strategy management第一章.pptVIP

1–* CHAPTER 1 WHAT IS STRATEGY AND WHY IS IT IMPORTANT? McGraw-Hill/Irwin Copyright ?2012 The McGraw-Hill Companies, Inc. Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. Learn the three tests of a winning strategy. WHAT DO WE MEAN BY STRATEGY ? What is our present situation? Business environment and industry conditions Firm’s financial and competitive capabilities Where do we want to go from here? Creating a vision for the firm’s future direction How are we going to get there? Crafting an action plan that will get us there Quiz – p. 4 WHAT IS STRATEGY ABOUT? Strategy is all about How: How to outcompete rivals. How to respond to economic and market conditions and growth opportunities. How to manage functional pieces of the business. How to improve the firm’s financial and market performance. Sample questions demonstrated in class - Quiz – p. 4 WHY DO STRATEGY ? A firm does strategy: To improve its financial performance. To strengthen its competitive position. To gain a sustainable competitive. advantage over its market rivals. A creative, distinctive strategy: Can yield above-average profits. Makes competition difficult for rivals. Every company must be willing and ready to modify its strategy in response to: changing market conditions, advancing technology, competitive moves, shifting buyer needs and preferences, emerging market opportunities, new ideas for improving the strategy,