STRATEGIC MANAGEMENTSESSIONS & SEMINARS

October 3 & 10 … 2013Session 1 - 4

Our goal? Learn about & practice all steps of strategic planning process

• Choose a company for which to formulate a strategic business plan• Identify / formulate:

- mission statement – framework w/in which strategy shall be crafted

- corporate vision – where do we want to be in # years - business aims -> specific objectives

• Scan the environment – carry out external, internal & industry analysis -> situational analysis

-> Internal analysis - core business & competencies, resources available, corp. structure, required inputs, corp. culture

=> IFAS (Internal Factor Analysis Summary)

Our goal? Practice all steps of strategic planning process

• Environment scanning cont’d:-> External analysis - PEST(LE) => EFAS (External Factor Analysis

Summary)

- Industry Analysis (task environment):-> Porter’s Five (Six) forces => Industry Matrix

- Situational Analysis – finding a strategic fit b/w external opportu- nities & internal strengths

- mitigating harmful effects of external threats due to internal weaknesses

=> SFAS (Strategic Factor Analysis Summary) => SWOT analysis

Strategic Management ModelExisting Existing business model

Mission, vision, goals, objectives, corp. values

SWOT => Strategic

choice

External analysis ->

opportunities, threats

Internal analysis -> strengths,

weaknessesFunctional-level strategies

Business-level strategies

Corporate-level strategies

Strategy implementation

Strategic Management Cycle

Strategic management – mgmt for distant horizons

• Series of destinations which are coming closer with time for everyone– Where was the company yesterday? (if applicable)– Where is the company now ($, ext. environment, market)? What

conditions is it in (internally)?– Where will the company be tomorrow? vs. Where can the company be

tomorrow? vs. Where is the company likely to be tomorrow – if we do a, b, c, or nothing at all?

• Nothing happens by itself =>1. => What are the business objectives? -> WHERE TO?2. => What are the best ways to achieve these objectives? ->

HOW, WHEN?3. => What resources are necessary to execute the plan? ->

w/WHAT & WHOM

Which sector? What company? … your choice

• http://www.top500.de/g0037200.htm• http://www.europages.co.uk/• http://www.hbi.cz/index.php?Lang=en• http://www.hoovers.com/• http://www.marketresearch.com/• http://www.business.com/• http://www.expats.cz/directory/#482• http://www.rusmarket.com/• http://www.thomasnet.com/• http://no1construction.com/• http://dir.yahoo.com/business_and_economy/directories/companies/

Mission statement

• Statement of purpose of existence and operations of a company w/info including:– Why are we here? -> purpose – PAST & NOW and FUTURE– Corp. aims– How do we add value to stakeholders? -> How do we fulfill our

mission?

A B CThe WHY …

Mission statement

• More specific mission statements may spell out:

– What target market we wish to serve?– With what good/service -> product?– How are we unique - w/product, w/how we operate (e.g.

environmental friendly)

• Problems, questions?

Which companies do these mission statements represent?

• "To experience the joy of advancing and applying technology for the benefit of the public“

• "To build a place where people can come to find and discover anything they might want to buy online."

• "To produce high-quality, low cost, easy to use products that incorporate high technology for the individual. We are proving that high technology does not have to be intimidating for non-computer experts.

Mission statements

Take a wild guess• BMW vs. Mercedes• McDonalds vs. KFC• IBM vs. Apple• Acer vs. Dell• Google vs. Yahoo

Mission statements – conclusion?

Questions to consider

• Why are some mission statements similar?• Why do they look so broad or general?• Would it pay to narrow a mission statement down?

Your task• For the company of your choice, formulate a mission

statement in your own words based on your current knowledge about the company.

• Identify the mission statement based on your research.

Vision statement

• http://mystrategicplan.com/resources/topic/vision-statements/

• Company image in the future– What it wants to become by a certain point in time -> where it wants

to go and how it intends to get there– May also be roughly considered as a framework for strategic planning

• The audience? …. Stakeholders & market– Employees – it provides direction and guidelines for their conduct and

should be inspirational– Banks – what they may be likely to finance– Shareholders – what projects are likely to bring more $ to them– Consumers / customers – what products to keep an eye for …

Corporate vision

McDonalds:“… be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.“

Toyota:"To become the most successful and respected lift truck company in the U.S.”

Avery Dennison :"To be recognized as the world's best coating and converting company by providing innovative decorating, information transfer and bonding solutions that enable our customers' success.“- Manufacturing pressure sensitive labeling materials, retail apparel ticketing, graphics

imaging media , office products, specialty tapes

Corporate vision

Your task

• Identify the corporate vision for your company

• Can be found directly in the vision statement or derived from a mix of information provided by top management.

• Will be subject to re-evaluation / reconsideration after SWOT analysis based on EFAS, IFAS, and SFAS are performed