Chapter_4_Strategic___management.pptVIP

Chapter4 Strategic management Learning objectives: 1. Explain the term “strategy” and “strategic management”. 2. Explain the strategic management process. 3. Describe three widely used approaches of strategy formulation. What is strategy？ Strategy A word of military origin, refers to a plan of action designed to achieve a particular goal. How a battle is fought is a matter of tactics The terms and conditions that it is fought on and whether it should be fought at all is a matter of strategy. What is strategy？ Vision 愿景 The desired or intended future state of an organization or enterprise in terms of its fundamental objective and/or strategic direction Mission 使命 The fundamental purpose of an organization or an enterprise Values 价值观 Beliefs that are shared among the stakeholders of an organization What is strategy？ A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning. Typically a business strategy will cover a period of about 3-5 years (sometimes even longer). Strategic management Strategic management Is the conduct of drafting, evaluating and implementing cross-functional decisions that will enable an organization to achieve its long-term objectives. Strategic management Environmental analysis SWOT analysis PEST analysis STEER analysis EPISTEL Establishment of an organizational direction What do we do? For whom do we do it? How do we excel? Strategy formulation Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. Concurrent with this assessment, objectives are set. These objectives should, suggest a strategic plan, which provides the details of how to achieve these objectives The strategy hierarchy Corporate strategy Business strategy Functional strategies Several widely used approac