38221782 19 strategic management

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Speaker : Dr. Nay Zin Latt

ChairmanBusiness Group

Hotel Group.

Venue : India

Date : 10.10.10


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Who dare to attack

Singapore

A set of tactics with long term vision,

mission and objectives


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Seeing ahead

Seeing behind

Seeing below

Seeing above

Seeing beyond

Seeing through

How we see strategy ?


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The Nature of Strategic

Management

A global perspective is a matter of survival

for businesses. E-commerce is a vital strategic

management tool.

The natural environmentis an importantstrategic issue.


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Vision & Mission

Vision is the art of seeing things invisible

What do we want to become?

Mission is your ultimate goal.

Knowing what you are doing ?

Without the Mission & Vision, it is not practicalTalking about Strategic Management


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Effective mission statements:

Arouse positive feelings and emotions

Motivate readers to action

Generate the impression that firm is successful,

has direction, and is worthy of time, support,

and investment

Mission Characteristics


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Strategic Management:

Concepts and Cases.


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Industry Analysis (EFE)

External Factor Evaluation Matrix

Summarize & evaluate:

CompetitivePoliticalCultural

TechnologicalEnvironmentalSocial

GovernmentalDemographicEconomic


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The Internal Assessment

Great spirits have always encountered violent

opposition from mediocre minds.

-- Albert Einstein


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All organizations

Strengths

Weaknesses


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Functions of Management

Planning

Stage When MostImportantFunction

Strategy Formulation

Organizing Strategy Implementation

Motivating Strategy Implementation

Staffing

Controlling

Strategy Implementation

Strategy Evaluation


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Three-Stage Process



Strategy Evaluation


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Vision & Mission

Alternative Strategies

Long-Term Objectives

Strengths & Weaknesses

Opportunities & Threats

Strategy Selection


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Issues include:

What new businesses to enter

What businesses to abandon How to allocate resources

Expand operations or diversify

Enter international markets Merge or form joint venture

Avoidance of hostile takeover


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Employee Motivation

Policies

Annual Objectives

Resource Allocation


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Action Stage of strategic management:

Most difficult stage

Mobilizing employees and managers

Interpersonal skills are critical

Consensus on pursuing goals


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Strategy Evaluation

Performance Measurement

External Review

Internal Review

Corrective Action


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Strategy Evaluation

Final stage of strategic management:

All strategies subject to future modification Success today is no guarantee of success

tomorrow

Success creates new and different problems

Complacency leads to demise


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Prime Task of Strategic Management

According to Peter Drucker

The prime task is to think through theoverall mission of a business

Ask the question:

What is our Business?


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External Opportunities and Threats

Significantly benefit or harm the organization in the future.

Include the following trends: Economic

Social

Cultural

Demographic Environmental

Political, legal, governmental

Technological

Competitive trends


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External Opportunities and Threats

Largely beyond the control of a singleorganization.

Internal Strengths and Weaknesses

- Controllable activities performedespecially well or poorly.


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Long-term objectives:

Mission-driven pursuit of specific results morethan one-year out.

Essential for organizational success

State direction

Aid in evaluation

Create synergy

Focus coordination

Basis for planning, motivating and controlling


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Strategies: Means by which long-term objectives will be

achieved.

May include: Geographic expansion, diversification

Acquisition

Product development, market penetration

Retrenchment, divestiture

Liquidation, joint venture

h i i d l


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Comprehensive Strategic Management Model

ExternalAudit

Internal

Audit

Long-TermObjectives

Generate,

Evaluate,SelectStrategies

Implement

Strategies:Mgmt Issues

Implement

Strategies:Marketing,Fin/Acct,R&D, CIS

Measure &Evaluate

Performance

Vision

&Mission


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Benefits of Strategic Management

1. Identification of opportunities

2. Objective view of management problems

3. Improved coordination and control4. Minimizes adverse conditions and changes

5. Decisions to better support objectives

6. Effective allocation of time and resources

7. Internal communication among personnel


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Benefits of Strategic Management

8. Integration of individual behaviors

9. Clarifies individual responsibilities

10.Encourages forward thinking

11.Encourages favorable attitude toward change

12.Discipline and formality to the management

of the business


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Poor reward structures

Fire-fighting Waste of time

Too expensive

Laziness Content with success

Why Some Firms Do No

Strategic Planning


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Fear of failure

Overconfidence

Prior bad experience

Self-interest

Fear of the unknown

Suspicion

Why Some Firms Do No

Strategic Planning (Contd)


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Strategies in Action

Long-Term Objectives

Types of Strategies

Integration Strategies


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Intensive Strategies

Diversification Strategies

Defensive Strategies

Means for Achieving Strategies


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Strategy Analysis And Choice


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Resource Allocation

Four types of resources

1. Financial resources

2. Physical resources

3. Human resources

4. Technological resources


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Strategy Review,

Evaluation &

Control


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Evaluation Framework

I. Review Underlying Bases

Continue present course

II. Measure Firm Performance

III.

TakeCorrective

Actions

Differences?

Differences?

Yes

NO

Yes

NO


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Dr. Nay Zin Latt

38221782 19 strategic management

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