Welcome to Strategic Management with Professor Rust

1
Welcome to Strategic Management with Professor
Rust

• Please choose a seat.
• Sign the Completion of Prerequisites Form
• Look over and discuss the Syllabus
• Introduction to the Course
• Introduction to PowerWeb
• Overview of Strategic Management

2
(No Transcript)
3
Successful students in this course will

4
In-class Exercise

• On your Index Card, answer the following
• What is Strategy?
• Give an example.
• Get together with 4-5 other students and discuss
  your answers.
• Have a spokesperson be ready to report to the
  class.

5
Write on the Front of the Information Card

• Name
• Phone Number
• City/town where you live during the week
• E-mail
• Major
• Your ideal job
• One concept you hope to learn about in this
  course.
• The grade you wish to earn.

6
STRAT . E . GY (strat e je) n., pl. -ties
Gr. stratos, army
agein, to lead 1. orig. the art of the
general 2. the science of planning and
directing military operations
7
Strategic Management

• Consists of the analysis, decisions, and actions
  an organization undertakes in order to create and
  sustain competitive advantages.
• Why do firms outperform others?
• How do firms outperform others?

8
Three Ongoing Processes

• Analysis The Strategic Goals
• Vision
• Mission
• Objectives
• Internal and External Environments
• Decisions Corporate Leaders
• What industry(ies)?
• How do we compete?
• Actions Implementing Strategies
• Allocation of resources
• Organizational design

9
A Look at Kmart

• Read the short article Venerable Kmart tries to
  hang on.
• As a group, answer the following
• Why does Kmart seek bankruptcy protection?
• What does Kmart need to do to turn around the
  company?
• What market group(s) should Kmart pursue? Why?
• Do you think Kmart can be successful in the
  long-run?

10
Specialized Bicycle Components

• What is SBCs mission statement?
• What are SBCs overall goals?
• What is SBCs motto?
• How does SBC display social responsibility?

11
Hierarchy of Strategy
Corporate-Level What business to be in
Business-Level How to compete in that business
Functional-Level How best can each function
support the business-level strategy
12
Groups who are affected by a firms performance
and who have claims on its performance
Stakeholders
The firm must maintain performance at an adequate
level in order to maintain the participation of
key stakeholders
Capital Market
Firm
Product Market
Organizational
Owners Board of Directors Employees Managers Non-M
anagers
13
Social Responsibility

• Strives to improve the overall welfare of
  society.
• Actions taken by the business are for the
  betterment of society.
• Use of triple bottom line accounting model
• financial capital and measures
• ecological and material capital
• human and social capital

14
New Competitive Landscape
The pace of change is relentless.... and
increasing
Traditional industry boundaries are
blurring...such as
Computers
Telecommunications
15
New Competitive Landscape
The global economy is changing
Traditional sources of competitive advantage no
longer guarantee success
People, goods, services and ideas move freely
across geographic boundaries
New keys to success include
New opportunities emerge in multiple global
markets
Flexibility
Innovation
Markets and industries become more
internationalized
Speed
Integration