Beruflich Dokumente
Kultur Dokumente
11e
Ricky W. Griffin
CHAPTER 8
Managing Strategy and
Strategic Planning
PART 3
Planning and Decision Making
Strategy
Is a comprehensive plan for accomplishing an
organizations goals.
Strategic Management
Involves formulating and implementing strategies to
take advantage of business opportunities and meet
competitive challenges.
Effective Strategies
Promote superior alignment between an organization,
its environment, and its goals.
82
Components of Strategy
Components of Effective Strategies
Abercrombie and fetch Mars has adopted a GE uses its profit from US
speed in moving
electronics industry
Charters 747 to fly Products
Business-Level Strategy
The set of strategic alternatives that an organization
chooses from as it conducts business in a particular
industry or a particular market.
or
Corporate-Level Strategy
The set of strategic alternatives that an organization
chooses from as it manages its operations
simultaneously across several industries and several
markets.
84
Strategy Formulation and Implementation
Strategy Formulation
The set of processes involved in creating or
determining the organizations strategies; it focuses
on the content of strategies.
Strategy Implementation
The methods by which strategies are operationalized
or executed within the organization; it focuses on the
processes through which strategies are achieved.
85
Types of Strategies Formulation & Implementation
Deliberate Strategy
A plan, chosen and implemented to support specific
goals, that is the result of a rational, systematic, and
planned process of strategy formulation and
implementation.
Emergent Strategy
A pattern of action that develops over time in the
absence of goals or missions, or despite goals and
missions.
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8.1 SWOT Analysis
87
SWOT Analysis and Strategy
88
SWOT Analysis and Strategy (contd)
89
SWOT Analysis and Strategy (contd)
810
SWOT Analysis and Strategy (contd)
811
Formulating Business-Level Strategies
Porters Generic
Strategies
Overall cost
Differentiation Focus
leadership
strategy strategy
strategy
812
Formulating Business-Level Strategies
813
8.1 Porters Generic Strategies
814
Implementing Porters Generic Strategies
Differentiation
Marketing and sales emphasize HIGH-QUALITY, high-value
image of the organizations products or services.
Overall Cost Leadership
Marketing and sales focus on simple product attributes and how
these product attributes meet customer needs in A LOW-COST
and effective manner.
Focus
Either differentiation or cost leadership, depending on which
one is the proper basis for competing in or for a specific market
segment, product category, or group buyers.
815
Miles and Snows Strategy Types
816
Miles and Snows Strategy Types
Prospector
Encourages creativity to seek out new market opportunities and to take
risks.
Develops the flexibility to meet changing market conditions by
decentralizing its organizational structure.
Example: Amazon.com, 3M
Defender
Focuses on defending its current markets by lowering its costs and/or
improving the performance of its current products.
Example: ebay.com, BIC
817
Analyzer
Incorporates elements of both the prospector and the defender
strategies to maintain business and to be somewhat innovative.
IBM, DuPont
DuPont was founded in 1802 by leuthre Irne du Pont, using capital raised in
France and gunpowder machinery imported from France
DuPont businesses are organized into the following five categories, known as
marketing "platforms": Electronic and Communication Technologies, Performance
Materials, Coatings and Color Technologies, Safety and Protection, and
Agriculture and Nutrition.
Reactor
Has no clear strategy, reacts to changes and events.
818
8.2 The Miles and Snow Typology
819
8.2 The Product Life Cycle
High Stages
Low
Time
820
Formulating Corporate-Level Strategies
821
Corporate-Level Strategies
Strategic Choices
822
Corporate-Level Strategies
Single-Product Strategy
An organization manufactures one product or service
and sells it in a single geographic market.
Related Diversification
A strategy in which an organization operates in
several different businesses, industries, or markets
that are somehow linked.
Avoids the disadvantages and risks of a single-
product strategy.
823
Advantages of Related Diversification
824
Unrelated Diversification
825
Becoming a Diversified Firm
Diversification Alternatives
826
Becoming a Diversified Firm
827
Becoming a Diversified Firm (contd)
828
Managing Diversification
829
Managing Diversification (contd)
BCG Matrix
Evaluates a portfolio of businesses on the growth rate
of their respective markets and each businesss
relative share of its market.
Classifies the types of businesses in a diversified
firms portfolio as:
Dogs have small market shares and no growth prospects.
Cash cows have large shares of mature markets.
Question marks have small market shares in quickly
growing markets.
Stars have large shares of rapidly growing markets.
830
8.3 The BCG Matrix
High
Question
Market Growth Rate
Stars
marks
Low
831
Managing Diversification (contd)
GE Business Screen
A method of evaluating businesses in a diversified
portfolio along two dimensions, each of which
contains multiple factors:
Industry attractiveness.
Competitive position (strength) of each firm in the portfolio.
832
8.4 The GE Business Screen
Question
Industry Attractiveness
High Winner Winner
mark
Medium Average
Winner Loser
business
Profit
Low Loser Loser
producer
Competitive Position
833