Strategic Management Model

Business Ethics/Social Responsibility/Environmental Sustainability

Perform External Audit

Develop Vision & Mission

Establish Long-Term Objectives

Generate, Evaluate & Select Strategies

Implement Strategies

Evaluate Performance

Perform Internal Audit

Business Ethics/Social Responsibility/Environmental Sustainability

STRATEGY

Long Term-Objectives
- Performance goals of an organization, intended to be achieved over a period of five years or more.
http://www.businessdictionary.com/definition/long-term-objectives.html#ixzz2st1oOoJr

- Represents the results expected from pursuing certain strategies

THIRTEENTH EDITION : Strategic Management Concepts & Cases by Fred David

Characteristics of Good Objectives

CONGRUENT ACROSS
DEPARTMENTS

OBTAINABLE

MEASURABLE

REALISTIC

SPECIFIC

ACHIEVABLE

UNDERSTANTABLE

TIMELY
HEIRARCHICAL

CHALLENGING

Examples of Long-Term Objectives:

Grow annuity revenue between 46% in the Server and Tools Business segment. Target overall gross margin increases of 1% fueled in part by improved operational efficiency. Operating expenses are targeted at $26.1 $26.3 billion for the year with projected capital spending at $2 billion. Increase same store sales by 24%. Expand credit revenue by $25$35 million while also reducing associated expenses by $10$20 million as a result of lower bad debt expenses.

Reinvest $2.4 billion in the business; 50% of this will be spent on opening 1,000 new restaurants around the world, including roughly 500 in Asia Pacific, 250 in Europe, and 150 in the U.S.

STRATEGY
-Systematic process of achieving long term goals

Examples of Objectives:

Example Strategy:

1. Increase Awareness of our website to Target Audience (TA) by 100% by the end of the year 2. Increase Traffic To Website by 50% compared with last year 3. Increase Repeat Purchases by 10% compared with last year 4. Increase Average Order Value from 50 to 55 this month

1. Engage Target Audience at key touch points in their day when receptive to brand messaging 2. Drive traffic from new unique visitors to your website 3. Encourage Repeat Purchases from Existing Customers 4. Increase Average Order Value from within the cart

COMPARING MILITARY & BUSINESS STRATEGY

A key aim of both business and military strategy is "to gain competitive advantage."

The element of surprise provides great competitive advantages in both

COMPARING MILITARY & BUSINESS STRATEGY

Business

Competition

Military

Conflict

COMPARING MILITARY & BUSINESS STRATEGY

Strategies Vs. Tactics

http://charliesaidthat.com/digital/digital/difference-between-marketing-strategy-vs-tactics-an-example/

Strategies Vs. Tactics

http://taylorpearson.me/have-a-strategy/

Strategies Vs. Tactics

Strategies are long term plans of action designed to achieve higher-level goals. Strategies guide tactical decisions but would be useless in actually getting things done without tactics. Tactics are more immediate actions taken with the resources you have at hand.

Tactics are essential on-the- ground types of decisions that give more specific instructions than strategies.

Ex. Drive traffic from new unique visitors to your website

Ex. Run Facebook Advertising at lunchtimes based around similar interests

Strategies Vs. Tactics

Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. - Sun Tzu
http://taylorpearson.me/have-a-strategy/#sthash.0lxJbZmf.dpuf

Major Long-Term Objective: Increase sales revenue by 25% by the End of the Year Specific Objectives Increase Awareness of our website to Target Audience (TA) by 100% by the end of the year Increase Traffic To Website by 50% compared with last year Increase Repeat Purchases by 10% compared with last year Increase Average Order Value from 50 to 55 this month Example Strategy: 1. Engage Target Audience at key touch points in their day when receptive to brand messaging 2. Drive traffic from new unique visitors to your website 3. Encourage Repeat Purchases from Existing Customers 4. Increase Average Order Value from

Example Tactics: 1a. Run TV ads targeted at TA in the middle of the day 1b. Run Facebook Advertising at lunchtimes based around similar interests 1c. Acquire Coverage in National Magazines targeted at TA using PR 1d. Run Online Banner Advertising on XYZ sites targeted at TA in the evenings 1e. Sponsor Local Sporting Events 1f. Create content around the shopping & lifestyle needs of your customers 2a. Ensure website URL is featured in TV ads 2b. Add URL to Twitter Bio 2c. Start 10+ conversations per day with TA on Twitter

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