MANAGEMENT STRATEGIES

2000 year history – strategy derived from the Greek word “stratcgos” stratus (meaning army) and “ago” (meaning leading/moving). The Greeks first used the word to describe managing military forces.

Today:Strategy refers to the steps a manager must take to reach

objectives or to accomplish plans.

THE ROOTS OF STRATEGY

Defined: Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

STRATEGIC MANAGEMENT

1st level - Corporate Strategies - address the broad needs of the industry and are generally tied to the mission statement of the company.

What is a Mission Statement? Mission Statement – Describes why an organization is operating. Usually

business oriented but may also take on a social responsibility as well.

Vision – identifies where the organization wants or intends to be in the future.

THREE LEVELS OF STRATEGY

NBA Mission Statement

NBA Mission Statement

MISSION STATEMENTS

The Mission of the Pro Football Hall of Fame is:To honor, preserve, educate and promote. . . To honor individuals who have

made outstanding contributions to professional football 

 To preserve professional football’s historic documents and artifacts 

 To educate the public regarding the origin, development and growth of professional football as an important part of American culture

 To promote the positive values of the sport

VS

You are Senior Management within a recovery organization that has been established to address the recovery efforts of the Jersey Shore after Hurricane Sandy.

1.Write a Mission Statement that describes the purpose and vision of your organization. Features of a Mission Statement

1. Mission must be feasible and attainable. It should be possible to achieve it.2. Mission should be clear enough so that any action can be taken.3. It should be inspiring for the management, staff and society at large.4. It should be precise enough, i.e., it should be neither too broad nor too

narrow.5. It should be unique and distinctive to leave an impact in everyone’s mind.6. It should be analytical, it should analyze the key components of the

strategy.7. It should be credible, i.e., all stakeholders should be able to believe it.

2.What type of Corporate Strategy would your organization use. Reference your Mission Statement.

ASSESS

4 specific corporate strategies Growth – help the organization decide the amount and direction

of growth. Stability – these strategies are used when an organization is

satisfied with their performance Defensive – retreat to what you know best. Combination –

CORPORATE STRATEGIES

Narrower in scope than corporate strategies. Focus on a specific business (Food venues at sports arenas)

Examples of business strategies Cost Leadership – deliver the product or service more cheaply

than competitors Differentiation – Be unique in product or service delivery Focus – Concentrate on a particular market segment and surround

it with a quality product or service

A year after the storm

BUSINESS STRATEGIES

Check out the Disney Web site and search for answers to the following questions.

As a teenager who grew up watching Disney shows, what do you think of the animation graphics? When answering reference works of other animation companies.

What interactive features are on the website? (list 3)

Mission Statement of Disney: "The mission of The Walt Disney Company is to be one of the world's leading producers and

providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."

Based on the Mission Statement above what Corporate Strategy do you think Disney is using? Support your answer by referencing segments of their Mission Statement.

Describe the business strategy or strategies you think Disney uses to reach the children’s market.

Describe the business strategy or strategies Disney uses to reach the parent’s market.

ASSIGNMENT

BossaballCrashed IceKronum

EXTREME SPORTS

Govern an organization’s day-to-day operations. Relate to the functions of a business, such as marketing, production, and finance. This type of strategy is directly tied to the strategies constructed at the corporate and business levels.

Short-term in nature – less than one yearKnown as the most important strategies because of their

need for timeliness and flexibility.

FUNCTIONAL STRATEGIES

STRATEGY FORMULATION VS STRATEGY IMPLEMENTATION

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning and decision-making involved in developing organization’s strategic goals and plans.

Strategy implementation involves all those means related to executing the strategic plans.

In short, Strategy Formulation is placing the Forces before the action.

In short, Strategy Implementation is managing forces during the action.

Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making.

Strategic Implementation is mainly an Administrative Task based on strategic and operational decisions.

Strategy Formulation emphasizes on effectiveness

Strategy Implementation emphasizes on efficiency.

Strategy Formulation is a rational process.

Strategy Implementation is basically an operational process.

Strategy Formulation requires co-ordination amoung few individuals.

Strategy Implementation requires co-ordination among many individuals.

Strategy Formulation requires a great deal of initiative and logical skills.

Strategy Implementation requires specific motivational and leadership traits.

Strategic Formulation precedes Strategy Implementation.

Strategy Implementation follows Strategy Formulation.

Development – corporate and business strategies are developed

Policies and Rules Policies – guidelines to make decisions regarding specific recurring

situations (doping, specific wear) Rules – direction for conduct leave little room for imagination (rules

governing your game)

STRATEGIC MANAGEMENT PROCESS

Environmental Analysis External Environment – everything that lies outside of an

organization’s control. Government regulations, economy, competition, technology, global

affairs and society Internal Environment – factors that are under the control of the

organization Collection of data, completion of reports, employees not care,

falsification of reports

BMX Extreme Sport

STRATEGIC MANAGEMENT PROCESS

Environmental Scanning – a planning tool that helps managers identify critical events from the external environment that will have a direct impact on decision making. (events may be known or unknown)

SEM has 6 major external environments Demographic trends Economic trends Political trends Competitive Trends Technological Trends Cultural and lifestyle Trends

STRATEGIC PLANNING TOOLS

SWOT Analysis Strengths Weaknesses Opportunities Threats

Benchmarking

STRATEGIC MANAGEMENT TOOLS

Action Phase: Organizational Structure must be in place Short-range goals must be constructed and implemented Construction of Functional strategies

Review Phase: Key to accomplishing strategies

Good managers anticipate problems, develop contingency plans, and meet obstacles head on.

ACTION AND REVIEW

Situation: You and your partner have followed and completed the strategic management process in the development of your new extreme sport. Explain how you would complete the final 2 phases of the strategic management process.

Implement – How will you introduce your sport to the world? What channels will you follow to get the sport out to the target audience of participants and viewers? What are your short range financial goals? How will you market the extreme sport?

Contingency Plan – 6 months after you have introduced your sport you are falling short in your financial goals, number of participants and viewers. Write a contingency plan that will address these issues.

ASSIGNMENT

5 steps: Formulate the organization’s mission or purpose Describe the business market that the organization will pursue Set objectives for meeting the needs of this market. Create and implement strategies to address market needs better

than competitors. Develop contingency (backup) plans for any needed adjustments.

REVIEW OF STRATEGIC MANAGEMENT PROCESS

Create a collage with pictures and explanatory text that displays an environmental scan of positive and negative forces that might impact your favorite band’s admission into a Music Hall of Fame.

Requirements:Minimum of 8 pictures in collageMinimum of 4 external environments Text explaining external environments used

Demographic trends Economic trends Political trends Competitive Trends Technological Trends Cultural and lifestyle Trends

ASSIGNMENT

Contingency Plan – 6 months after you have introduced your sport you are falling short in your financial goals, number of participants and viewers. Write a contingency plan that will address these issues.

DO NOW:

1. Prevents problems before they happen2. Reinforces the strength of group decision making3. Managers and employees tend to become empowered with

decision-making opportunities4. Strategically managed firms usually do not have glaring

weaknesses5. The entire organization tends to react more rapidly to new

opportunities and environmental changes.

ADVANTAGES OF STRATEGIC MANAGEMENT

1. Discipline needed in implementing strategic management may not be easy to accomplish

2. Strategic managers must be cautious o f making extravagant promises

3. Managers and employees may expect immediate rewards for their roles in the strategic management process

RISKS OF STRATEGIC MANAGEMENT