Chapter 6 Strategic Management and Entrepreneurship - PowerPoint PPT Presentation

1 / 32
About This Presentation
Title:

Chapter 6 Strategic Management and Entrepreneurship

Description:

the process of formulating and implementing strategies to advance an ... skunk works. groups of employees work in a creative setting ... – PowerPoint PPT presentation

Number of Views:746
Avg rating:3.0/5.0
Slides: 33
Provided by: paul447
Category:

less

Transcript and Presenter's Notes

Title: Chapter 6 Strategic Management and Entrepreneurship


1
Chapter 6Strategic Management and
Entrepreneurship
  • Planning Ahead
  • What is strategic management?
  • How are strategies formulated?
  • How are strategies implemented?
  • What is entrepreneurship?

2
Strategy and Competitive Advantage
  • Strategy
  • an action focus that links an organization to its
    environment
  • comprehensive plan that sets direction and guides
    allocation of resources to achieve long term
    objectives

3
Strategy and Competitive Advantage
  • The Strategic Management Process
  • the process of formulating and implementing
    strategies to advance an organizations mission
    and objectives and secure competitive advantage

4
Strategy and Competitive Advantage
  • The Strategic Management Process
  • Strategy formulation (Drucker)
  • What is our business mission?
  • Who are our customers?
  • What do our customers consider value?
  • What have been our results?
  • What is our plan?

5
Strategy and Competitive Advantage
  • The Strategic Management Process
  • Strategy implementation
  • putting plans into action

6
Strategy and Competitive Advantage
  • Values, Purpose, Mission, Values, and Objectives
  • Core values
  • broad beliefs about what is/is not appropriate
  • Corporate Culture
  • predominant values for organization as a whole

7
Strategy and Competitive Advantage
  • Mission statement
  • domain
  • customers
  • products and/or services
  • location
  • philosophy

8
Strategy and Competitive Advantage
  • Analysis of Stakeholders
  • Strategic constituencies analysis
  • assessment of how well the organization serves
    stakeholders

9
Strategy and Competitive Advantage
  • Operating Objectives
  • direct activities toward key and specific results
  • examples include
  • profitability
  • market share
  • human talent
  • financial health
  • cost efficiency
  • product quality
  • innovation
  • social responsibility

10
Strategy and Competitive Advantage
  • SWOT analysis
  • Assessing organizational Strengths and Weaknesses
    within SWOT analysis
  • Identifying core competencies
  • Technology
  • Human resources
  • Manufacturing approaches
  • Management talent
  • Financial Strength

11
Strategy and Competitive Advantage
  • Analysis of industry and environment
  • Assessing Opportunities and Threats within SWOT
    analysis
  • Assessment of actual and future environmental
    conditions
  • Macro environment
  • Industry environment
  • Unattractive industry
  • Attractive industry

12
Levels and Types of Strategies
  • Levels of Strategy
  • Corporate strategydirects the organization as a
    whole toward sustainable competitive advantage.
  • Business strategysets the strategic direction
    for a single business unit or product line.
  • Functional strategyguides the use of resources
    to implement business strategy, focusing on
    activities within a specific area of operations.

13
Levels and Types of Strategies
  • Growth and diversification strategies
  • Growth strategiesseek an increase in size and
    the expansion of current operations.
  • Concentration strategiesgrowth occurs through
    expansion in the same business area.
  • Diversification strategiesgrowth occurs through
    acquisition of or investment in new and/or
    different business areas.

14
Levels and Types of Strategies
  • Retrenchment strategies
  • Reduce the scale of operations in order to gain
    efficiency and improve performance
  • Turnaround downsizing to reduce costs and
    restructuring to improve efficiency
  • Divestiture selling parts of the organization
    to improve efficiency.
  • Liquidation closing operations through complete
    sale of assets or declaration of bankruptcy.

15
Levels and Types of Strategies
  • Stability strategies
  • Maintain the present course of action without
    major changes.

16
Levels and Types of Strategies
  • Cooperative strategies
  • Strategic alliancestwo or more organizations
    partner to pursue an area of mutual interest.
  • Types of strategic alliances
  • Outsourcing alliances
  • Supplier alliances
  • Distribution alliances

17
Levels and Types of Strategies
  • E-business strategies
  • The strategic use of the Internet to gain
    competitive advantage
  • Popular e-business strategies
  • Business-to-business (B2B) strategies
  • Business-to-customer (B2C) strategies

18
Strategy Formulation
  • Opportunities for Competitive Advantage
  • Cost and quality
  • Knowledge and timing
  • Barriers to entry
  • Financial resources

19
Strategy Formulation
  • Portfolio Planning
  • investing scarce organizational resources among
    competing business opportunities

20
Strategy Formulation
  • Boston Consulting Group (BCG) Matrix
  • ties strategy formulation to analysis of business
    opportunities according to market growth rate and
    market share
  • stars
  • cash cows
  • question marks
  • dogs

21
Strategy Formulation
  • Porters Competitive Strategies Model
  • new competitors
  • bargaining power of suppliers
  • bargaining power of customers
  • threats of substitute products and services
  • competition between existing companies

22
Strategy Formulation
  • Porters Competitive Strategies Model
  • Strategies to Gain Competitive Advantage
  • Differentiation strategy
  • Cost leadership strategy
  • Focused differentiation strategy
  • Focused cost leadership strategy

23
Strategy Formulation
  • Product Life Cycles
  • A series of stages that a product or service goes
    through during the life of its marketability
  • Stages of the life cycle
  • Introduction
  • Growth
  • Maturity
  • Decline

24
Strategy Formulation
  • Product life cycle
  • Introduction and growth stages
  • Use differentiation and prospector strategies
  • Maturity stage
  • Use focus and/or cost leadership strategies
  • Decline stage
  • Use defender or analyzer strategies

25
Strategy Formulation
  • Emergent Strategies
  • develop progressively over time
  • Logical incrementalism
  • strategies that develop as modest adjustments to
    past patterns

26
Strategy Implementation
  • Management Practices and Systems
  • Strategic management failures
  • inadequate attention to major strategic planning
    elements
  • poor handling of strategy implementation

27
Strategy Implementation
  • Leadership and Top Management Teams
  • effective strategy implementation depends on all
    managers
  • Corporate Governance
  • boards of directors
  • inside
  • outside

28
Strategy and Entrepreneurship
  • Who are the Entrepreneurs?
  • Risk-taking individuals who pursue opportunities
    that others do not see

29
Strategy and Entrepreneurship
  • Typical Characteristics of Entrepreneurs
  • internal focus of control
  • high energy level
  • high need for achievement
  • tolerance for ambiguity
  • self-confidence
  • action oriented

30
Strategy and Entrepreneurship
  • Entrepreneurship and Small Business
  • Small business
  • fewer than 500 employees
  • most common type of business in the U.S.
  • high failure rate

31
Strategy and Entrepreneurship
  • Small Business Development
  • Small Business Administration (SBA)
  • Small Business Development Centers
  • offer guidance on how to run a business
    successfully

32
Strategy and Entrepreneurship
  • Entrepreneurship and Large Enterprises
  • intrapreneurship
  • entrepreneurial behavior within large
    organizations
  • skunk works
  • groups of employees work in a creative setting
Write a Comment
User Comments (0)
About PowerShow.com