Professional Documents
Culture Documents
Strategic Management
Opening case
Wal-mart
Strategy is
A plan / course of action leading to a direction. It is related to companys activities. It deals with uncertain future. It depends on vision / mission of the company to reach its current position.
A Company's strategy is management action plan for running the business and conducting operations. It consists of the competitive moves And business approaches that mangers are employing to grow the business, Attract and please customers, Compete successfully, Conduct operations and Achieve the targeted levels of organizational performance.
BUSINESS STRATEGY
Business level strategy is lower-level than corporate strategy that applies to a single division or business unit. strategic issues include pricing and marketing strategies. Business-level strategies are normally decided by midlevel managers who are responsible for the business unit or division.
Corporate-Level Strategy
Corporate strategy refers to all strategic decisions that affect the firm as a whole. Often, corporate-level strategies will have an affect on several business units. Corporate strategic issues include the financial structure of the firm, mergers and acquisitions, and the allocation of resources to individual business units.
Steve Jobs of Apple will decide the corporate strategy of his companies SBU's by deciding which area should receive the most attention. From this, the heads of these SBU's which range from computers, phones, to MP3 players, will then decide the business strategy for each product, they will have complete authority within their own unit (own product) while those involved in corporate strategy have authority over all business units
Aishah radiyullahu anha narrets that rasulullah sallallahu alaihi wasallam ordered us to treat people according to their status.
A strategic vision concerns a firms future business path -- where we are going
Current product and service offerings Customer needs being served Technological and business capabilities
Markets to be pursued Future technologyproduct-customer focus Kind of company that management is trying to create
Intel
Our vision: Getting to a billion connected computers worldwide, millions of servers, and trillions of dollars of e-commerce. Intels core mission is being the building block supplier to the Internet economy and spurring efforts to make the Internet more useful. Being
connected is now at the center of peoples computing experience. We are helping to expand the capabilities of the PC platform and the Internet.
Step 3: Conducting an internal analysis Assessing organizational resources, capabilities, activities and culture: Strengths (core competencies) create value for the customer and strengthen the competitive position of the firm. Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage.
Step 6: Evaluating results How effective have strategies been? What adjustments, if any, are necessary?
by CEO and Board of Directors Horizon: long term Focus on domain selection:
Functional
What business sectors to enter/invest ? How should the resources be allocated across the businesses ?
Corporate
Business Functional
Short Term
Focus on functional efficiency
Annual objectives & decisions within functional areas Improving efficiency within functional areas