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    Chapter 3

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    PloksesPloksesPlokses
    This document outlines the key concepts and steps in strategic management and planning. It discusses: - What strategic management is and its importance for competitive advantage. - The major components of strategic planning including conducting a SWOT analysis, developing a vision and mission, guiding principles, broad strategic objectives, and specific tactics. - How to develop each of these components, including characteristics of well-crafted visions, missions, objectives, and principles. - The strategic execution phase which involves implementing the strategic plan through monitoring progress and making adjustments.

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    Chapter 3

    Uploaded by

    PloksesPloksesPlokses
    69 views20 pages
    This document outlines the key concepts and steps in strategic management and planning. It discusses: - What strategic management is and its importance for competitive advantage. - The major components of strategic planning including conducting a SWOT analysis, developing a vision and mission, guiding principles, broad strategic objectives, and specific tactics. - How to develop each of these components, including characteristics of well-crafted visions, missions, objectives, and principles. - The strategic execution phase which involves implementing the strategic plan through monitoring progress and making adjustments.

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    This document outlines the key concepts and steps in strategic management and planning. It discusses: - What strategic management is and its importance for competitive advantage. - The major components of strategic planning including conducting a SWOT analysis, developing a vision and mission, guiding principles, broad strategic objectives, and specific tactics. - How to develop each of these components, including characteristics of well-crafted visions, missions, objectives, and principles. - The strategic execution phase which involves implementing the strategic plan through monitoring progress and making adjustments.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    69 views20 pages

    Chapter 3

    Uploaded by

    PloksesPloksesPlokses
    This document outlines the key concepts and steps in strategic management and planning. It discusses: - What strategic management is and its importance for competitive advantage. - The major components of strategic planning including conducting a SWOT analysis, developing a vision and mission, guiding principles, broad strategic objectives, and specific tactics. - How to develop each of these components, including characteristics of well-crafted visions, missions, objectives, and principles. - The strategic execution phase which involves implementing the strategic plan through monitoring progress and making adjustments.

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    Chapter Three

    Strategic Management :
    Planning and Execution for
    Competitive Advantage

    Lecture Outline

    MAJOR TOPICS
    What is Strategic Management?
    Competitive Strategy
    Strategic Planning Overview
    Conducting the SWOT Analysis
    Developing the Vision
    Developing the Mission

    What is strategic
    management?
    Strategy: an approach adopted by
    organization to ensure successful
    performance in the marketplace
    Strategic management: is
    management that bases all actions ,
    activities , and decisions on what is
    most likely - within an ethical
    framework - to ensure successful
    performance in marketplace

    Strategic Categories
    -

    Cost / leadership Strategies :


    strategies in this category seek to
    improve efficiency and control costs
    throughout an organizations activity cost chain .
    - Differentiation Strategies :
    strategies in this category seek to add
    value as defined by customers to the
    organizations product or service
    - Market-niche Strategies : strategies
    in this category focus on a narrowly
    defined segment of the market

    Competitive strategy
    To survive in a globally
    competitive marketplace ,
    organizations must adopt a
    broad strategy that gives
    them a sustainable
    competitive advantage

    Components of Strategic
    Management
    Strategic planning:
    Who are we
    Where are we going
    How will we get there
    What are our strengths and
    weaknesses
    Strategic execution:
    The implementation phase

    Strategic planning
    Involves developing a written plan that has the
    following components :
    An organization vision (like a dream of what it wants
    to became)
    An organization mission (describes who an
    organization is, what it does, and where it is
    going)
    Guiding principles (framework within which it will
    pursue its mission.)
    Broad strategic objectives (translate its mission into
    more specific terms
    Specific tactics
    projects or activities for achieving the broad
    objectives .

    Strategic Execution
    Involves implementing strategies
    set forth in:
    Strategic planning,
    Monitoring progress toward
    their achievement,
    Adjusting as necessary

    Swot analysis
    (environmental
    assessment)

    Step 1

    Develop the vision

    Step 2

    Develop the mission

    Step 3

    Develop the guiding


    principles

    Step 4

    Develop the broad


    strategic objectives

    Step 5

    Develop the specific


    tactics
    ( action plan )

    Step 6

    The strategic planning process

    Conducting the SWOT


    Analysis 1/2
    Identifying organizational
    strengths : is any characteristic or
    capability that gives the organization
    a competitive advantage
    Identifying organizational
    weaknesses: is any characteristic or
    capability that is lacking to the extent
    that it puts the organization at a
    competitive disadvantage

    Conducting the swot


    analysis 2/2
    Identifying external opportunities :
    external opportunities are opportunities in
    the organizations business environment
    that represent potential avenues for
    growth and gaining a sustainable
    competitive advantage .
    Identifying external threats: an external
    threat is a phenomenon in an organizations
    business environment that has the
    potential to put the organization at a
    competitive disadvantage

    Developing the vision

    Sets the
    tone for
    Non
    employees
    concerned
    with numbers
    Creates unity of
    purpose

    Lofty , yet
    Tangible
    Challenging
    , yet
    Briefattainable
    ,but
    comprehensiv
    e
    Easily
    Understood

    Characteristics of a well-crafted
    vision statement

    Visions
    Caterpillar : Be the global leader in
    customer value.
    Ford : Democratize the automobile
    Honda : To Be a Company that Our
    Shareholders, Customers and Society
    Want
    Pfizer: We will become the world's most
    valued company to patients, customers,
    colleagues, investors, business partners,
    and the communities where we work and
    live

    Developing the mission


    Apply the following rules when developing it :
    Describe the who , what , and where of the
    organization, making sure the who
    component describes the organization
    and its customers .
    Be brief , but comprehensive
    Choose wording that is simple , easy to
    understand , and descriptive .
    Avoid how statements . How the mission will
    be accomplished is described in the
    strategies section of the strategic plan .

    Mission Statements
    McDonald's Mission Statement: McDonald's
    mission is to be the world's best quick service
    restaurant experience. Being the best means
    providing outstanding quality, service,
    cleanliness, and value, so that we make every
    customer in every restaurant smile
    DELLs Mission Statement: "To be the most
    successful computer company in the world at
    delivering the best customer experience in
    markets we serve."

    Developing the guiding


    principles
    An organizations guiding
    principles establish the
    framework within which
    it will pursue its mission
    . Each guiding principle
    encompasses an important
    organizational value .

    Show what
    the
    organization
    wants to
    accomplish

    In accordance

    Broadly
    stated

    Characteristic
    s of broad
    strategic
    objectives

    with the
    guiding
    principles

    Specific
    enough to
    be
    measured

    Single issue
    focus

    Tied directly
    to the
    vision/missio
    n

    Characteristics of a well-written broad strategic


    objectives

    Assemble input
    Find optimum input
    (analysis)
    Resolve differences
    Finalize objectives
    (unwritten)
    Publish objectives
    (written)

    Steps in writing broad strategic objectives

    Any Questions

    HOME WORK NUMBER 2

    Give examples from the global


    market about their Missions and
    Visions , then discuss their strengths
    and weaknesses from your point of
    view .

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