Strategic management

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Strategic management
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Strategic Management Process

• Basic elements of the strategic management
  process

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Hierarchy of strategy

• Corporate
  strategy

Business strategy (decision level)
Functional strategy
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Strategic decision-making process (1/2)
Select Strategic Factors Opportunities Threats
Scan External Environment Societal task
Examine Evaluate the current -Mission Objectives
Strategies policies
Review Corporate Governance Board
of Directors Top management
Analyze Strategic Factors (SWOT) In Light
of Current situation
Evaluate Current Performance Results
Scan Internal Environment Structure Culture res
ources
Select Strategic Factors Strengths weaknesses
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Strategic decision-making process(2/2)
Implement Strategies Programs Budgets procedures
select and Recommend Best alternative
Generate and Evaluate Strategic alternatives
Review and Revise as Necessary Mission objective
s
Evaluate And control
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Environmental variables
Social environment
Economic forces
Sociocultural forces
Task environment (industry)
suppliers
shareholders
Internal Environment Structures Culture resources
Employees Labor unions
governments
competitors
Special interest groups
Customers Creditors
Trade associations
Communities
Technological forces
Political-legal forces
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Some important variables in the social
environment
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Scanning the external environment
Analysis of societal environment Economic,
sociocultural, technological, political-legal
factors
Market analysis
Competitor analysis
Community analysis
Supplier analysis
Selection of Strategic factors Opportunities threa
ts
Interest Group analysis
Governmental analysis
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Issues priority matrix
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Forces driving industry competition
Potential entrants
Other Stakeholders
Industry Competitors Rivalry among Existing firms
Buyers
Suppliers
Substitutes
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Mapping strategic Groups ( U.S restaurant chain
industry)
Red lobster Olive Garden Chichis Perkins
high
Ponderosa bonanza
Shoneys Dennys Country kitchen
Price
KFC Pizza hut
Burger King McDonalds
low
Product-line breadth
Full menu
limited menu
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Industry matrix
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