Documente Academic
Documente Profesional
Documente Cultură
of Business Administration,
European University of Lefke, TRNC, Turkey
Prof. Dr. A M Sakkthivel: Skyline University
Course Coverage – What you learn and gain
Chapter 1: Strategic Management Process
Chapter 2: Company Mission
Chapter 3: External Environment
Chapter 4: Global Environment
Chapter 5: Internal Analysis
Chapter 6: Strategic Choice Analysis – Tools
Chapter 7: Strategic Implementation
Chapter 8: Issues (short and long term) affecting
Strategy Implementation
Chapter 9: Strategy Evaluation – Review/Audit of
Performance
1-2
PERSONIFYING STRATEGY
WALMART
https://www.youtube.com/watch?v=D5xKm8tf9Ks
https://www.youtube.com/watch?v=R1D4rfS6Y28
https://corporate.walmart.com/our-story/our-locations
https://www.walmart.com/
https://www.nasdaq.com/symbol/wmt/financials?query=income-
statement
Prof. Dr. A M Sakkthivel: Skyline University
STRATEGY IN TODAY’S VERSION
Business is Strategy
Strategy is Business
Survival
Sustainability
Growth
Amazon
Apple
Failure Companies
Nokia
Yahoo Prof. Dr. A M Sakkthivel: Skyline University
Successful innovative and futuristic companies to watch
for – Following Game Changer Strategy - Disruption
Strategic management:
The set of decisions and actions that
result in the formulation and
implementation of plans designed to
achieve a company’s objectives
1-8
Understanding Strategic Intent – Aviation Industry
https://www.youtube.com/watch?v=UaUl1tv3MYU
1-9
Nine Critical Tasks of Strategic Management --
Tasks 1-5:
1-10
Nine Critical Tasks of Strategic Management --
Tasks 6-9:
1-11
What is Strategy?
Large-scale, future-oriented plan
Used to interact within competitive
environment to achieve company goals
Provides a framework for managerial
decisions
Reflects a company’s awareness of the
main elements of competition
1-12
WHAT IS STRATEGY? – KNOW FROM STRATEGY GURU M E PORTER
https://www.youtube.com/watch?v=3Hd88eBgkw0
5 Golden Rules to understand and Practice Strategy
Rule 1: Operational Effectiveness Is not a Strategy
Rule 2: Strategy Rests on Unique Activities – Air Arabia
Strategic Positions: Variety (Different Services), Need (Low Cost Options) and
Access (Connecting Unique Destinations-Less Traffic)
Rule 3: A Sustainable Strategic Position Requires Trade-offs –
Focus on Core competence – difficult to imitate by competitors – Functional
Benefits (BMW, Apple)
Rule 4: Fit Drives Both Competitive Advantage and
Sustainability – Operational and Execution Excellence (Sony, Samsung)
Rule 5: Rediscovering Strategy – Avoid Growth trap – Desire to
exploit potential and consumer buying power – Avoid rapid diversification
in to non –core areas (DAWOO) – leads to diluting core business value
(Motorola)
Dimensions of Strategic Decisions
Strategic issues require top-management
decisions
Strategic decisions overarch several
areas of a firm’s operations
Usually only top management has the
perspective needed to understand
their broad implications
Usually only top managers have the
power to authorize necessary resource
allocations
1-14
Dimensions of Strategic Decisions (contd.)
Strategic issues require large amounts of the
firm’s resources
They involve substantial allocations of
people, physical assets, and money
Strategic decisions commit the firm to
actions over an extended period
In highly competitive firms, achieving
and maintaining customer satisfaction
frequently involves commitment from
every facet of the firm
1-15
Dimensions of Strategic Decisions (contd.)
Strategic issues often affect the firm’s long-term
prosperity
Strategic decisions commit the firm for a
long time, typically 5 years; however the
impact lasts much longer
Once a firm has committed itself to a
strategy, its image and competitive
advantages are usually tied to that strategy
Firms become known for what they do and
where they compete. Shifting away from
that can jeopardize their previous gains.
1-16
Dimensions of Strategic Decisions (contd.)
1-17
Dimensions of Strategic Decisions (contd.)
Strategic issues usually have
multifunctional or multibusiness
consequences.
Strategic decisions have complex
implications for most areas of the
firm
Decisions about customer mix,
competitive emphasis, or
organizational structure involve a
number of the firm’s SBUs, divisions,
or program units
1-18
Dimensions of Strategic Decisions (contd.)
Strategic issues require considering the
firm’s external environment
All businesses exist in an open system.
They affect and are affected by external
conditions that are largely beyond their
control
Successful positioning requires that
strategic managers look beyond
operations and consider what relevant
others are likely to do
1-19
Three Levels of Strategy
Corporate level: board of
directors, CEO &
administration [Highest]
Business level: business and
corporate managers [Middle]
Functional level: Product,
geographic, and functional area
managers [Lowest]
1-20
Alternative Strategic Management
Ex. 1.3
Structures
1-21
Characteristics of Strategic Management
Decisions: Corporate
1-23
Characteristics of Strategic Management
Decisions: Business
1-24