Beruflich Dokumente
Kultur Dokumente
What is Strategy?
The term strategy is derived from the Greek word strategos, which means generalship- the actual direction of military force, as distinct from the policy governing its deployment. According to Alfred D Chandler , Strategy is the determination of the basic long term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.
Strategic Management: a set of managerial decisions and actions that determines the long-run performance of a corporation. Strategic management as a discipline originated in the 1950s and 60s. Although there were numerous early contributors to the literature, the most influential pioneers were Alfred D. Chandler, Philip Selznick, Igor Ansoff, and Peter Drucker. Includes: Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control
1-4
1-5
Benefits of Strategic Management: Clearer sense of strategic vision for the firm Sharper focus on what is strategically important Improved understanding of a rapidly changing environment
1-6
1-7
1-8
Execution of this strategy has included mystery shoppers and customer surveys, along with grading restaurants to help the company deliver on its people goals. New menu items like the Fruit & Walnut Salad in the United States and deli sandwiches in Australia are part of the commitment to serve high - quality products to satisfy customer demand for choice and variety. Restaurants are staying open longer, accepting credit and debit cards, enabling wireless Internet access, and even providing delivery service in parts of Asia. As part of the program, franchisees and suppliers are asked to provide their opinions and ideas on facility design, while the company benchmarks retail leaders, such as Crate & Barrel, to help produce cleaner and smarter restaurants. The company is testing small handheld devices to use on what it calls travel paths, a process for checking operational failures such as the temperature inside the refrigerators. Experiments with a new grilling concept from Sweden, which grills burgers vertically instead of horizontally, offers space - saving possibilities for the chain. Product offerings like the McCaf , a concept developed in the Australian market that provides gourmet coffee inside 500 existing restaurants, are proving to be successful. The trouble experienced in the early part of the millennium has
The trouble experienced in the early part of the millennium has abated, and executives at McDonald s have declared success after several years of progress under the Plan to WinCompany revenues are up, and the fi rm plans to remain focused on its core business. One indication of its commitment to fast food was the divestiture of its seven - year ownership stake in Chipotle Mexican Grill, a highly successful fast - casual burrito chain. With the sale of around 5 millioAttracting more customers to McDonald s remains its goal for growth. In the U.S. market, the strategy is to leverage menu innovation; in Europe, upgrading the customer experience and enhancing local relevance have driven management efforts; and the Asia/Pacifi c, Middle East, and Africa markets have focused on building sales through extended hours. The question remains whether focusing on the core business will yield maximum return. At McDonald s, the executives are betting on the core brand and hoping that this strategy will pay off. 1
1-12
1-13
Impact of E-commerce
The internet is forcing companies to transform themselves. New Channels are changing market access and branding causing the disintermediation of traditional distribution channels. The balance of power is shifting to the consumer. Companies are becoming more innovative and efficient. The pace of business is increasingly drastically. Corporations are being pushed out of the traditional boundaries. Knowledge is becoming a key asset and a source of competitive advantage.
1-15
1-16
Long-term commitment to the development and nurturing of critical resources Learning organization
1-17
creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights
1-18
1-19
1-20
1-21
1-22
1-23
1-24
1-25
Basic Elements of Strategic Management Mission- the purpose or reason for the organizations
existence
1-26
Basic Elements of Strategic Management Strategies- form a comprehensive master plan that
states how the corporation will achieve its mission and objectives Corporate (Stability, growth and retrenchment) Business ( competitive or cooperative) Functional (distinctive competence) that links the formulation of a strategy with its implementation
1-27
1-28
strategies and policies are put into action through the development of: Programs: It is a statement of the activities or steps needed to accomplish a single use plan. Budgets: It is a statement of a corporation's programs in terms of money. Procedures/Standing operating procedures: These are a system of sequential steps or techniques that describe in detail how a particular task is to be done.
1-29
corporate activities and performance results are monitored so that actual performance can be compared to desired performance
1-30
1-31
New CEO External intervention Threat of change of ownership Performance gap Strategic inflection point
1-32
What Makes a Strategic Decision? Strategic decision making focuses on the long-run
future of the organization Characteristics of strategic decision making include: Rare Consequential Directive
1-33
1-34
5. Analyze strategic (SWOT) factors 6. Generate, evaluate and select the best alternative strategy 7. Implement selected strategies 8. Evaluate implemented strategies
1-35
1-36
1-37
area or issue, that enables a systematic analysis to be made of various corporate functions and activities
1-38
1-39