Академический Документы
Профессиональный Документы
Культура Документы
Topics
Strategic Management Process
Situational Analysis
Strategy Formulation
Strategy Implementation
Cases and Strategy Exercise
Process of Planning
A lack of fit between expected
performance and existing performance
A lack of fit between the changing needs
and the existing management practices.
What should
be done
Rather than….
How do we
manage our
constraints
Strategy…….
Design of a desired
future
and effective ways of
bringing it about
Strategy…...
Fundamental pattern of
present and past resource
deployments and environmental
interactions that indicates how
the organisation will achieve
its objectives.
Shifting Focus
Internal External
focus Focus
Past
performance
current
operating
performance
Expected
performance
in a forecast
environment
Setting Directions
establishing strategic
objectives
formulating strategy
Primary
determinants External factors
of strategy
Pressures to
review the Situation analysis
present
strategy…..
Internal factors
Conclusions
concerning
implications
for strategy Identification
from &
int & ext evaluation
analysis of
Choice of
strategy
strategy
alternatives
that best
fits the
overall
situation
Environment
CHANGING POLICIES
CHANGING CUSTOMERS
CHANGING COMPETITORS
External Factors
external threats
organisational culture,
core beliefs, and business
philosophy
External
Environment
Internal
Environment
Evolution of
Planning Systems
Budgeting:
Operational control
Value System:
Meet Budget
Evolution of
Planning Systems
LRP
Effective Planning
for growth
Value System:
Predict future
Evolution of
Planning Systems
Strategic Planning
Increasing response
to emerging needs
Value System:
Think strategically
Evolution of
Planning Systems
Strategic Management
Orchestration of all
resources to create
competitive advantage
Value System:
Create future
PEST Analysis
Ansoff Model
Profit Optimization Model
BCG Growth share matrix of
Portfolio Analysis
GE/McKinsey Matrix of
Industry Attractiveness –
Business Strength Matrix
PIMS
Porter’s Industry Attractiveness
& Competitive Advantage Analysis
Porter’s Value Chain
Kenichi Ohmae’s Strategic 3 C’s
Framework (Corporation, customers,
Competitors)
Value based strategic management
SPA & Marakon Associates – using
Discounted cash flow analysis to focus
On the spread between a company’s rate
Return and its cost of capital (connecting
Competitive positioning concepts to
Shareholder value analysis)
TQM, Benchmarking,
Business Process
Reengineering
Core Competence
Balanced Scorecard
Framework –
Financial measures of
actions already taken
Stakeholders
Employees
Patients/Attendants
Doctors/Technicians
Suppliers
Politicians
Bureaucrats
Community
Funding Agencies
Unions
Competitors
S W O T
OR
T W S O?
Define capabilities:
Strengths
Weaknesses
Analyze Environment
Opportunities
Identify an Threats
opportunity
that requires
your distinctive
capabilities to exploit
The 7S model
super-ordinate goals
strategies
structure
systems
staff
skills
shared values
Business Mission
What do we do best?
What then?
scenarios & consequences
Strategy Selection
Criteria
• Is it responsive to the
environment?
• Does it conform to your
mission and goals?
• Is it feasible given the
resources available?
Types of strategies
Integrative
Forward
Backward
Horizontal
Types of strategies
Intensive
Market penetration
Market Development
Product Development
Types of strategies
Diversification
Concentric
Conglomerate
Horizontal
Types of strategies
Others
Joint Venture
Retrenchment
Divestment
Liquidation
Combination
No Strategy
Tests to Evaluate
A Future Strategy
I. Internally Focussed:
Resources & Internal
1. Resources Stakeholders
Resource Adequacy/Feasibility
--Does the company have
resources to expand?
--Can it afford the risks of
strategy?
I. Internally Focussed:
Resources & Internal
1. Resources Stakeholders
Flexibility
--Will the commitment preserve
the company’s flexibility?
--Are the risks taken warranted
by the rewards expected?
--Can the decision be reversed
and at what cost?
I. Internally Focussed:
Resources & Internal
1. Resources Stakeholders
Controllability
--Can the company afford to
succeed?
--Does management know how to
gauge whether the strategy is
working?
I. Internally Focussed:
Resources & Internal
Stakeholders
1. Resources
Controllability
--What problems will be
resolved? What will be
created?
I. Internally Focussed:
Resources & Internal
Stakeholders
2. Internal Stakeholders
Stakeholder Adequacy
--Will it satisfy internal
stakeholder objectives?
I. Internally Focussed:
Resources & Internal
Stakeholders
2. Internal Stakeholders
Value Compatibility
--Will the organisation’s
critical stakeholders
go along with it?
I. Internally Focussed:
Resources & Internal
Stakeholders
2. Internal Stakeholders
Competitive Advantage
--does it preserve the firm’s
distinctive competence?
--Is it robust?
II. Externally Focussed:
Environment & External
Stakeholders
1. Environment
Conventional Wisdom
--Does the strategy violate
conventional wisdom?
--How do you know it will work?
II. Externally Focussed:
Environment & External
Stakeholders
1. Environment
Contingency Tests
--What assumptions are implicit
in the strategy? Are they
viable--does the success of the
strategy depend upon an
economic upswing/
II. Externally Focussed:
Environment & External
Stakeholders
2. External Stakeholders
Reactions
--Does the strategy assume that
the competitors are smart?
--Does it allow for intelligent
reactions by the competitors?
Does it allow for irrational or
emotional reaction by them?
II. Externally Focussed:
Environment & External
Stakeholders
2. External Stakeholders
Vulnerability
--What are the strategy’s
vulnerabilities?
--Could it be caught in
cross-impact?
III. The Ultimate Test
• LACK OF CONSENSUS/COMMITMENT TO
STRATEGY
• EXIT/ABSENCE OF LEADER
• RESOURCE MISMATCH
• ORGANIZATIONAL BUREAUCRACY
problem classification
• organisation wide problem
• departmental problem
• physical, technological,
quantitative problem
• human, organisation related
problem
• problem amenable to solution
• problem not amenable to
solution
Prioritise
implementation
strategies
in order of
importance
What if? Scenarios
Do what? Options
So what? Consequences
What do we want?
Consequences
Options
What do we know?
Scenarios
Major problem in
implementation
is that the intent of
the growth strategy
is not communicated
properly
to the units.
Resource allocation
Structure fitting
Systems design, etc.
Performance
appraisal
Goal setting
Critical
success factors
Action
plans
Check
list
• use an interventionistic
approach to communicate
an environment of
participant involvement
aimed at problem
avoidance
Check
list