Академический Документы
Профессиональный Документы
Культура Документы
Framework - Strategic
Management
Ian Lee, Ph.D
Carleton University
Ottawa, Canada
ianlee@ibm.net
Stratrategic Management
Company
Performance
ID Choice of
Strategic Options Best
Open to Firm Strategy
Thinking Strategically
About Firm’s
Own Situation
1
Case Background
◆Brief factual summary
◆1/2 page or so
◆broad issue(s)
◆Economic O/T
◆Socio-cultural O/T
◆Political-legal O/T
Global Political/Legal
Competitive
Environment
Threat of new entrants
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products
Competitive rivalry
Sociocultural Technological
Macroeconomic
2
Summary
◆Most important or significant O/T
Industry Analysis
Rivalry
Among
Suppliers Buyers
Competing
Sellers
Potential
New
Entrants
3
Porter’s 5 Forces
◆Head to head competition L-M-H
◆substitutes L-M-H
◆graphically
Perceived
Quality National
Chain
Warehouse
Discount
Low
Low High
Retail Price
4
Major Competitor Analysis
◆Who are they?
Driving Forces
◆major forces of change affecting all firms
◆de-integration
◆globalization of industry
5
Overall Industry Attractiveness
◆Based on:
Value Chain
◆Apply S/W to Porter’s VC
6
Value Chain
Primary Activities and Costs
Activities,
Internally
Activities, Costs, &
Performed Buyer/User
Costs, & Margins of
Activities, Value
Margins of Foward
Costs, & Chains
Suppliers Channel
Margins
Allies
Hamel’s Framework
◆Core Competencies
◆Core Product
◆End Product
◆SCA
7
Hamel’s Competency Framework
Capabilities
Source of Source of
Teams of
Resources
Core
Competencies
Resources
Sources of
* Tangible Competitive
* Intangible Components of Advantage
Internal Analysis
Strategic Sustained
Competitiveness Competitive Foundation
Advantage of
Above-
Above-Average
Above-Average
Returns Gained through
Core Competencies
Pathway to
Rare
Costly to Imitate
Nonsubstitutable
Costly to Nonsub-
Nonsub- Competitive Performance
Valuable Rare
Imitate stitutable Consequences Implications
Below
Competitive
NO NO NO NO Average
Advantage
Returns
Competitive Average
YES NO NO YES/NO Parity Returns
Temporary Aver./Above
YES YES NO YES/NO Competitive Average
Advantage Returns
Above
YES YES YES YES SCA Average
Returns
8
Financial Statement Analysis
A. Investment Return
!EPS
!P/E
B. Financial Strength
◆Liquidity Ratios:
!Current, Acid Test
◆Solvency Ratios:
!D/A, D/E, Interest Coverage, Cash Flow/Debt
C. Management Performance
◆Profitability Ratios:
!Gross Margin
!Net Profit Margin
!Return on Assets
!Return on Equity
!Return on Capital
9
D. Resource Utilization Ratios
◆Asset Turnover
◆Payables Turnover
Mission Statement
◆Construct firm’s mission from data
◆under strategies
Corporate Objectives
◆Presently followed by firm
◆quantitative objectives
◆qualitative objectives
10
Relationships between ...
Level 1 Overall Scope Corporate Corporate
and Strategic Level Level
Corporate-Level
Mission Objectives Strategy
Mgrs
Two-Way Influence Two-Way Influence Two-Way Influence
External Environment
PEST
Five Forces Analysis Sustainable
Competitive
Advantage
Internal Environment
Resources, Capabilities and
Core Competencies
Business Level
Strategy
11
Strategic Issues
A Diversified Company
Corporate
Corporate-Level Strategy
Managers
Two-Way Influence
Business-Level Business
General Managers Strategies
Two-Way Influence
Heads of Major
Functional Areas Functional Strategies
Two-Way Influence
Plant Managers,
Lower-Level Operating Strategies
Supervisors
Corporate Issues
1. What businesses should we be in?
◆re macro, industry, firm O/T, S/W analysis
!vertical, horizontal, international diversification
!internal growth vs acquisitions vs alliances
12
Business Level Issues
1. What product markets should we be in?
!horizontal (McDonalds sells chicken)
!vertical (outsourcing)
13
Corporate Strategy Alternatives
◆List and analyze major alternatives:
Cost Uniqueness
14
Factors Shaping Strategy
Societal,
Opportunities
External Factors
Political, Industry
and
Regulatory Attractiveness
Threats
Factors
Conclusions
about Identification Crafting
How and Strategy
Company’s Strategic Situation Internal/
External
Evaluation for
of Overall
Factors Alternatives Situation
Matter
Internal
Strengths Key Shared Values
Executives’ and
and
Influences Culture
Weaknesses Internal Factors
Summary
◆Summarize major O/T in PEST
◆summarize strength of 5 forces
◆summarize industry (un)attractiveness
◆summarize VC & major competencies
◆summarize major strategic issues
◆summarize corporate & business strategies
◆summarize how strategy recommendations
solve problems
15