strategic management the strategy process prof. dr. e.vatchkova
TRANSCRIPT
Strategic ManagementStrategic Management
The Strategy ProcessThe Strategy Process
Prof. Dr. E.VatchkovaProf. Dr. E.Vatchkova
ContentsContents
Understanding strategy Understanding strategy developmentdevelopmentInstruments for strategic analysisInstruments for strategic analysisAn overall strategic modelAn overall strategic modelTypes of strategiesTypes of strategies
UnderstandingUnderstanding strategy strategy developmentdevelopment (1) (1)
How strategy development can be seen
How strategy development process can be understood
Implications for strategy development
Understanding strategy Understanding strategy development (2)development (2)
THREE STRATEGY LENSES
1. Strategy as design2. Strategy as experience3. Strategy as ideas
How strategy development can be seen
Understanding strategy Understanding strategy development (3)development (3)
Strategic planning systemsStrategic leadership
Organizational politicsLogical incrementalism
The learning organizationImposed strategy
How strategy development process can be understood
Understanding strategy Understanding strategy development (4)development (4)
Intended and realized strategy
Strategic drift
Strategic management in uncertainty and complexity
Implications for strategy development
SWOT ANALYSIS DIAGRAMSWOT ANALYSIS DIAGRAMNumerous Environmental
Opportunities
Major Environmental
Treats
Critical
Internal
Weaknesses
Substantial
Internal
Strengths
QUADRANT || QUADRANT |
QUADRANT |VQUADRANT |||
Forces Affecting Industry CompetitionForces Affecting Industry Competition
Suppliers
Bargaining Power of Suppliers
Buyers
Bargaining Power of Buyers
Substitutes
Treat of Substitute
Products or Services
Potential Entrants
Treat of New Entrants
Industry Competitors
Rivalry among Existing Firms
Portfolio MatrixPortfolio Matrix
StarsStars QuestionQuestion
MarksMarks
Cash Cash
CowsCows
DogsDogs
High
Low
LowHigh
Relative Market Share
Market
Growth
Rate
Strategic alternative matrixStrategic alternative matrixNumerous Environmental
Opportunities
Major Environmental
Treats
Critical
Internal
Weaknesses
Substantial
Internal
Strengths
QUADRANT ||
Vertical Integration
Conglomerate Diversification
QUADRANT |
Concentration
Market Development
Product Development
Innovation
QUADRANT |V
Horizontal Integration
Concentric Diversification
Joint Venture
QUADRANT |||
Turnaround
Divestiture
Liquidation
Strategies of Portfolio TypesStrategies of Portfolio Types
StarsStars Cash Cash CowsCows
Question Question MarksMarks
DogsDogs
STRATEGYSTRATEGY Invest for Invest for rapid rapid growth, growth, convert convert to cash to cash cowcow
Channel Channel revenues revenues to stars to stars and and question question marksmarks
Evaluate Evaluate for future for future potential potential as star, as star, divest divest reminder reminder
Divest or Divest or liquidateliquidate
PORTFOLIO TYPES
Survival Strategies and Environmental Survival Strategies and Environmental ConditionsConditions
Specialists will Specialists will outperform outperform generalists. generalists. Generalists are Generalists are more likely to fail.more likely to fail.
Generalists will Generalists will outperform outperform specialists. specialists. Specialists are Specialists are more likely to fail.more likely to fail.
Stable
Unstable
HeterogeneityHomogeneity
Market Complexity
Market Stability
TypesTypes of strategies (1) of strategies (1)
Concentration – Concentration – single product in a single single product in a single market market
Market development – Market development – selling present selling present products in new marketsproducts in new markets
Product development – Product development – modification of modification of existing product or creation of a similar oneexisting product or creation of a similar one
Types of strategies (2)Types of strategies (2)
Innovation – Innovation – creation of a new product creation of a new product based on the technology of a current productbased on the technology of a current product
Horizontal integration – Horizontal integration – acquisition of acquisition of another organization in the same industry another organization in the same industry
Vertical integration – Vertical integration – acquire or create acquire or create organizations that distribute its product, organizations that distribute its product, supply materials for its product, or both supply materials for its product, or both
Types of strategies (3)Types of strategies (3)
JointJoint ventureventure – – two or more organizations two or more organizations increase their capabilitiesincrease their capabilities
Concentric DiversificationConcentric Diversification – creating or – creating or acquiring organizations that manufactures or acquiring organizations that manufactures or distribute related productsdistribute related products
Conglomerate DiversificationConglomerate Diversification – creating or – creating or acquiring another organization that acquiring another organization that manufactures or distributes unrelated manufactures or distributes unrelated productsproducts
Types of strategies (4)Types of strategies (4) Defender strategyDefender strategy – seeks or creates an – seeks or creates an
environment, that is stable, protecting the market environment, that is stable, protecting the market shareshare
Prospector strategyProspector strategy - seeks or creates an unstable - seeks or creates an unstable environment in the form of rapid change and high environment in the form of rapid change and high growth in the marketgrowth in the market
Analyzer strategyAnalyzer strategy – involves adapting solutions from – involves adapting solutions from both – the defender and prospector to the three both – the defender and prospector to the three problems – entrepreneurial, engineering and problems – entrepreneurial, engineering and administrativeadministrative
Types of strategies (5)Types of strategies (5)
Turnaround Turnaround – correct existing problems by – correct existing problems by invoking techniques for improving operational invoking techniques for improving operational efficiencyefficiency
DivestitureDivestiture – sell parts of the organization – sell parts of the organization
Liquidation Liquidation – acquire cash from the sale of – acquire cash from the sale of parts of the company which can then be parts of the company which can then be transferred to owner-stockholderstransferred to owner-stockholders
Thank you !Thank you !