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The Strategy
Making Process
Maybe I cant outrun that bear, but I surely can outrun you
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Employees Training
Economies of scale
Multidivisional companies:
A company that competes in several different
businesses and has created a separate, self-
contained division to manage each of them.
e.g. PGC, Super Asia, Master, etc.
In multidivisional companies, three level of management
Corporate level
Business level
Functional level
Long-Term Objectives
Alternative Strategies
Strategy Selection
Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
Strategy Evaluation
Internal Review
External Review
Performance Metrics
Corrective Actions
2012 South-Western, a part of Cengage Learning
Pitfalls of Planning
The formal planning model does not consider:
The unpredictability of the real world
Decentralized Planning
Incorporating all managers in planning, not
just the top level managers
Strategic Intent
Building new resources and capabilities to
create and exploit future opportunities
Financial Benefits
Improvement in sales
Improvement in profitability
Productivity improvement
Benefits of Strategic
Management
Non-Financial Benefits