PURSUES IN INDUSTRY
strategy stack levels of strategic management
STRATEGY STACK = LEVELS OF STRATEGIC MANAGEMENT
  • FUNCTIONAL LEVEL
    • BUSINESS FUNCTIONS COMPANYWIDE
  • BUSINESS LEVEL
    • OR BU/DIVISIONAL MANAGEMENT
      • INCLUDES BOTH PRODUCT-LEVEL AND INDUSTRY-LEVEL STRATEGIES
  • CORPORATE LEVEL
    • CEO, BOARDS, AND CORPORATE STAFF
strategy making process
STRATEGY-MAKING PROCESS
  • FORMAL PROCESS HAS 5 STEPS
    • SELECT FIRM MISSION & GOALS
    • ANALYZE EXTERNAL ENVIRONMENT
    • ANALYZE INTERNAL ENVRIRONMENT
    • SELECT STRATEGIES BASED ON ANALYSES
    • IMPLEMENT STRATEGIES
vision mission goals
VISION, MISSION & GOALS
  • VISION IS LONG-TERM
  • MISSION IS MID-TERM
  • GOALS ARE SHORT-TERM
  • RECOGNIZE THAT THESE TARGETS ARE INFLUENCED BY
    • EXTERNAL ENVIRONMENT (NATIONAL CULTURE & INSTITUTIONS)
    • CORPORATE GOVERNANCE MODELS
    • INTERNAL ENVIRONMENT (ORG. CULTURE)
figure 1 5 on p 12
FIGURE 1.5 on p. 12
  • LAYS OUT THE PLAN FOR THE BOOK AND THE COURSE
  • CHAPTERS 1-3 ARE INTERRELATED; WE GO THROUGH THEM QUICKLY
  • SEE NEW SYLLABUS; TODAY’S HANDOUT
  • CHAPTERS 4-12 ARE THE BEEF OF THE COURSE
goals
GOALS
  • PRECISE & MEASURABLE
  • ADDRESS KEY/CRITICAL ISSUES
  • CHALLENGING BUT REALISTIC
  • SPECIFY TIME PERIODS WITHIN WHICH GOALS ARE REALIZED OR, AT LEAST, MEASURED
  • STRETCH GOALS AS OPPOSED TO GOALS THAT DO NOT REQUIRE MUCH EFFORT
swot analysis
SWOT ANALYSIS
  • STRENGTHS
  • WEAKNESSES
  • OPPORTUNITIES
  • STRENGTHS
  • GIVE DIRECTION TO SELECTION & IMPLEMENTATION OF STRATEGIES
  • BUT IT’S ONLY A START
strategy as emergent process
STRATEGY AS EMERGENT PROCESS
  • STRATEGIC PLANNING & IMPLEMENTATION ARE ONGOING, NEVER ENDING
    • CONFLICT WITH FORMAL PLANNING PROCESSES?
  • UNCERTAINTY MEANS FLEXIBILITY & ADAPTABILITY ARE KEY
  • LOWER LEVEL ORGANIZATIONAL MEMBERS, MORE NUMEROUS THAN ANY, ARE THE KEY TO STRATEGIC SUCCESS
    • AUTONOMOUS ACTIONS
    • UNPLANNED RESPONSES TO UNFORESEEN CIRCUMSTANCES
    • HONDA & FORTUITOUS CIRCUMSTANCES (LUCK), 22-24
to cope with uncertainty
TO COPE WITH UNCERTAINTY
  • STRATEGY AS SCENARIO PLANNING
  • STRATEGY AND DECENTRALIZATION
    • CHAN KIM & RENEE MAUBORGNE’S PROCEDURAL JUSTICE (DISTRIBUTIVE JUSTICE)
  • STRATEGIC INTENT
    • PRAHALAD AND HAMEL’S NOTION
    • AMBITIOUS GOALS HELD BY THE ORGANIZATIONAL MAJORITY
strategic decision making
STRATEGIC DECISION MAKING
  • COGNITIVE BIASES
    • PRIOR HYPOTHESIS BIAS
    • ESCALATING COMMITMENT
    • REASONING BY ANALOGY
    • REPRESENTATIVENESS
    • ILLUSION OF CONTROL (HUBRIS)
  • GROUPTHINK
    • DEVIL’S ADVOCACY
    • DIALECTIC INQUIRY
    • ANALOGOUS PAST INITIATIVES
strategic leadership
STRATEGIC LEADERSHIP
  • VISION, ELOQUENCE & CONSISTENCY
  • ARTICULATION OF BUSINESS MODEL
  • COMMITMENT
  • BEING WELL INFORMED
  • WILLINGNESS TO DELEGATE/EMPOWER
  • ASTUTE USE OF POWER (OVER RESOURCES)
  • EMOTIONAL INTELLIGENCE
    • SELF-AWARE, SELF-REGULATE, EMPATHY, SOCIAL SKILLS, MOTIVATION BEYOND MONEY
appendix to chapt 1 enterprise valuation
APPENDIX TO CHAPT. 1ENTERPRISE VALUATION
  • ROIC
    • ROIC = NOPLAT/IC
    • NOPLAT = ?
    • IC = ?
  • GROWTH RATE OF PROFITS
    • % INCREASE IN NET OPERATING PROFITS OVER A TIME PERIOD, USUALLY YEAR-BY-YEAR
ad