Tag Archives: Strategic management

The Wonderful World of Global Strategic Management

Statue of Ralph Waldo Emerson, full-length, se...

Statue of Ralph Waldo Emerson, full-length, seated, facing front (Photo credit: Wikipedia)

English: Engraving of American philosopher and...

English: Engraving of American philosopher and poet Ralph Waldo Emerson as seen in his later years. Scanned from Ralph Waldo Emerson by Oliver Wendell Holmes and Charles Dudley Warner. Published by Houghton Mifflin, 1885. (Photo credit: Wikipedia)

Strategic Aligment Cycle

Strategic Alignment Cycle (Photo credit: Wikipedia)

Strategic Management involves  the “Art of Winning.” If you want to win, you must embrace change with entrepreneurial passion to create a sustained competitive advantage. You are the master of your destiny! Your diligence will enhance your success in all of your future endeavors.

What is your end game? Ralph Waldo Emerson said “Commerce is a game of skill which many people play but which few play well.”

Watch these videos:

 

English: Ralph_Waldo_Emerson_1940_Issue-3c.jpg...

English: Ralph_Waldo_Emerson_1940_Issue-3c.jpg Category:Famous Americans Issues Category:Ralph Waldo Emerson (Photo credit: Wikipedia)

 

 

 

Look at my Pinterest Board for Strategic Management Concepts and infographics: http://www.pinterest.com/socialmediaevie/learn-about-strategic-management/

In my class, you will build an arsenal of Global Strategic Management skills that will help you win in life! You will optimize your personal value chain!

Components of the Value Chain http://www.pinterest.com/pin/237213105346949860/

 

The over-riding intent of topic is to help you become a more savvy participant in the game of commerce. This will prepare you for a successful management career. This is a big picture course; it cuts across the whole spectrum of business functions that you have studied in your previous coursework. You will synthesize what you have learned in prior classes to make fact-based decisions.

You must focus on the total enterprise: (1) the industry and the competitive environment (2) long run direction and strategy (3) resources and competitive capabilities and (4) prospects for success. You will seek strategic harmony; a blend of sound strategy formulation and effective strategy execution!

 

Marine Institute Ireland, Strategic_Planning_S...

Marine Institute Ireland, Strategic_Planning_Symbol (Photo credit: Wikipedia)

The skills that you build in class, will ultimately maximize the value of your personal and professional assets with a strategic plan that you will deploy.

Change Management

Change Management (Photo credit: larry_odebrecht)

First, you must analyze the Drivers of Change in the External Environment by conducting research using the following model:

Drivers of Change in the External Environment Mindmap: http://www.xmind.net/share/socialmediaevie/drivers-of-change-in-the-external-environment/ #xmind

Michael Porter’s Five-Forces: http://www.pinterest.com/pin/237213105346371411/

What is business level strategy? https://www.youtube.com/watch?v=V14kuqYEsxE&list=ULrJ2tmqRkiCM

Position yourself in the industry http://www.pinterest.com/pin/237213105346371408/

There are many topics that you need to master. Your Strategic Management Toolkit will be brimming with intellectual assets.

Here’s an overview of these Strategic Management Tools:

Strategy Toolkit Mindmap: http://www.xmind.net/share/socialmediaevie/strategy-tools-1/ #xmind

Using XMind for Mind Mapping

Using XMind for Mind Mapping (Photo credit: Wesley Fryer)

In order to win, you must maintain a positive digital reputation. You will build this with another toolkit. Here are the components of your Social Media toolkit:

Social MediaToolkit Mindmap: http://www.xmind.net/share/socialmediaevie/create-and-promote-a-wordpress-blog-1/ #xmind

Click on the “Follow me on Pinterest” You will find “Business Boards” that highlight some of the concepts that we cover in class: http://pinterest.com/socialmediaevie/

When you click on a pin, they generally take you to more in-depth information about the concept.

Here’s an outstanding Introduction to Strategy Video for you to watch:

http://youtu.be/rJ2tmqRkiCM

Conduct a SWOT Analysis http://www.pinterest.com/pin/237213105343137805/

Create a Boston Consulting Group Matrix:http://youtu.be/vNoI3yOE-os

Start with a Mission:

http://www.pinterest.com/socialmediaevie/mission/

Try this exercise:

“Vision-Craft-O-Meter[1]

Use this easy and humorous class-opener to craft a vision statement for any organization.  The point here is that its easy to come up with some blather of a vision statement, but it is meaningless if it not backed up by executives actions and widely shared and understood by all members the organization and its external stakeholders.

 

OUR VISION IS TO BE A:

A) growing; leading; worldclass; premier; benchmark; first-mover

ORGANIZATION THAT PROVIDES

B) dynamic; innovative; creative; breathtaking; cost-effective; diverse; high-quality

C) products; services; people; products and services; people and services

TO

D) thrill our shareholders; delight our customers; enrich our stakeholders’ lives

IN THE

E) hyper-competitive; emerging; growing; attractive; thriving

F) business-solutions; health-solutions; consumer-solutions; financial-solutions; environmental-solutions

MARKETPLACE.”

Set your objectives:

revenue

profit

productivity/efficiency

Market share

globalization

on-line presence/social media

favorable financial performance

manage debt appropriately

Enhance liquidity

more favorable brand image

maximize shareholder wealth

enhance customer satisfaction

behave in a socially responsible/ethical manner

Identify your strategies: Using the Ansoff Matrix

http://youtu.be/AORoMxgp428

http://www.pinterest.com/pin/237213105346371402/

http://www.pinterest.com/pin/237213105346371400/

Select your entry mode:

http://www.pinterest.com/pin/237213105346371423/

Establish an organizational structure:

Apple $156,508,000,000 comes from: Macs, iPod, iPhone, Music Related, Peripherals, Software and Services

http://www.pinterest.com/pin/237213105344405444/

Steve Jobs talks about how Apple is structured: http://youtu.be/f60dheI4ARg

Richard Rumelt talks about business strategy:

http://www.youtube.com/watch?v=43kZDnyDXOc&feature=share&list=PL4ED265C0A251C2EF&index=5

Hard Rock Cafe strategy: http://www.youtube.com/watch?v=ZvF_lH9NRqM&list=PL4ED265C0A251C2EF&feature=share&index=6

 


[1] Adapted from Stewart, T. 1996. A refreshing change: Vision statements that make sense.  Fortune, 134: 6: 195-197.

 

 

 

 

 

Dr. EveAnn Lovero teaches Strategic Management and International Business at Lewis University. She writes Travel Guides at www.vino-con-vista.com

It's a Wonderful World (1939 film)

It’s a Wonderful World (1939 film) (Photo credit: Wikipedia)

Create your Strategic Management Project Template for your Online Class

English: Figure 10: SWOT-Analysis of the organ...

English: Figure 10: SWOT-Analysis of the organic business idea. Belongs to The Organic Business Guide. (Photo credit: Wikipedia)

Swot analysis

Swot analysis (Photo credit: Wikipedia)

SWOT analysis diagram in English language. Fra...

SWOT analysis diagram in English language. Français : Matrice SWOT en anglais. (Photo credit: Wikipedia)

English: Diagram of DuPont analysis of return ...

English: Diagram of DuPont analysis of return on equity. ‪Norsk (bokmål)‬: Diagram over DuPont-analyse av kapitalrentabilitet. (Photo credit: Wikipedia)

1. Create Google Drive Doc using table of contents page.

GUIDELINES FOR WRITTEN CASE ANALYSIS

 

I.    DIAGNOSIS – Current situation: summary of factors which contribute to present status

  1. Mission
  2. Objectives
  3. Corporate Strategy
  4. Policies
    1.  Diversity
    2.  Ethical Standards/code of Conduct
    3.  Suppliers
    4.  HR

 

5. Strategic Managers and Board
1.  Sr. Level Executives
2.  Corporate governance
a.  Responsibilities
b.  Board Committees
c.  Director Compensation

 

6. Generic Industry Type:
1.  Fragmented, Maturing, Energizing, Declining
2.  Industry Economic Characteristics (p.53)

3. Generic Industry Type

Industry definition
Market size and growth rate
Key rivals & market share
Scope of competitive rivalry
Concentration vs. fragmentation
Number of buyers
Demand determinants
Degree of product differentiation
Product innovation
Key success factors
Supply/demand conditions
Analysis of stage in life cycle
Pace of technological change
Vertical integration
Economies of scale
Learning/experience curve effects
Barriers to entry
Regulation/deregulation
Globalization
Trends

 

 

 

 

 

 

 

 

 

 

 

 

7. Organization Structure:

  1. type—functional, divisional, matrix, SBU
  2. advantages and disadvantages discussed in class

 

8. Financial Analysis / Altman & DuPont
1.  Graphs
2.  Altman
3.  Tobin’s Q
4.  DuPont Analysis

5. Stock Analysis

Compare your performance over time using the “Max Graph” from Yahoo Finance,

 

9. SWOT Analysis (See Handout)

  1. Internal (strengths, weaknesses)
  2. External (Opportunities, Threats)

 

10. Market Share Data Graphs

 

 

II.                      FOCAL POINTS FOR ACTION: Identify problems & issues which need to be resolved.  Analyze your company’s 10K before performing this step.

  1. Short Range
  2. Long Range

 

 

 

 

 

 

 

 

 

Go to www.lewisu.edu click on Academic, then Library, then On-line Databases

Go to Databases and type in your Company’s name and Industry to find helpful information.

 

 

 

 

Conduct Company and Industry Research and Analysis Internationally

 

Swot analysis image

Swot analysis image (Photo credit: Wikipedia)

SWOT analysis diagram in English language. Fra...

SWOT analysis diagram in English language. Français : Matrice SWOT en anglais. (Photo credit: Wikipedia)

Your first assignment will involve industry and company research.
I will give you a table that you will complete and turn in on the second class meeting. This project will be completed using Google Drive.

Go to EBSCO and search PepsiCo in Company Profile. Then search “Global Food Products” in Industry Profile. Go to IBIS and search “Soft Drinks”.

Go to Lexis-Nexis search Company directories and Profiles to find Worldscope and Hoover’s. Then go to Proquest-modify the search and go to advanced search add “strategy and search recent 12 months..

Strategic direction requires insights in the form of market intelligence, market size, market growth rates, competitor analysis and other key variables. Industry reports are available for: Telecommunications, Healthcare, Energy and many other industries.

Your Research will be an organized effort to gather information about markets, customers and industries. It is a crucial component of our class. This exercise will offer important information that will allow you to identify and analyze the market and the competition.

You will systematically gather and interpret information about your organization. You will harness the power of research during the semester to support your decision-making and presentation efforts.

Watch these videos: https://www.youtube.com/watch?v=TD7WSLeQtVw

ProQuest search results

ProQuest search results (Photo credit: The Shifted Librarian)

Hoover's Logo

Hoover’s Logo (Photo credit: Wikipedia)

Your research will be conducted using the Library Databases. You will also create a stock portfolio on Yahoo Finance. At the end of the semester, you will submit your data in a “Market Study” Binder.

For example, go to the website “academics” and click on “library”. Then go to EBSCO and click on Business Searching Interface. Type in “Global Wine Industry” and you will find the MarketLine pdf report. It includes the following information that you need to know:

Executive summary, market overview, market data, market segmentation, market outlook, five forces analysis and leading companies.

Here’s an EBSCO list of some of the industries that we will cover in Class with industry participants:

Global Spirits: Diageo

Global Electronics: LG, Toshiba,

Global Hypermarkets and Supercenters and GLobal Food Retail: Metro, Carrefour and Tesco

Global Household Durables: IKEA

Global Consumer Electronics: Phillips, Sony

Global Automobile Manufacturers: Toyota, Hyundai, Honda, Volkswagon, Daimler

Global Food Retail:

Global New Cars

Global Semiconductors

Global Oil and Gas: Gazprom, Petrobras

Global Audio and Video Equipment: Samsung

Global Telecommunications: Telefonica

Global Pharma: Novartis

Global Metals and Mining: Rio Tinto

 

 

If you search “Global Air Transportation”, the link will look like: http://web.b.ebscohost.com.ezproxy.lewisu.edu/bsi/pdfviewer/pdfviewer?vid=10&sid=cf49c074-c7b2-4e02-84cc-af4bdc2b60e5%40sessionmgr114&hid=125

Search “Global New Cars”:

http://web.a.ebscohost.com.ezproxy.lewisu.edu/bsi/pdfviewer/pdfviewer?vid=7&sid=7a83dc31-a7fa-406f-b0a5-8f5b99241ec8%40sessionmgr4004&hid=4106

If you search “Global Precious Metals and Mining”:

http://web.a.ebscohost.com.ezproxy.lewisu.edu/bsi/pdfviewer/pdfviewer?vid=10&sid=18d85859-83d2-423d-9c79-77ecb3216c92%40sessionmgr4004&hid=4106

English: Figure 10: SWOT-Analysis of the organ...

English: Figure 10: SWOT-Analysis of the organic business idea. Belongs to The Organic Business Guide. (Photo credit: Wikipedia)

You can also search for a “company profile” that will provide the following information: company overview, key facts, business description, history, key employee biographies, major products and services, revenue analysis, SWOT analysis, top competitors, company view and locations and subsidiaries.

Swot analysis

Swot analysis (Photo credit: Wikipedia)

Then you will search the Lexis Nexis database for companies. Click on “Company Profile”. Enter the company name and put a check in the Worldscope box. Enter search and you will get a company description, key financials, income statement information, information regarding foreign assets and income margin. The “Ratio” section will provide three years of ratios for your company. At the end of the report, you will find a geographic sales breakdown and sales and operating income by business unit.

Use the snipping tool to enter some of the diagrams into your industry table. To find this tool, go to all programs, accessories and “snipping tool”.

If you were researching Apple, these are some of the resources that you would use to conduct an industry analysis:

Angel with mobile phone

Angel with mobile phone (Photo credit: Akbar Sim)

EuroMonitor Passport: Mobile Phones in the US

Various cellular phones from the last decade

Various cellular phones from the last decade (Photo credit: Wikipedia)

IBIS World: Computer Pheripheral Manufacturing #33411B; Computer Manufacturing #31141A; Operating Systems and Productivity Software #51121A; and Internet Publishing and Broadcasting in the US #51913B

In Lexis Nexis, under company profile search Hoover’s, Disclosure and Worldscope

In EBSCO, find Company Profiles:  look at the SWOT Analysis, Key Executives, and Company overview. Gather global information in the “Global Industry Reports” including: Global Computer and Electronics Retail; Global Mobile Phones and Global Computer Storage and Peripherals.

English: Yerba Buena Center for the Arts (YBCA...

English: Yerba Buena Center for the Arts (YBCA) one week before iPad 2 announcement. (Photo credit: Wikipedia)

Get the Company’s 10K and look for: Company background, business strategy, products, risk factors, stock performance and “Management” discussion of financial issues and segment operating performance. Pay attention to the Corporate Governance Issues.

Fo to Yahoo Finance and generate a Stock Portfolio. Include as many competitors as possible so that you can get a customized daily news bulletin. Buy 100 shares of stock in each company.

Go to the website and get the annual report under “Investor Relations

This plan was created for the Wikimedia Founda...

This plan was created for the Wikimedia Foundation’s strategic planning process and will be used during that process. (Photo credit: Wikipedia)

Use Proquest to find articles on strategic alliances, joint ventures, acquisitions and divestitures.

If you wanted to conduct research on a global food company like Sara Lee; look at some of the following reports:

IBIS Meat, Beef and Poultry Processing #31161

Baking Mix and Prepared Food Manufacturing #31181

file

file (Photo credit: Wikipedia)

Cookie, Cracker and Pasta Production in the US #31182

Coffee Production in the US #31192a

For Global information, use:

1. Packaged Foods and Meat;

2. Global Meat , Fish and Poultry

3. Global Hot Drinks

4. Global Frozen Food

5. Global Bread and Rolls

Here’s an excellent resource:

http://globaledge.msu.edu/industries/food-and-beverage

When you have gathered all of your data, you can complete your Team SWOT Analysis and start your TOWS Matrix.

Use these templates:

1. This worksheet will help you visually organize information about the external environment:

http://www.mindtools.com/pages/article/worksheets/PESTAnalysisWorksheet.pdf

2. After completing a SWOT analysis, you will engage in a matching and converting process using a TOWS Matrix. Matching strengths to opportunities to leverage competitive advantages. Develope conversion strategies to convert or mitigate weaknesses or threats by dinding new markets, diversifying or developing new products. Generate a TOWS Matrix for your project using this format:

http://www.mindtools.com/pages/article/worksheets/TOWSAnalysisWorksheet.pdf

3. Generate a Porter’s Model Worksheet:

http://www.mindtools.com/pages/article/worksheets/PortersFiveForcesWorksheet.pdf

Here’s a Rudyard Kipling Quote to think about:

“I keep six honest serving , they taught me all I knew. Their names were What, Why, When, How , Where and Who.”

Figure 10: SWOT-Analysis of the organic busine...

Figure 10: SWOT-Analysis of the organic business idea. Belongs to The Organic Business Guide. (Photo credit: Wikipedia)

Dr. EveAnn Lovero teaches Strategic Management and International Business at Lewis University in Illinois.

You can research companies like:
Nestle Switzerland Food Producers 206,440 7.40

Novartis (REGD) Switzerland Pharmaceuticals & Biotechnology 188,471 6.76

Roche Hldgs (GENUS) Switzerland Pharmaceuticals & Biotechnology 176,552 6.33

HSBC Hldgs UK Banks 157,075 5.63

Bayer AG Germany Chemicals 103,823 3.72

Sanofi France Pharmaceuticals & Biotechnology 99,669 3.57

Royal Dutch Shell A UK Oil & Gas Producers 98,243 3.52

GlaxoSmithKline UK Pharmaceuticals & Biotechnology 90,773 3.25

Banco Santander Spain Banks 89,312 3.20

Vodafone Group UK Mobile Telecommunications 86,207 3.09
li

Undergrad Stategic Chapter 5: Strategy Options

Schematic representation of vertical and horiz...

Schematic representation of vertical and horizontal integration in the automotive industry (Photo credit: Wikipedia)

World locations of Fiat Group automobile manuf...

World locations of Fiat Group automobile manufacturing sites (own,license and joint ventures). (Photo credit: Wikipedia)

Diversification (marketing strategy)

Diversification (marketing strategy) (Photo credit: Wikipedia)

Chapter 5 – Strategies in Action

 

Chapter 5 provides basic guidelines for when various strategy options have historically been most effective.

These are the basic 11 types of strategies for a manufacturer of steel office desks:

 

  • Forward integration:  opens retail stores to sell its desks.
  • Backward integration:  purchases a steel mill to control its supply of steel at a reasonable price.
  • Horizontal integration:  purchases a competing desk manufacturer.
  • Market Penetration:  launches a loyalty program to reward a company that buys a large number of desks for their many global subsidiaries.
  • Market Development: begins to offer desks in India, a new geographic market area for the company.
  • Product Development:  develops a special desk with a steel cabinet for electronics.
  • Related Diversification:  the company will now manufacture and sell steel chairs.
  • Unrelated Diversification:  the company will offer a credit card for its customers.
  • Retrenchment: the company is cutting jobs in 20 markets in the west.
  • Divestiture:  the company is selling off its plastics division.
  • Liquidation:  the company is selling off the equipment previously used in its now defunct plastics division.

    English: A desk for use on my wikipedia userpage.

    English: A desk for use on my wikipedia userpage. (Photo credit: Wikipedia)

Schematic representation of vertical and horiz...

Schematic representation of vertical and horizontal integration in the automotive industry (Photo credit: Wikipedia)

This chapter describes Porter’s generic strategies and other important strategy options inluding: outsourcing, reshoring, first-mover advantages, joint ventures, and partnering in the context of strategic planning.

Learning Objectives:

 

1.         Define and discuss secondary buyouts and dividend recapitalizations.

2.         Identify the benefits and drawbacks of merging with another firm.

3.         Discuss the value of establishing long-term objectives.

4.         Identify 16 types of business strategies.

5.         Identify numerous examples of organizations pursuing different types of strategies.

6.         Discuss guidelines when particular strategies are most appropriate to pursue.

7.         Discuss Porter’s five generic strategies.

8.         Describe strategic management in nonprofit, governmental, and small organizations.

9.         Discuss the nature and role of joint ventures in strategic planning.

10.       Compare and contrast financial with strategic objectives.

11.       Discuss the levels of strategies in large versus small firms.

12.       Explain the first mover advantages concept.

13.       Discuss recent trends in outsourcing and reshoring.

Complete the Assurance of Learning Exercise #5C and tweet your answers to: What Strategies should PepsiCo pursue in 2014?

 

English: Porter Generic Strategies

English: Porter Generic Strategies (Photo credit: Wikipedia)