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Understand the hierarchy of the Firms strategies Understand why the initiatives at various organizational levels must be coordinated to achieve company strategic targets. Be aware of that crafting a strategy is a task for a companys entire management team. See that a strategy is a collection of strategic initiatives and actions taken at many organizational levels. Understand the role and responsibility of the board of directors in the strategic management process.
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3. 4.
5.
If you dont know where you are going, any road will take you there.
Cheshire Cat to Alice
Lewis Carroll, Alice in Wonderland
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capitalize on attractive opportunities to grow the business How best to respond to changing economic and market conditions How to manage each functional piece of the business How to achieve the companys performance targets.
And this stitching together must result in a coherent and coordinated game plan for running the firm successfully.
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that:
Involves managers from various
firms strategy is crafted into a collection of initiatives undertaken by managers at all levels in the organizational hierarchy
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Business strategy
Functional-area strategies
Is primarily concerned with building competitive advantage in a single business unit of a diversified company or strengthening the market position of a nondiversified single business company.
Are concerned with the strategies specifically related to particular functions or processes within a business (marketing strategy, production strategy, finance strategy, customer service strategy, product development strategy, and human resources strategy). Are relatively narrow strategic initiatives and approaches of limited scope for managing key operating units (plants, distribution centers, geographic units) and specific operating activities such as materials purchasing or Internet sales.
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Operating strategies
StrategyMaking Hierarchy
Figure 2.2
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accommodate more appealing lower-level strategy ideas and initiatives as they arise.
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performing core business strategy-supportive initiatives . Is the most demanding and time-consuming part of the strategy management process.
competencies and competitive capabilities Create and nurture a strategy-supportive work climate that motivates people to meet or beat performance targets. To put the strategy in place and execute it proficiently on many organizational fronts.
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Staffing needed skills and expertise to build and strengthen strategy-supportive competencies and competitive capabilities. Allocating ample resources to activities critical to strategic success. Ensuring policies and procedures facilitate rather than impede execution. Using best practices to perform core business activities and push for continuous improvement. Installing information and operating systems that enable personnel to better carry out their strategic roles. Tying rewards and incentives directly to the achievement of performance objectives and good strategy execution. Creating a culture and work climate conducive to the strategy. Exerting the leadership needed to keep improving on how the strategy is being executed.
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execution and making adjustments that will move the firm closer to operating excellence.
Deciding whether or not to continue or change the
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change as needed:
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Strategy execution
Is a job for the entire management team and requires diligent
who can push needed changes in their units and consistently deliver good results.
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Corporate Governance:
Role of the Board of Directors in Strategy-Making & Strategy-Executing
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A firm with an unshakableoften obsessive commitment to achieving its strategic intent typically:
Goes all out to marshal resources and capabilities to close in on its
strategic target. Crafts potent offensive strategies to throw rivals off-balance, put them on the defensive, and force them into a game of catch-up. Tries to alter the market contest and tilt the rules for competing in its favor. Rallies its personnel in efforts to make its strategic intent a reality.
Firms with strategic intent are thus a force to be reckoned with and often are more formidable competitors than rivals having modest strategic objectives and market ambitions.
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Final Thought for the Glo-bus Simulation: Lead the Development of Better Competitive Capabilities
Lead
efforts to strengthen existing competitive capabilities Anticipate changes in industry environment Proactively build competencies and capabilities that hold promise for building a stronger competitive edge
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Team Exercise
Convert
your strategic vision into a set of initiatives required to implement the vision. the initiatives into specific actions/decisions you will make in the practice round.
Transform
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