Copyright©2002JASONStrategy-01-75-4-4-A|StrategicManagementCopyright©2002JASONStrategy-01-75-4-4-A|Agenda■Strategy&StrategyManagement■EnvironmentalConditions■InternalAnalysis■StrategicChoice■StrategySelectionCriteriaCopyright©2002JASONStrategy-01-75-4-4-A|Strategy&StrategyManagementCopyright©2002JASONStrategy-01-75-4-4-A|StrategyaDefinitionStrategyisthedirectionandscopeofanorganizationoverthelongterm;whichachievesadvantagefortheorganizationthroughitsconfigurationofresourcesWithinchangingenvironment,tomeettheneedsofmarketsandtofulfilstakeholderexpectation(Johnson&Scholes,1999)Copyright©2002JASONStrategy-01-75-4-4-A|StrategyVsFunctionalManagementFocusFunctionalStrategic■Shortterm■Longterm■Partsoforganization■Wholeorganization■Efficiency■Effectiveness■Cost/profitmeasures■NPD/MarketshareLevelsofStrategy■CorporateLevelstrategy■BusinessLevelStrategy■Functional/OperationalStrategyCopyright©2002JASONStrategy-01-75-4-4-A|LevelsofStrategyF/OSBSCS■Whereisorganizationgoing■Market,CompetitiveAdvantage■Resource,ImplementDoarightthingtoDoathingright!Copyright©2002JASONStrategy-01-75-4-4-A|PatternsofStrategyDevelopmentContinuityIncrementalFluxTransformationalEnvironmentCopyright©2002JASONStrategy-01-75-4-4-A|TheRelationshipBetweenAnalysis,ChoiceandImplementationImplementAnalysisChoiceStrategyemergesfromTheinteractionofallThreeelementsCopyright©2002JASONStrategy-01-75-4-4-A|TheStrategyProcess:StagesAnalysis■Missionandgoals■Environmentalanalysis■ResourceanalysisChoice■Levelandstrategy,Basesofstrategicchoices■Generatingoptions■Evaluatingoptions■StrategydevelopmentprocessImplementation■Organizationstructureissue■Changemanagementissue■Cultureissue■Rewordsystem123Copyright©2002JASONStrategy-01-75-4-4-A|EnvironmentalConditionsHistoricalanalysisForecastingDecentralizationoforganizationsScenarioplanningExperienceandLearningSimpleComplexStaticDynamicCopyright©2002JASONStrategy-01-75-4-4-A|EnvironmentalConditionsUnderstandingtheNatureoftheEnvironment■ReasonofEnvironmentAnalysis■EnvironmentalUncertainty■SimpleandStaticCondition■DynamicIssue■ComplexIssue■CaseAnalysis:ScenarioPlanning■ReviewCopyright©2002JASONStrategy-01-75-4-4-A|EnvironmentalConditionsPESTANALYSISPoliticalfactorsSocialculturalfactorsEconomicfactorsTechnologicalCopyright©2002JASONStrategy-01-75-4-4-A|EnvironmentalConditionsGlobalMarketConvergenceGlobalstrategyCompetitionglobalCostadvantagesCopyright©2002JASONStrategy-01-75-4-4-A|EnvironmentalConditionsCase:FaxIndustryHighpotentialimpactHighuncertaintyABCAThedevelopmentofemailBCostumersperceptionsoffaxcomparedwithemailCCostoffaxandrawmaterialsCopyright©2002JASONStrategy-01-75-4-4-A|CompetitorsAnalysisAlldifferintermof:■Number&sizeofcompetitors■Natureoftheproduct■Sellerscontrolofprice■Easeofentryintomarket■Objectives:canaffectthebehaviorinthemarketplace&mayhavelongtermimplicationfore.g.Cost&price■Resource:strengths&weakness■Current&possiblefuturestrategy:assesswhatcompetitorsareconcentratingontheimplicationCopyright©2002JASONStrategy-01-75-4-4-A|FiveForcesAnalysisCompetitiveRivalryPotentialentrantsBuyersSubstitutesSuppliers(Source:M.E.Porter,CompetitiveStrategy,FreePress,1980,p.4)Copyright©2002JASONStrategy-01-75-4-4-A|BarrierMatrixLowProfitStableLowProfitHighriskHighProfitStableHighProfitHighriskLowHighLowHighEnterBarriersExistBarriersCopyright©2002JASONStrategy-01-75-4-4-A|CompetitorsAnalysisCompetitorsABCDProductGoalsResourceStrategyStrengthWeaknessCopyright©2002JASONStrategy-01-75-4-4-A|MarketingAnalysisMultisegmentStrategyFirmPaPbPcPdPePfPgPhPiPsPmPkSegment1Segment2Segment3MarketingmixTargetMarketsCopyright©2002JASONStrategy-01-75-4-4-A|MarketingAnalysisDevelopmentGrowthMaturityDeclineLifeCycleModel■Fewtrialofearlyadopters■FewCompetitors■Growingadopters■FightforsharesUndifferentiatedproducts■Repeatpurchase■KeepshareDiff-Icultiesingainingsharescostisimportant■Drop-offinusage■Existofsomecompetitors(John&Scholes,1999)Copyright©2002JASONStrategy-01-75-4-4-A|MarketingResearchResearchModelSituationanalysisPresentingfindingsPreliminaryinvestigationAnalysisandInterpretationDefiningspecificobjectiveDevelopingtheresearchdesignCopyright©2002JASONStrategy-01-75-4-4-A|MarketingResearchSourceInternalPrimarySecondaryExternalQuantitativeQualitative■AccountsSales&Customerrecord■Publicationreportperiodicals■ObservationSurveyExperimentation■DepthInterviewsetc.Copyright©2002JASONStrategy-01-75-4-4-A|InternalResourceAnalysisPeopleIssue■Employeerelation■Performance■SkillsLevel■CultureFinancialPerformance■Returnoncapital■Coststructure■Liquidity■Profit/margin■Needaclearpictureoftheorganizationscurrentposition■Whatarethecurrentresourcebothtangibleandintangibleandhowwelltheybeingutilized■IncludedanassessmentofpastAchievementsandfailureswhysuccess/failure■WhataretheconstraintsfacingtheorganizationCopyright©2002JASONStrategy-01-75-4-4-A|StrategicCapacityModelResourceCompetence■Inseparateactivities■ThroughLinkingactivitiesCoreCompetence■Tooutperformcompetition■TocreatenewopportunitiesAssessingbalance■Resource■Competence■BusinessunitsCoreCompeten