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STRATEGIC MANAGEMENT

ICS 395
AJ ALMANEY, PH.D.

INFORMATION FOR
THE 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 ORGANIZATIONS INTERNAL
AND EXTERNAL ENVIRONMENTS AS
A BASIS FOR SELECTING A COURSE
OF ACTION DESIGNED TO ACHIEVE
THE ORGANIZATIONS LONG AND
SHORT-TERM OBJECTIVES.

INTERNAL ANALYSIS
IT IS THE PROCESS OF
EXAMINING THE INTERNAL
OPERATIONS OF THE
COMPANY TO IDENTIFY
THE STRENGTHS AND
WEAKNESSES

INTERNAL ANALYSIS
EXAMPLES
MICROSOFT: ORGANIZATIONAL
HEALTH INDEX
THE UNIVERSITY OF CHICAGO:
ATTENTION TO SOFT STUFF

EXTERNAL ANALYSIS
IT IS PROCESS OF
EXAMINING THE EXTERNAL
FORCES TO IDENTIFY THE
OPPORTUNITIES AND
THREATS

EXTERNAL ANALYSIS
EXAMPLES
OLD NAVY: FASTEST GROWING GAP
UNIT
JENNY MINGS ABILITY TO PREDICT
FASHION
SEVENTEEN MAGAZINE, DAUGHTERS
TRIPS TO PARIS AND LONDON

GENERAL MOTORS:
DEPAUL UNIVERSITY

BENEFIT OF
ENVIRONMENTAL
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,
FORTUNES 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
COMPANYS 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 PRESCRIPTIVE
PHASE
DEVELOPING A STRATEGY TO
IMPROVE THE ORGANIZATIONS
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
(CONTD)
STRATEGY FORMULATION

MISSION
VALUES STATEMENT
VISION
OBJECTIVES
GRAND STRATEGIES
COMPETITIVE STRATEGIES
SLOGAN

MISSION
THE ORGANIZATIONS REASON FOR
EXISTENCE
IT ANSWERS THE QUESTION: WHAT
BUSINESS ARE WE IN?

PURPOSE
THE REASON FOR THE
ORGANIZATIONS 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 OF
STARBUCKS
TO ESTABLISH STARBUCKS AS THE
PREMIER PURVEYOR OF THE FINEST
COFFEE IN THE WORLD WHILE
MAINTAINING OUR
UNCOMPROMISING PRINCIPLES AS
WE GROW

THE MISSION OF
PAPA JOHNS
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 OF
HARD 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

FORDS
GUIDING 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 JERRYS


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 JERRYS (5)
WAL-MART (6)
HOME DEPOT (8)
DISNEY (10)
MICROSOFT (15)
SOUTHWEST AIRLINES (25)

JOHNSON AND JOHNSONS


CREDO
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 JS 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 WITH
WORST REPUTATION
EXXON
K-MART

VISION
TRADITIONAL 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 VISIONAIRES
HISTORICAL ONES
THE WRIGHT BROTHERS, 1903
PHILO FARNSWORTH, 1939
EDWIN LAND, 1947
JOHN F. KENNEDY, 1961

VISIONARIES
RECENT ONES
FRED SMITH
TED TURNER
SAM WALTON
MICHAEL DELL

VISION
IT DESCRIBES WHAT THE COMPAY
ASPIRES TO BECOME

STARBUCKS
MISSION 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
(CONTD)
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 OF
HOLY 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


(CONTD)
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 A
VISION 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 OBJECTIVES
GENERAL ELECTRIC
INCREASE SALES FROM 13% TO 25%
MAKE RESOURCES AVAILABLE TO
ADHIEVE THE OBJECTIVE

STRETCH OBJECTIVES
CITIBANK
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
LOREAL 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 IS
THE 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
COMPANYS CORPORATE CULTURE,
ITS VISION, OR GRAND STRATEGY.

EXAMPLES OF
STRATEGIC 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 SLOGAN
EXAMPLES
PEPSI: THE JOY OF COLA
HOOVER: DEEP DOWN, YOU WANT
HOOVER
BAYER ASPIRING: POWERFUL PAIN
RELIEVER AND MORE
MCDONALDS: DID SOMEBODY SAY
MCDONALDS
MICROSOFT: WHERE DO YOU WANT
TO GO TODAY?

CORPORATE LEVEL
(CONTD)
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 LEVEL


MARKETING

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 PHASE


DIAGNOSE THE STRENGTHS
AND WEAKNESSES
A STRENGTH IS A FAVORABLE
CONDITION IN THE ORGANIZATIONS
INTERNAL ENVIRONMENT.
A WEAKNESS IS AN UNFAVORABLE
CONDITION IN THE ORGANIZATIONS
INTERNAL ENVIRONMENT.

STRENGTHS AND
WEAKNESSE OF THE
CORPORATE LEVEL
STREATEGIC MANAGERS:
BOARD OF DIRECTORS
TOP MANAGEMENT

STRATEGY FORMULATION:
MISSION, VISION, OBJECTIVES, GRAND
STRATEGIES, COMPETITIVE
STRATEGIES

STRENGTHS AND
WEAKNESSE OF THE
CORPORATE LEVEL
STREATEGY IMPLEMENTATION:
SELECT TWO OF THE FOLLOWING:
MOTIVATION, COMMUNICATION, CORP.
CULTURE, STRUCTURE, POLICIES,
BUDGET

STRENGTHS AND
WEAKNESSE OF THE
FUNCTIONAL LEVEL
MARKETING
FINANCE
SELECT TWO OF:
PRODUCTION, R&D, HUMAN
RESOURCES, PUBLIC AFFAIRS

IDENTIFY THE
DISTINCTIVE COMPETENCY
THAT ASPECT OF THE COMPANYS
OPERATIONS THAT GIVES IT A
SUSTAINABLE ADVANTAGE OVER
ITS COMPETITORS.

DISTINCTIVE COMPETENCY
EXAMPLES
SOUTHWEST AIRLINES
ENTERPRISE RENT A CAR

DISTINCTIVE COMPETENCY
TEST 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/THREATS
EXAMPLE
CHARLES SCHWAB VS. MERRILL
LYNCH
E- COMMERCE AND HOME DEPOT
BREAKFAST CEREAL , BAGELS, AND
MUFFINS
MIXED EFFECTS OF FORCES:
FILENS 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 OF
SYMPTOM 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 OF
STRATEGIC 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 STRATEGIC


MATCH POSITION
IT IS THE DIMENSION THAT MOST
CLOSELY DESCRIBES THE
COMPANYS 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


MARKET SHARE
STAR

QUESTION MARK

CASH COW

DOG

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
Business Strength/
Competitive Position
Leverage

Constraint

Maintenance

Vulnerability

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 NEW
MISSION STATEMENT

BUSINESS DOMAIN
PRODUCTS AND SERVICES
TARGET MARKET
DISTRIBUTION CHANNELS

WITE A NEW
VISION STATEMENT
WHAT DO YOU ASPIRE TO BECOME?
WHAT TYPE OF CORPORATE
CULTURE WOULD YOU CREATE TO
HELP YOU GET THERE?

WRITE A
VALUES 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 A
COMPETITIVE 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