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    Excerpt From Sun Tzu's "The Art of War Writings"

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    Strategic management involves 3 stages: formulation, implementation, and evaluation. It requires identifying opportunities/threats and strengths/weaknesses to establish objectives and strategies. Communication is key, as it helps managers and employees support the organization. Strategic planning provides financial benefits like improved sales and productivity, as well as non-financial benefits like prioritizing opportunities. Some firms avoid it due to lack of knowledge, poor structures, or overconfidence. Both business and military strategy assume competition/conflict and require adapting to change.

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    Excerpt From Sun Tzu's "The Art of War Writings"

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    28 views2 pages
    Strategic management involves 3 stages: formulation, implementation, and evaluation. It requires identifying opportunities/threats and strengths/weaknesses to establish objectives and strategies. Communication is key, as it helps managers and employees support the organization. Strategic planning provides financial benefits like improved sales and productivity, as well as non-financial benefits like prioritizing opportunities. Some firms avoid it due to lack of knowledge, poor structures, or overconfidence. Both business and military strategy assume competition/conflict and require adapting to change.

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    Strategic management involves 3 stages: formulation, implementation, and evaluation. It requires identifying opportunities/threats and strengths/weaknesses to establish objectives and strategies. Communication is key, as it helps managers and employees support the organization. Strategic planning provides financial benefits like improved sales and productivity, as well as non-financial benefits like prioritizing opportunities. Some firms avoid it due to lack of knowledge, poor structures, or overconfidence. Both business and military strategy assume competition/conflict and require adapting to change.

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    28 views2 pages

    Excerpt From Sun Tzu's "The Art of War Writings"

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    Strategic management involves 3 stages: formulation, implementation, and evaluation. It requires identifying opportunities/threats and strengths/weaknesses to establish objectives and strategies. Communication is key, as it helps managers and employees support the organization. Strategic planning provides financial benefits like improved sales and productivity, as well as non-financial benefits like prioritizing opportunities. Some firms avoid it due to lack of knowledge, poor structures, or overconfidence. Both business and military strategy assume competition/conflict and require adapting to change.

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    STRATEGIC MANAGEMENT  Communication is a key to successful strategic management

     Through dialogue and participation, managers and


    Strategic management is the art and science of formulating, employees become committed to supporting the organization
    implementing, and evaluating cross-functional decisions that enable an
    organization to achieve its objectives.

     A strategic plan is a company’s game plan


     A strategic plan results from tough managerial choices
    among numerous good alternatives, and it signals
    commitment to specific markets, policies, procedures and
    operations

    Stages of Strategic Management

    1. Strategy formulation- includes developing a vision and


    mission, identifying an organization’s external opportunities
    and threats, determining internal strengths and weaknesses,
    establishing long-term objectives, generating alternative
    strategies, and choosing particular strategies to pursue Financial Benefits

     Businesses using strategic-management concepts show


     Deciding what new businesses to enter significant improvement in sales, profitability, and
     What businesses to abandon productivity compared to firms without systematic planning
     How to allocate resources activities
     Whether to expand operations or diversify  High-performing firms seem to make more informed
     Whether to enter international markets decisions with good anticipation of consequences
     Whether to merge or not
     How to avoid hostile takeover Non-financial Benefits

    2. Strategy implementation- often called the ACTION  It allows for identification, prioritization and exploitation of
    STAGE; requires a firm to establish annual objectives, opportunities
    devise policies, motivate employees, and allocate resources  It provides an objective view of management problems
    so that formulated strategies can be executed  It represents a framework for improved coordination and
    control of activities
    3. Strategy evaluation- reviewing external and internal factors  It minimizes the effects of adverse conditions and changes
    that are the bases for current strategies, measuring  It allows more effective allocation of time and resources to
    performance, and taking corrective actions identified opportunities

    Why Some Firms Do NO Strategic Planning


    Key Terms in Strategic Management
     Lack of knowledge in strategic planning
     Competitive Advantage- anything that a firm does  Poor reward structures
    especially well compared to rival firms
     Waste of time
     Too expensive
     Strategists- the individuals who are most responsible for the  Laziness
    success or failure of an organization  Fear of failure
     Overconfidence
     Vision statement- answers the question, ”What do we want  Prior bad experience
    to become”; often considered the first step in strategic  Fear of the unknown
    planning  Honest difference of opinion

     Mission statements- statements of purpose that distinguish Comparing Business and Military Strategy
    one business from other similar firms; addresses the basic
    question, “What is our business?”  A fundamental difference between military and business
    strategy is that business strategy is formulated,
     External opportunities and external threats- refer to implemented, and evaluated with an assumption of
    economic, social, cultural, demographic, environmental, competition, whereas military strategy is based on an
    political, legal, governmental, technological, and competitive assumption of conflict
    trends and events that could significantly benefit or harm an
    organization in the future
     Both business and military organizations must adapt to
     Internal strengths and weaknesses- an organization’s change and constantly improve to be successful
    controllable activities that are performed especially well or
    poorly
    Excerpt from Sun Tzu’s “The Art of War Writings”
     Objectives- specific results that an organization seeks to
    achieve in pursuing its basic mission; should be challenging,
    measurable, consistent, reasonable and clear  War is a matter of vital importance to the state: a matter of
    life or death, the road either to survival or ruin. Hence, it is
     Strategies- the means by which long-term objectives will be imperative that it be studies thoroughly.
    achieved; may include geographic expansion, diversification,  Know your enemy and know yourself, and in a hundred
    acquisition, product development, etc. battles, you will never be defeated
     Skillful leaders do not let a strategy inhibit creative counter-
     Policies- the means by which annual objectives will be movement
    achieved; include guidelines, rules, and procedures
    established to support efforts to achieve stated objectives MANAGEMENT STRATEGIES

    Strategy refers to the basic steps a manager must take to


    Benefits of Strategic Management
    reach objectives

    Historically, the principal benefit of strategic management Three Levels of Strategy


    has been to help organizations formulate better strategies through the
    use of a more systematic, logical and rational approach to strategic 1. Corporate Strategy- addresses the broad needs of the
    choice organization. This strategy is long-range and formed at the
    highest level
     Growth strategy- helps the company decide the amount and
    direction of growth
     Stability strategy- Used when the organization is satisfied with
    its performance.
     Defensive strategy- Used when the organization feels
    threatened by risk (usually from competitors).
     Combination

    2. Business Strategy

     Cost leadership- deliver the product or service more cheaply


    than the competitors
     Differentiation- be unique in product or service
     Focus strategy- concentrate on a particular market segment
    and surround it with a quality product or service

    3. Functional Strategy-

     Day-to-Day Operation
     Operational plan or tactical plan

    Polices, Procedures and Rules

     Policies are guidelines established to make decisions


    regarding specific, recurring situations
     Procedure is a list of steps to be followed for performing
    certain work. (Ex: how to run ticket sales)
     Rules are a prescribed direction for conduct. (Ex: No jeans
    in the workplace, No cell phone use, etc..)

    STRATEGIC PLANNING TOOLS

    The Planning Tool Bag

     Environmental Scanning

    Six major external environments that might create


    opportunities or pose threats to future planning:

    a) Demographic Trend- Americans are aging, there are


    more women than men in U.S., Hispanic-American
    population has passed African-American population in
    numbers, people living longer
    b) Economic Trend - (economy affects ticket sales,
    wages)
    c) Political Trend - (many businesses are regulated)
    d) Competitive Trend - (who are you competing with)
    e) Technological Trend - (big screens, instant replay)
    f) Cultural and Lifestyle Trend - (viewers tastes change)

     SWOT Analysis

    a) Strengths - Player talent, popularity with fans,


    employee loyalty
    b) Weaknesses- Personnel problems, falling revenue,
    poor management decisions
    c) Opportunities- Internet, global expansion, improved
    economy
    d) Threats- Competition, lawsuits, labor troubles, declining
    popularity

     Benchmarking

    a) Have a specific problem in mind that should be


    compared to other organizations
    b) Make sure that the correct “best practices” or
    benchmarks are identified
    c) Do not expect too many answers from sensitive areas
    such as pricing, revenues, or managerial discipline
    d) Keep the data received confidential to ensure that
    strategies can be built upon the information. (Ex:
    coaches copy plays

     Scenario Building

    a) Involves creating a hypothetical situation that is then


    used to aid decision-making efforts (What if?)
    b) Often reveals alternatives that would have gone
    unnoticed under other decision-making models. (used
    by military and law enforcement)
    Ex: Spring training, “What do you do when….”
    (Tornado drills, fire drills)

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