Strategic Management: Creating Competitive Advantages

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Strategic ManagementCreating Competitive
Advantages

• SOM 497
• Session 3

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Richard LoyndFurniture Brands Internationalhttp
//www.furniturebrands.com/

• Formerly CEO and Chairman of INTERCO
• Currently retired but on Board of Directors for
  Furniture Brands International
• INTERCO had four primary operating companies
• Footwear manufacturing Florsheim Converse
• Furniture manufacturing Broyhill and Lane
• In an effort to more clearly define the company's
  focus, in 1994 INTERCO spun off to its interest
  in Florsheim and Converse. The company was
  renamed Furniture Brands International to embrace
  the new focus

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Richard LoyndFurniture Brands Internationalhttp
//www.furniturebrands.com/
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Strategic Management

• What is Strategic Management?
• Analysis, Decision and Action that an
  Organization Undertakes in order to Create and
  Sustain Competitive Advantage
• Strategic Managements Attributes
• Directs Organization towards goals and objectives
• Include multiple stakeholders in decision making
• Needs to incorporate short and long term
  perspectives
• Recognize trade-offs between efficiency and
  effectiveness

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The Strategic Management Process

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The Strategic Management Process

• Strategic Analysis
• Strategic Formulation
• Strategic Implementation

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The Strategic Management Process

• Strategic Analysis
• Analyzing Organization Goals And Objectives
• (Chapter 1)
• Analyzing The External Environment
• (Chapter 2)
• Assessing The Internal Environment
• (Chapter 3)
• Assessing A Firm's Intellectual Assets
• (Chapter 4)

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The Strategic Management Process

• Strategic Formulation
• Formulating Business Level Strategies
• (Chapter 5)
• Formulating Corporate Level Strategies
• (Chapter 6)
• Formulating International Level Strategies
• (Chapter 7)
• Formulating Digital Business Strategies
• (Chapter 8)

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The Strategic Management Process

• Strategic Implementation
• Implementing Strategy Strategic Control And
  Corporate Governance (Chapter 9)
• Implementing Strategy Creating Effective
  Organizational Designs (Chapter 10)
• Strategic Leadership Excellence, Ethics And
  Change
• (Chapter 11)
• Strategic Leadership Fostering Corporate
  Entrepreneurship (Chapter 12)
• Strategic Leadership Creating New Ventures
• (Chapter 13)

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The Role of Corporate Governance and Stakeholder
Management

• Who governs the corporation and determines its
  direction?
• Stockholders (owners)
• Management
• Stakeholder (anyone who is affected by the
  corporation)

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Strategic Management Perspective

• Coordinate and fit the organization to its
  environment
• Forces pushing / pulling the organization
• Globalization
• Technology
• Intellectual Capital

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Ensuring Coherence in Strategic Management
Direction

• Organizational Vision
• A goal that is massively inspiring, overarching,
  and long-term.

• Organizational Vision
• I have a dream that one day this nation will
  rise up and live out the true meaning of its
  creed We hold these truths to be self-evident,
  that all men are created equal
• Martin Luther King

• Mission Statement
• Desegregation Equality of all men and women in
  all dimensions

• Mission Statement
• Encompasses both the purpose of the company as
  well as the basis for competition and competitive
  advantages.

• Strategic Objectives
• Civil right movement actions Equal opportunity
  and representation in employment, education and
  state affairs

• Strategic Objectives
• Operationalize the mission statement. That is,
  they help to provide guidance on how the
  organization can fulfill or move toward the
  higher goals in the goal hierarchythe mission
  and vision

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In Class Team Activity

• Using
• your team work from the last class
• todays homework
• Discuss the link between
• the Strategic Management Process
• the Vision-Mission-Objectives
• Write down
• your conclusions
• do you need to change or include new questions to
  your last teamwork exercise?