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SESSION: 2010-2012
SEMESTER: Final
Program: Ms.c(IT)
Presented By: Khizer Abbas
Chapter 8
STRATEGIC MANAGEMENT
Strategic Management
Step 1: Identifying the Organizations Current Mission, Objectives, and Strategies Mission statement of the purpose of an organization important in profit and not-for-profit organizations important to identify the goals currently in place and the strategies currently being pursued
Step 2: Analyzing the Environment successful strategies are aligned with the environment examine both the specific and general environments to determine what trends and changes are occurring Step 3. Identifying Opportunities and Threats opportunities - positive trends in the external environmental threats - negative trends in the external environment
Step 4: Analyzing the Organizations Resources and Capabilities examine the inside of the organization available resources and capabilities always constrain the organization in some way core competencies - major value-creating skills, capabilities and resources that determine the organizations competitive weapons
Step 5: Identifying Strengths and Weaknesses Strengths - activities the organization does well or any unique resource Weaknesses - activities the organization does not do well or resources it needs but does not possess organizations culture has its strengths and weaknesses SWOT analysis - analysis of the organizations strengths, weaknesses, opportunities, and threats
Step 6: Formulating Strategies Require strategies at the corporate, business, and functional levels of the organization Strategy formulation follows the decision-making process Step 7: Implementing Strategies A strategy is only as good as its implementation Step 8: Evaluating Results Control process to determine the effectiveness of a strategy
Corporate-level Strategy (continued) Grand Strategy - Stability no significant change is proposed organizations performance is satisfactory environment appears to be stable and unchanging
Corporate-Level Strategy (continued) Corporate Portfolio Analysis - used when corporate strategy involves a number of business Boston Consulting Group (BCG) matrix-- strategy tool that guides resource allocation decisions on basis of market share and growth rate of SBU
Question Marks
Dogs
Corporate-Level Strategy (continued) BCG matrix (continued) strategic implications of the matrix cash cows - milk stars - require heavy investment question marks - attractive but hold a small market share dogs - sold off or liquidated
Industry Competitors
Threat of Substitutes
2003 Pearson Education Canada Inc.
TYPES OF ORGANIZATIONAL STRATEGIES (continued) Business-Level Strategy (continued) Competitive strategies (continued) Porters three generic strategies cost leadership - goal is to become the lowestcost producer in the industry differentiation - offer unique products that are widely valued by customers focus - aims at a cost advantage or differentiation advantage in a narrow segment
TYPES OF ORGANIZATIONAL STRATEGIES (continued) Functional-Level Strategy used to support the business-level strategy creates an appropriate supporting role for each functional area of the organization
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