MGT 699 Class I Murad Mithani

Optimal path: can be a result of trial and error

Series of steps that lead to the most favorable outcome Critical elements: Choices & Goal Question: In the presence of a single available path, can there be a strategy?

Process maximizing the possibility of goal achievement

Can be divided into:

Planning: goals Organizing: resources Leading: execution Controlling: evaluation

Question: Is management possible in the absence of either planning, organizing, leading or controlling?

Strategy + Management: Management of Strategy The planning, organizing, leading and controlling of a sequence of steps that leads to the most favorable outcome.
Reduces trial and error
Improves efficiency Increases the chances of success

Term inherited from military

Traditional approach: To win against competitors in the market Modern Concept: To develop a successful match between external opportunities and internal capabilities Question: Can there be more than one winner in a market?

Set of tools and approaches (SM tools)

Contingent to situations Often the primary purpose of SM tools is to train the intuition Improves with practice

Use of strategic management = Level in organization

Danger: Often these tools are forgotten by the time individuals reach the level where they are most needed

Practice in the class Read business sections in the news Discuss with friends and colleagues Stay alert to recognize new terminologies and trends (outsourcing, business process reengineering, six sigma)

Exposure to strategic management tools

Understanding of the appropriate use of SM tools Practice: to gain fluency with the terminology and mind-set necessary for strategic management

Vision: Purpose of existence (e.g. constitution)

To create a socially responsible society

Mission: What are we aiming for

Environmental education for high school students

Goals: What is the desired outcome

To ensure that all high school graduates in the US are

familiar with environmental conservation practices by 2017.

Objectives: Desired financial/non-financial outcomes leading to the attainment of the goal

Year 1: xxx, Year2: xxx, . . .

SWOT Analysis
Strengths Weaknesses

Opportunities

Threat

SWOT Analysis: McDonalds

Strengths 1. Large customer base 2. Extensive network
Opportunities Weaknesses 1. Menu not customizable 2. Limited healthy choices Threat

1. Growing population 2. More low income areas can afford products

1. Increasing competition 2. Greater consciousness of healthy foods