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Strategy mgm
This document discusses strategic management concepts including strategy, strategic intent, strategic fit, approaches to competitive innovation, and vision and mission statements. It provides definitions and components of strategy, describes strategic intent as an ambitious and compelling dream, and strategic fit as aligning current capabilities with opportunities. It outlines approaches to competitive innovation such as building advantage layers and changing terms of engagement. Finally, it discusses the benefits of clear vision and mission statements, components of effective mission statements, and evaluates example mission statements.
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Strategy mgm
- 1. AMITY GLOBAL BUSINESSSCHOOL Strategy Intent ,Business visions and missions
- 2. WHAT IS STRATEGY? •Where is the business trying to get to in the long- term?Direction • Which markets should a business compete in and what kind of activities are involved in such markets? Markets and Scope • How can the business perform better than the competition?Advantage • What resources are required in order to be able to compete?Resources • What external, environmental factors affect the businesses' ability to compete?Environment • What are the values and expectations of those who have power in and around the business?Stakeholders
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- 4. STRATEGIC FIT MODEL Strategic Mindsets STRATEGICINTENT MODEL Strategic thinking is driven by the match between current capabilities and existing opportunities Searching for sustainable advantages Finding protected niches Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision Finding ways to leverage resources Outpacing competitors in building new advantages Making new industry rules
- 5. APPROACHES TO COMPETITIVEINNOVATION Building layers of advantage Wider a company’s portfolio of advantages, the less risk it faces in competitive battles Aim for differentiation + cost reduction Sources of competitive advantage are mutually desirable layers, not mutually exclusive choices
- 6. APPROACHES TO COMPETITIVEINNOVATION Searching for loose breaks Required to break into a market or challenge a competitor • Attack outside existing market • Remain unnoticed
- 7. APPROACHES TO COMPETITIVEINNOVATION Changing the terms of engagement Barriers to Entry v/s Barriers to Imitation • Standardized machine components reduced cost• Distribution through office product dealers • Create a national service network
- 8. APPROACHES TO COMPETITIVEINNOVATION Competing through collaboration Win without fighting “Enemy’s enemy is your friend” • Calibrate competitor’s strength • Assessed the progress US rivals had made in cost reduction, quality and technology
- 9. External Audit Internal Audit Long-Term Objectives Generate, Evaluate, Select Strategies Implement Strategies: Mgmt Issues Implement Strategies: Marketing, Fin/Acct, R&D, CIS Measure& Evaluate Performance Vision & Mission COMPREHENSIVE STRATEGIC MANAGEMENT MODEL
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- 11. VISION 1. What DoWe Want to Become?
- 12. 1. What IsOur Business? Mission Procter & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people our shareholders, and the communities in which we live and work.
- 13. 2. The Processof Developing Vision and Mission Statements 3. Prepare a vision and mission statement 2. Background information. 1. Alternative strategies 4. Merge into single document 5. Final documents 1. Clear vision and mission statements are needed before alternative strategies can be implemented. 2. Select several articles about these statements and ask all managers to read these as background information. 3. Ask managers themselves to prepare a vision and mission statement for the organization. 4. Merge these statements into a single document and distribute the draft statements to all managers. 5. Extent that all managers have input into and support the final documents, organizations can more easily obtain managers
- 14. 3. Mission StatementComponents Customers - Who are the firm’s customers? Products or services - What are the firm’s major products or services? Markets - Geographically, where does the firm compete? Technology - Is the firm technologically current? Concern for survival, growth, and profitability - Is the firm committed to growth and financial soundness? Philosophy - What are the basic beliefs, values, aspirations, and ethical priorities of the firm? Self-concept - What is the firm’s distinctive competence or major competitive advantage? Concern for public image - Is the firm responsive to social, community, and environmental concerns? Concern for employees - Are employees a valuable asset of the firm?
- 15. 4. Benefits ofHaving a Clear Mission and Vision 1. Achieve clarity of purpose among all managers and employees. 2. Provide a basis for all other strategic planning activities. 3. Provide direction. 4. Provide a focal point for all stakeholders of the firm. 5. Resolve conflict views between managers. 6. Promote a sense of shared expectations among all managers and employees . 7. Project a sense of worth and intent to all stakeholders. 8. Project an organized, motivated organization worthy of support. 9. Achieve higher organizational performance. 10. Achieve synergy among all managers and employees
- 16. 5. Evaluate missionstatements of different organizations Procter & Gamble will provide branded products and services of superior quality and value (7) that improve the lives of the world’s (3) consumers. As a result, consumers (1) will reward us with industry leadership in sales, profit (5), and value creation, allowing our people (9), our shareholders, and the communities (8) in which we live and work to prosper. (Author comment: Statement lacks three components: Products/Services, Technology, and Philosophy) We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2). We seek to produce healthy financial rewards for investors (5) as we provide opportunities for growth and enrichment to our employees (9), our business partners and the communities (8) in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity (6). (Author comment: Statement lacks three components: Customers, Technology, and Self-Concept)
- 17. Broad in scope Generatestrategic alternatives Not overly specific Reconciles interests among diverse stakeholders Finely balanced between specificity & generality Effective Missions
- 18. Arouse positive feelings& emotions Motivate readers to action Generate favorable impression of the firm Effective Missions
- 19. Reflect future growth Providecriteria for strategy selection Basis for generating & evaluating strategic options Are dynamic in nature Effective Missions
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- 21. PEPSICO MISSION PepsiCo’s missionis to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.
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Editor's Notes
- #4 An ambitious and compelling dream which provides emotional and intellectual energy for the company and defines the journey to the future.”