STRATEGIC MANAGEMENT ICS 395 AJ ALMANEY, PH.D.

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STRATEGIC MANAGEMENTICS 395AJ ALMANEY, PH.D.
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INFORMATION FORTHE INDEX CARDS

• COURSE NO. ICS 395
• DAY
• YOUR NAME
• PHONE NO.
• NAME OF CASE
• YOUR GROUP NO.

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THE MEANING OF ANALYSIS

• IT IS THE PROCESS OF BREAKING A SYSTEM DOWN INTO
  SUBCOMPONENTS AND STUDYING EACH SUBCOMPONENT IN
  TERMS OF SPECIFIC CRITERIA.

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THE MEANING OF STRATEGIC ANALYSIS

• IT IS THE PROCESS OF ANALYZING AN ORGANIZATION
  FROM THE STRATEGIC MANAGEMENT PERSPECTIVE.

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THE MEANING OF STRATEGIC MANAGEMENT

• IT IS THE PROCESS OF ANALYZING THE ORGANIZATIONS
  INTERNAL AND EXTERNAL ENVIRONMENTS AS A BASIS FOR
  SELECTING A COURSE OF ACTION DESIGNED TO ACHIEVE
  THE ORGANIZATIONS LONG AND SHORT-TERM OBJECTIVES.

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INTERNAL ANALYSISINTERNAL ANALYSISIT IS
THE PROCESS OF EXAMINING THE INTERNAL OPERATIONS
OF THE COMPANY TO IDENTIFY THE STRENGTHS AND
WEAKNESSES
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INTERNAL ANALYSISEXAMPLES

• MICROSOFT ORGANIZATIONAL HEALTH INDEX
• THE UNIVERSITY OF CHICAGO ATTENTION TO SOFT
  STUFF

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EXTERNAL ANALYSISEXTERNAL ANALYSISIT IS
PROCESS OF EXAMINING THE EXTERNAL FORCES TO
IDENTIFY THE OPPORTUNITIES AND THREATS
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EXTERNAL ANALYSISEXAMPLES

• OLD NAVY FASTEST GROWING GAP UNIT
• JENNY MINGS ABILITY TO PREDICT FASHION
• SEVENTEEN MAGAZINE, DAUGHTERS
• TRIPS TO PARIS AND LONDON
• GENERAL MOTORS
• DEPAUL UNIVERSITY

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BENEFIT OFENVIRONMENTAL ANALYSIS

• HEIGHTENS AWARENESS OF INTERNAL CAPABILITIES AND
  EXTERNAL OPPORTUNITIES AND CHALLENGES.

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DOES ANALYSIS IMPROVE THE BOTTOM LINE?

• CONTINENTAL AIRLINES WHERE DO WE NEED TO
  IMPROVE? BENCHMARKING, JD POWERS, FORTUNES BEST
  PLACES TO WORK
• IMPROVES THE BOTTOM LINE SEARS STUDY 5 -gt
  1.3 -gt5

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AN OVERVIEW OF THE STRATEGIC ANALYSIS FRAMEWORK

• THE DESCRIPTIVE PHASE
• THE DIAGNOSTIC PHASE
• THE PRESCRIPTIVE PHASE

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THE DESCRIPTIVE PHASE

• THE PROCESS OF GATHERING INFORMATION ABOUT THE
  COMPANYS INTERNAL AND EXTERNAL ENVIRONMENTS

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THE DIAGNOSTIC PHASE

• IT INVOLVES EVALUATING AND PASSING JUDGEMENT ON
  THE GATHERED INFORMATION.
• ITS PURPOSE IS TO ASSESS THE PHYSICAL AND
  EMOTIONAL HEALTH OF THE COMPANY (I.E., ITS
  STRENGTHS AND WEAKNESSES)

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THE PRESCRIPTIVEPHASE

• DEVELOPING A STRATEGY TO IMPROVE THE
  ORGANIZATIONS COMPETITIVE POSITION

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FOCUS OF THE DESCRIPTIVE PHASE

• A. PROFILE OF THE INTERNAL ENVIRONMENT
• THE CORPORATE LEVEL
• THE FUNCTIONAL LEVE
• B. PROFILE OF THE EXTERNAL ENVIRONMENT
• THE TASK ENVIRONMENT
• THE GENERAL ENVIRONMENT

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THE CORPORATE LEVEL

• STRATEGIC MANAGERS
• BOARD OF DIRECTORS
• TOP MANAGEMENT
• ENVIRONMENTAL ANALYSIS
• INTERNAL ANALYSIS
• EXTERNAL ANALYSIS

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CORPORATE LEVEL (CONTD)

• STRATEGY FORMULATION
• MISSION
• VALUES STATEMENT
• VISION
• OBJECTIVES
• GRAND STRATEGIES
• COMPETITIVE STRATEGIES
• SLOGAN

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MISSION

• THE ORGANIZATIONS REASON FOR EXISTENCE
• IT ANSWERS THE QUESTION WHAT BUSINESS ARE WE IN?

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PURPOSE

• THE REASON FOR THE ORGANIZATIONS EXISTENCE

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THE MISSION STATEMENT OF HARD ROCK CAFE

• TO SPREAD THE SPIRIT OF ROCK N ROLL BY
  DELIVERING AN EXCEPTIONAL ENTERTAINMENT AND
  DINING EXPERIENCE.

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THE MISSION OFSTARBUCKS

• TO ESTABLISH STARBUCKS AS THE PREMIER PURVEYOR OF
  THE FINEST COFFEE IN THE WORLD WHILE MAINTAINING
  OUR UNCOMPROMISING PRINCIPLES AS WE GROW

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THE MISSION OFPAPA JOHNS

• PEOPLE ARE OUR MOST IMPORTANT ASSET. WE WILL
  PROVIDE CLEAR, CONSISTENT, STRATEGIC LEADERSHIP
  AND CAREER OPPORTUNITIES FOR OUR TEAM MEMBERS WHO
  EXHIBIT PASSION TOWARD THEIR WORK AND UPHOLD OUR
  CORE VALUES.

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VALUES STATEMENT

• VALUES REFER TO MANAGEMENT BELIEFS, PRINCIPLES,
  AND COMMITMENTS TO STAKEHOLDERS.
• PRIMARY STAKEHOLDERS ARE EMPLOYEES, CUSTOMERS,
  SHAREHOLDERS, AND SOCIETY.

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VALUES OFHARD ROCK CAFE

• WE ARE COMMITTED TO BEING AN IMPORTANT,
  CONTRIBUTING MEMBER OF OUR COMMUNITY AND OFFERING
  THE HARD ROCK FAMILY A FUN, HEALTHY, AND
  NURTURING WORK ENVIRONMENT WHILE ENSURING OUR
  LONG-TERM SUCCESS

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FORDSGUIDING PRINCIPLES

• QUALITY COMES FIRST
• CUSTOMERS ARE OUR FOCUS
• EMPLOYEE INVOLVEMENT IS OUR WAY OF LIFE
• DEALERS AND SUPPLIERS ARE OUR PARTNERS
• INTEGRITY IS NEVER COMPROMISED

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VALUES AND REPUTATION

• BEN AND JERRYS
• WAL-MART
• HOME DEPOT
• JOHNSON AND JOHNSON
• DISNEY
• SOUTHWEST AIRLINES
• COCA COLA
• MICROSOFT

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VALUES AND REPUTATION

• JOHNSON AND JOHNSON (1)
• COCA COLA (2)
• BEN AND JERRYS (5)
• WAL-MART (6)
• HOME DEPOT (8)
• DISNEY (10)
• MICROSOFT (15)
• SOUTHWEST AIRLINES (25)

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JOHNSON AND JOHNSONSCREDO

• OUR FIRST RESPONSIBILITY IS TO THE DOCTORS,
  NURSES AND PATIENTS, TO MOTHERS AND FATHERS AND
  ALL OTHERS WHO USE OUR PRODUCTS AND SERVICE.
• WE ARE RESPONSIBLE TO OUR EMPLOYEES, THE MEN AND
  WOMEN WHO WORK WITH US THROUGHOUT

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J AND JS CREDO

• THE WORLD
• WE ARE RESPONSIBLE TO THE COMMUNITIES IN WHICH WE
  LIVE AND WORK AND TO THE WORLD COMMUNITY AS WELL.
• OUR FINAL RESPONSIBILITY IS TO OUR STOCKHOLDERS.
  BUSINESS MUST MAKE A PROFIT.

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COMPANIES WITHWORST REPUTATION

• EXXON
• K-MART

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VISIONTRADITIONAL MEANING

• HALLUCINATION
• SOMETHING SEEN DURING HALLUCINATION
• THE POWER TO ANTICIPATE FUTURE EVENTS

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VISIONARY

• A PERSON WHO HALLUCINATES
• A PERSON WHO IS GIVEN TO FANCIFUL OR IMPRACTICAL
  IDEAS
• A PERSON WHO IS GIVEN TO AUDACIOUS, SPECULATIVE
  IDEAS

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EXAMPLES OF VISIONAIRESHISTORICAL ONES

• THE WRIGHT BROTHERS, 1903
• PHILO FARNSWORTH, 1939
• EDWIN LAND, 1947
• JOHN F. KENNEDY, 1961

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VISIONARIESRECENT ONES

• FRED SMITH
• TED TURNER
• SAM WALTON
• MICHAEL DELL

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VISION

• IT DESCRIBES WHAT THE COMPAY ASPIRES TO BECOME

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STARBUCKSMISSION OR VISION?

• TO ESTABLISH STARBUCKS AS THE PREMIER PURVEYOR OF
  THE FINEST COFFEE IN THE WORLD WHILE MAINTAINING
  OUR UNCOMPROMISING PRINCIPLES AS WE GROW

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EXAMPLES OF VISION STATEEMENTS

• GENERAL MOTORS
• OUR VISION FOR GM IS TO BE THE WORLD LEADER IN
  TRANSPORTATION PRODUCTS AND SERVICES, COMMITTED
  TO TOTAL CUSTOMER ENTHUSIASM THROUGH PEOPLE,
  TEAMWORK, TECHNOLOGY, AND CONTINUOUS IMPROVEMENT.

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GM VISION(CONTD)

• TO ACHIEVE OUR VISION, WE MUST GENERATE CUSTOMER
  ENTHUSIASM IN THE MARKETPLACE THAT TRANSLATES
  INTO LEADERSHIP IN SALES, EARNINGS, AND RETURNS
  ON INVESTMENT AND ASSETS.

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VISION OFHOLY CROSS HOSPITAL

• TO BECOME THE RECOGNIZED HEALTHCARE PROVIDER OF
  CHOICE WITHIN THE COMMUNITY BY ACHIEVING AN
  EXCEPTIONAL SERVICE, SUPERIOR QUALITY, LOW COST,
  AND CONVENIENT ACCESS. ,

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HOLY CROSS VISION(CONTD)

• WE WILL ACHIEVE THIS BY BRINGING PARTNERS,
  LEADERS, AND PHYSICIANS TOGETHER INTO A COHESIVE
  TEAM THAT IS COMMITTED TO OUR CORE VALUES OF
  SERVICE, EXCELLENCE, RESPECT, VALUE, AND
  ENTHUSIASM.

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COMPONENTS OF AVISION STATEMENT

• STATE WHAT YOUR COMPANY ASPIRES TO BECOME
• IDENTIFY THE INTERNAL CONDITIONS (CORPORATE
  CULTURE) THAT WILL HELP IN IMPLEMENTING IT

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OBJECTIVE

• AN EXPECTATION TARGET THAT IS BOTH MEASURABLE
  AND TIME BOUND.

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A GOOD OBJECTIVE

• SPECIFIC
• MEASURABLE
• ATTAINABLE
• RELEVANT
• TIME BOUND

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STRETCH OBJECTIVES

• THEY ARE OBJECTIVES THAT ARE PERCEIVED AS
  IMPOSSIBLE TO ACHIEVE

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STRETCH OBJECTIVESGENERAL ELECTRIC

• INCREASE SALES FROM 13 TO 25
• MAKE RESOURCES AVAILABLE TO ADHIEVE THE OBJECTIVE

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STRETCH OBJECTIVESCITIBANK

• ACHIEVERS VS. NON-ACHIEVERS
• CONSEQUENCES
• HUMILIATION
• BURNOUT
• TURNOVER
• UNETHICAL BEHAVIOR

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GOAL

• AN EXPECTATION TARGET THAT IS NEITHER MEASURABLE
  NOR BOUND BY A TIME HORIZON.

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GRAND STRATEGY

• IT IS THE GENERAL PLAN OF ACTION TO ACHIEVE
  CORPORATE OBJECTIVES
• EXAMPLES
• MARKET DEVELOPMENT
• WAL- MART IN GERMANY
• CONCENTRIC DIVERSIFICATION
• PEPSICO TROPICANA
• COCA COLA MINUTE MAID

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GRAND STRATEGY

• HORIZONTAL INTEGRATION
• LOREAL AND MEBELINE
• VERTICAL INTEGRATION
• GENERAL MOTORS FORWARD AND BACKWARD INTGEGRATION

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GRAND STRATEGY

• CONGLOMERATE DIVERSIFICATION
• GE MEDICAL SYSTEMS, AIRCRAFT ENGINES, POWER
  GENERATORS, LIGHTING, APPLIANCES, CAPITAL
• DAEWOO TRADING, SHIPBUILDING, CARS,
  TELECOMMUNICATIONS , DINERS CLUB
• AMOZON.COM

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TACTICS

• REFERS TO SHORT-TERM (DAY TO DAY OR MONTH TO
  MONTH) DECISIONS THAT ENABLE THE COMPANY TO
  ADAPT TO ENVIRONMENTAL CHANGES.

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COMPETITIVE STRATEGY

• A COURSE OF ACTION INTENDED TO PROVIDE THE
  ORGANIZATION WITH A SUSTAINABLE COMPETITIVE
  ADVANTAGE.

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MICHAEL PORTER COMPETITIVE STRATEGIES

• COST LEADERSHIP
• DELL COMPUTERS.
• PRODUCT DIFFERENTIATION
• TOYOTA
• FOCUS
• DELIA

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WHICH STRATEGY ISTHE MOST EFFECTIVE?

• A COMBINATION STRATEGY
• WAL-MART COST LEADERSHIP AND CUSTOMER SERVICE

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SELECT SLOGANS

• FORMULATE A STRATEGIC SLOGAN
• FORMULATE A MARKETING SLOGAN

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STRATEGIC SLOGAN

• A MOTTO THAT SUMS UP THE COMPANYS CORPORATE
  CULTURE, ITS VISION, OR GRAND STRATEGY.

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EXAMPLES OFSTRATEGIC SLOGANS

• FORD QUALITY IS JOB ONE
• APPLE THINK DIFFERENT
• SOUTHWEST AIRLINES A SYMBOL OF FREEDOM
• HEWLETT PACKARD INVENT
• TOYOTO THE RELENTLESS PURSUIT OF PERFECTION

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MARKETING SLOGAN

• A MOTTO DESIGNED TO SELL A PRODUCT OR SERVICE.

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MARKETING SLOGANEXAMPLES

• PEPSI THE JOY OF COLA
• HOOVER DEEP DOWN, YOU WANT HOOVER
• BAYER ASPIRING POWERFUL PAIN RELIEVER AND MORE
• MCDONALDS DID SOMEBODY SAY MCDONALDS
• MICROSOFT WHERE DO YOU WANT TO GO TODAY?

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CORPORATE LEVEL (CONTD)

• STRATEGY IMPLEMENTATION
• LEADERSHIP
• MOTIVATION
• COMMUNICATION
• CORPORATE CULTURE
• ORGANIZATIONAL STRUCTURE
• POLICIES
• BUDGETARY ALLOCATIONS

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CORPORATE CULTURE

• A SET OF BEHAVIORS OR QUALITIES THAT ARE VALUED
  BY A GROUP.
• DAIMLER/CHRYSLER
• MERGING SPEED (NUKE IT OUT)
• MEETINGS LENGTH
• SMOKING
• LUNCH BEVERAGE
• ADDRESSING THE CEO

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THE FUNCTIONAL LEVELMARKETING

• PRODUCTS/SERVICES
• MARKET SHARE
• TARGET MARKET
• SALES VOLUME
• ADVERTISING AND PROMOTION
• DISTRIBUTION
• PRICING

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PRODUCTION

• LOCATION OF FACILITIES
• NEWSNESS OF FACILITIES
• QUALITY CONTROL
• PRODUCTION CAPACITY
• INVENTORY

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HUMAN RESOURCES

• RECRUITMENT
• SELECTION
• TRAINING AND DEVELOPMENT
• COMPENSATION
• PERFORMANCE APPRAISAL
• SUCCESSION PLANNING

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FINANCE

• MANAGEMENT OF CASH
• MANAGEMENT OF INVENTORIES
• MANAGEMENT OF ACCOUNTS RECEIVABLE
• MANAGEMENT OF TOTAL ASSETS
• GENERAL PROFIT PICTURE

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THE DIAGNOSTIC PHASEDIAGNOSE THE STRENGTHS AND
WEAKNESSES

• A STRENGTH IS A FAVORABLE CONDITION IN THE
  ORGANIZATIONS INTERNAL ENVIRONMENT.
• A WEAKNESS IS AN UNFAVORABLE CONDITION IN THE
  ORGANIZATIONS INTERNAL ENVIRONMENT.

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STRENGTHS AND WEAKNESSE OF THECORPORATE LEVEL

• STREATEGIC MANAGERS
• BOARD OF DIRECTORS
• TOP MANAGEMENT
• STRATEGY FORMULATION
• MISSION, VISION, OBJECTIVES, GRAND STRATEGIES,
  COMPETITIVE STRATEGIES

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STRENGTHS AND WEAKNESSE OF THECORPORATE LEVEL

• STREATEGY IMPLEMENTATION
• SELECT TWO OF THE FOLLOWING MOTIVATION,
  COMMUNICATION, CORP. CULTURE, STRUCTURE,
  POLICIES, BUDGET

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STRENGTHS AND WEAKNESSE OF THEFUNCTIONAL LEVEL

• MARKETING
• FINANCE
• SELECT TWO OF
• PRODUCTION, RD, HUMAN RESOURCES, PUBLIC AFFAIRS

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IDENTIFY THE DISTINCTIVE COMPETENCY

• THAT ASPECT OF THE COMPANYS OPERATIONS THAT
  GIVES IT A SUSTAINABLE ADVANTAGE OVER ITS
  COMPETITORS.

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DISTINCTIVE COMPETENCYEXAMPLES

• SOUTHWEST AIRLINES
• ENTERPRISE RENT A CAR

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DISTINCTIVE COMPETENCYTEST QUESTIONS

• CAN IT BE EASILY COPIED BY THE COMPETITORS?
• DOES IT OFFER ANY VALUE TO THE CUSTOMERS?

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CORE COMPETENCY

• THE PRINCIPAL BUSINESS OF THE COMPANY
• THE BUSINESS THAT THE COMPANY STARTED OUT WITH
• CORE PRODUCTS, CORE MARKET, CORE CUSTOMERS

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IDENTIFY THE KEY WEAKNESS

• THE KEY WEAKNESS IS ANY UNFAVORABLE CONDITION
  THAT CAN PLACE THE COMPANY AT A COMPETITIVE
  DISADVANTAGE OR DRIVE IT OUT OF BUSINESS.

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DIAGNOSE THE OPPORTUNITIES AND THREATS

• AN OPPORTUNITY IS A FAVORABLE CONDITION IN THE
  EXTERNAL ENVIRONMENT.
• A THREAT IS AN UNFAVORABLE CONDITION IN THE
  EXTERNAL ENVIRONMENT.

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OPPORTUNITIES/THREATSEXAMPLE

• CHARLES SCHWAB VS. MERRILL LYNCH
• E- COMMERCE AND HOME DEPOT
• BREAKFAST CEREAL , BAGELS, AND MUFFINS
• MIXED EFFECTS OF FORCES FILENS BASEMENT

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DIAGNOSE THE OPPORTUNITIES AND THREATS

• IDENIFY THE OPPORTUNITIES AND THREATS IN
• THE TASK ENVIRONMENT (INDUSTRY, COMPETITORS,
  CUSTOMERS )
• THE GENERAL ENVIRONMENT (ECONOMY, DEMOGRAPHICS,
  TECHNOLOGY )
• SELECT THE KEY OPPORTUNITY AND KEY THREAT

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DIAGNOSE THE PROBLEMSDEFINITION OF TERMS

• SYMPTOM
• CAUSE
• PROBLEM

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THE MEANING OFSYMPTOM AND CAUSE

• A SYMPTOM IS A SIGN OR AN INDICATION OF THE
  EXISTENCE OF A PROBLEM
• A CAUSE IS THE CONDITION THAT GIVES RISE TO THE
  SYMPTOM

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THE DIFFERENCE BETWEEN SYMPTOM AND CAUSE

• A SYMPTOM IS AN INTERNAL WEAKNESS. A CAUSE CAN BE
  EITHER AN INTERNAL WEAKNESS OR AN EXTERNAL
  THREAT.
• A SYMPTOM IS A DEPENDENT VARIABLE. A CAUSE IS AN
  INDEPENDENT VARIABLE
• A SYMPTOM IS READILY KNOWN, A CAUSE IS NOT

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THE MEANING OF PROBLEM

• A PROBLEM IS A GAP BETWEEN THE EXISTING
  CONDITIONS AND THE DESIRED CONDITIONS

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STATEMENT OF THE PROBLEM

• A PROBLEM IS STATED IN TERMS OF AN INTERNAL
  COMPONENT WHERE THE SYMPTOM LIES

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STATEMENT OF THE PROBLEM

• PROBLEM FINANCE
• SYMPTOM DECLINING PROFITS
• PROBLEM HUMAN RESOURCES
• SYMPTOM HIGH TURNOVER
• PROBLEM RD
• SYMPTOM LACK OF NEW PRODUCTS
• PROBLEM PRODUCTION
• EQUIPMENT BREAKDOWNS

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STATEMENT OF THE PROBLEM, SYMPTOM, AND CAUSES

• PROBLEM FINANCE
• SYMPTOM LOW PROFIT MARGIN
• CAUSES
• DECLINING MARKET SHARE
• POOR PRODUCT QUALITY
• STIFF COMPETITION
• LACK OF PRODUCT INNOVATION

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THE STRATEGIC MATCH

• IT IS THE PROCESS OF ESTABLISHING LINKAGES
  BETWEEN THE INTERNAL STRENGTHS AND WEAKNESSES AND
  THE EXTERNAL OPPORTUNITIES AND THREATS

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DIMENSIONS OFSTRATEGIC MATCH

• LEVERAGESTRENGTH AND OPPORTUNITY HP, OFFICE
  DEPOT
• CONSTRAINTWEAKNESS AND OPPORTUNITY POSTAL
  SERVICE
• MAINTENANCESTRENGTH AND THREAT PIZZA HUT,
  E-BAY
• VULNERABILITYWEAKNESS AND THREAT MONTGOMERY
  WARD, COM ED

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THE PRIMARY STRATEGICMATCH POSITION

• IT IS THE DIMENSION THAT MOST CLOSELY DESCRIBES
  THE COMPANYS CONDITIONS.

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DETERMINING THE PRIMARY STRATEGIC MATCH POSITION

• LOGIC/COMMON SENSE
• PORTFOLIO PLANNING TOOLS
• THE BOSTON CONSULTING GROUP MATRIX (BCG)
• THE GE PLANNING GRID

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THE BCG MATRIX
MARKET SHARE
STAR
QUESTION MARK
MARKET GROWTH
DOG
CASH COW
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GE PLANNING GRID
Business Strategy/ Competitive Position
Industry Attractiveness
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BUSINESS STRENGTHS/ COMPETITIVE POSITION

• SUCCESS FACTORS
• MARKET SHARE
• BREADTH OF PRODUCT LINE
• DISTRIBUTION CHANNELS
• PRICE COMPETITIVENESS
• ADVERTISING EFFECTIVENESS
• PRODUCT QUALITY
• CUSTOMER SERVICE

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INDUSTRY ATTRACTIVENESS

• EVALUATION CRITERIA
• INDUSTRY GROWTH
• INDUSTRY SIZE
• INDUSTRY CYCLICALITY
• INDUSTRY SEASONALITY
• ENTRY AND EXIST BARRIERS
• COMPETITORS
• GOVERNMENT REGULATIONS

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GE PLANNING GRID
Business Strength/ Competitive Position
Leverage
Constraint
Industry Attractiveness
Maintenance
Vulnerability
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IDENTIFY THE DISTINCTIVE COMPETENCY AND
MAJOR WEAKNESS OF THE KEY COMPETITOR
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FORMULATE A STRATGIC PLAN

• WRITE A NEW MISSION STATEMENT
• WRITE A NEW VISION STATEMENT
• WRITE A VALUES STATEMENT
• SET LONG AND SHORT-TERM OBJECTIVES
• SELECT GRAND STRATEGIES

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FORMULATE A STRATEGIC PLAN

• FORMULATE OPERATIONAL STRATEGIES
• SELECT ONE STRATEGIC SLOGAN
• SELECT ONE MARKETING SLOGAN

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WRITE A NEWMISSION STATEMENT

• BUSINESS DOMAIN
• PRODUCTS AND SERVICES
• TARGET MARKET
• DISTRIBUTION CHANNELS

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WITE A NEWVISION STATEMENT

• WHAT DO YOU ASPIRE TO BECOME?
• WHAT TYPE OF CORPORATE CULTURE WOULD YOU CREATE
  TO HELP YOU GET THERE?

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WRITE AVALUES STATEMENT

• WHAT TYPE OF RESPONSIBILITIES DO YOU HAVE TOWARD
  YOUR MAJOR STAKEHOLDERS?
• INCLUDE AT LEAST FOUR GROUPS OF STAKEHOLDERS

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CORPORATE OBJECTIVES

• SET LONG -TERM CORPORATE OBJECTIVES
• SET SHORT-TERM CORPORATE OBJECTIVES

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SELECT A GRAND STRATEGY

• GENERATE STRATEGIC OPTIONS
• GENERATE A SET OF EVALUATIVE CRITERIA EXPANSION
  IN EUROPE, MERGER
• APPLY THE CRITERIA TO THE STRATEGIC OPTIONS
• CHOOSE THE MOST EFFECTIVE STRATEGY

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SELECT ACOMPETITIVE STRATEGY

• COST LEADERSHIP, PRODUCT DIFFERENTIAION, FOCUS
• JUSTIFY YOUR SELECTION

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OPERATIONAL STRATEGY

• A DETAILED PLAN OF ACTION FORMULATED TO ACHIEVE
  DEPARTMENTAL OBJECTIVES

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FORMULATE TWO OPERATIONAL STRATEGIES

• AT LEAST ONE TO IMPLMENT THE GRAND STRATEGY
• A SECOND TO SOLVE A PROBLEM OR REMOVE A WEAKNESS
• OTHERS IF APPLICABLE

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STRUCTURE OF THE OPERATIONAL STRATEGY

• LONG AND SHORT-TERM OBJECTIVES
• SPECIFIC RECOMMENDATIONS CLASSIFIED BY
  SUBCOMPONENTS
• TIME TABLE
• COST
• SAVINGS, IF ANY