Management%20strategies

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Management strategies
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The roots of strategy

• 2000 year history strategy derived from the
  Greek word stratcgos stratus (meaning army) and
  ago (meaning leading/moving). The Greeks first
  used the word to describe managing military
  forces.
• Today
• Strategy refers to the steps a manager must take
  to reach objectives or to accomplish plans.

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Strategic management

• Defined Strategic management consists of the
  analysis, decisions, and actions an organization
  undertakes in order to create and sustain
  competitive advantages.

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Three Levels of Strategy

• 1st level - Corporate Strategies - address the
  broad needs of the industry and are generally
  tied to the mission statement of the company.
• What is a Mission Statement?
• Mission Statement Describes why an organization
  is operating. Usually business oriented but may
  also take on a social responsibility as well.
• Vision identifies where the organization wants
  or intends to be in the future.

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Mission Statements

• NBA Mission Statement

• The Mission of the Pro Football Hall of Fame is
• To honor, preserve, educate and promote. . .

• NBA Mission Statement

• To honor individuals who have made outstanding
  contributions to professional football  To
  preserve professional footballs historic
  documents and artifacts  To educate the public
  regarding the origin, development and growth of
  professional football as an important part of
  American culture To promote the positive values
  of the sport

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VS
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Assess

• You are Senior Management within a recovery
  organization that has been established to address
  the recovery efforts of the Jersey Shore after
  Hurricane Sandy.
• Write a Mission Statement that describes the
  purpose and vision of your organization.
• Features of a Mission Statement
• Mission must be feasible and attainable. It
  should be possible to achieve it.
• Mission should be clear enough so that any action
  can be taken.
• It should be inspiring for the management, staff
  and society at large.
• It should be precise enough, i.e., it should be
  neither too broad nor too narrow.
• It should be unique and distinctive to leave an
  impact in everyones mind.
• It should be analytical, it should analyze the
  key components of the strategy.
• It should be credible, i.e., all stakeholders
  should be able to believe it.
• What type of Corporate Strategy would your
  organization use. Reference your Mission
  Statement.

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Corporate Strategies

• 4 specific corporate strategies
• Growth help the organization decide the amount
  and direction of growth.
• Stability these strategies are used when an
  organization is satisfied with their performance
• Defensive retreat to what you know best.
• Combination

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Business Strategies

• Narrower in scope than corporate strategies.
  Focus on a specific business (Food venues at
  sports arenas)
• Examples of business strategies
• Cost Leadership deliver the product or service
  more cheaply than competitors
• Differentiation Be unique in product or service
  delivery
• Focus Concentrate on a particular market
  segment and surround it with a quality product or
  service
• A year after the storm

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Assignment

• Check out the Disney Web site and search for
  answers to the following questions.
• As a teenager who grew up watching Disney shows,
  what do you think of the animation graphics?
  When answering reference works of other animation
  companies.
• What interactive features are on the website?
  (list 3)
• Mission Statement of Disney
• "The mission of The Walt Disney Company is to be
  one of the world's leading producers and
  providers of entertainment and information. Using
  our portfolio of brands to differentiate our
  content, services and consumer products, we seek
  to develop the most creative, innovative and
  profitable entertainment experiences and related
  products in the world."
• Based on the Mission Statement above what
  Corporate Strategy do you think Disney is using?
  Support your answer by referencing segments of
  their Mission Statement.
• Describe the business strategy or strategies you
  think Disney uses to reach the childrens market.
  
• Describe the business strategy or strategies
  Disney uses to reach the parents market.

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Extreme Sports

• Bossaball
• Crashed Ice
• Kronum

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Functional strategies

• Govern an organizations day-to-day operations.
  Relate to the functions of a business, such as
  marketing, production, and finance. This type of
  strategy is directly tied to the strategies
  constructed at the corporate and business levels.
• Short-term in nature less than one year
• Known as the most important strategies because of
  their need for timeliness and flexibility.

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Strategy Formulation vs Strategy Implementation
Strategy Formulation Strategy Implementation
Strategy Formulation includes planning and decision-making involved in developing organizations strategic goals and plans. Strategy implementation involves all those means related to executing the strategic plans.
In short, Strategy Formulation is placing the Forces before the action. In short, Strategy Implementation is managing forces during the action.
Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making. Strategic Implementation is mainly an Administrative Task based on strategic and operational decisions.
Strategy Formulation emphasizes on effectiveness Strategy Implementation emphasizes on efficiency.
Strategy Formulation is a rational process. Strategy Implementation is basically an operational process.
Strategy Formulation requires co-ordination amoung few individuals. Strategy Implementation requires co-ordination among many individuals.
Strategy Formulation requires a great deal of initiative and logical skills. Strategy Implementation requires specific motivational and leadership traits.
Strategic Formulation precedes Strategy Implementation. Strategy Implementation follows Strategy Formulation.
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Strategic management process

• Development corporate and business strategies
  are developed
• Policies and Rules
• Policies guidelines to make decisions regarding
  specific recurring situations (doping, specific
  wear)
• Rules direction for conduct leave little room
  for imagination (rules governing your game)

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Strategic management process

• Environmental Analysis
• External Environment everything that lies
  outside of an organizations control.
• Government regulations, economy, competition,
  technology, global affairs and society
• Internal Environment factors that are under the
  control of the organization
• Collection of data, completion of reports,
  employees not care, falsification of reports
• BMX Extreme Sport

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Strategic planning tools

• Environmental Scanning a planning tool that
  helps managers identify critical events from the
  external environment that will have a direct
  impact on decision making. (events may be known
  or unknown)
• SEM has 6 major external environments
• Demographic trends
• Economic trends
• Political trends
• Competitive Trends
• Technological Trends
• Cultural and lifestyle Trends

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Strategic management tools

• SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
• Benchmarking

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Action and review

• Action Phase
• Organizational Structure must be in place
• Short-range goals must be constructed and
  implemented
• Construction of Functional strategies
• Review Phase
• Key to accomplishing strategies
• Good managers anticipate problems, develop
  contingency plans, and meet obstacles head on.

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Assignment

• Situation You and your partner have followed
  and completed the strategic management process in
  the development of your new extreme sport.
  Explain how you would complete the final 2 phases
  of the strategic management process.
• Implement How will you introduce your sport to
  the world? What channels will you follow to get
  the sport out to the target audience of
  participants and viewers? What are your short
  range financial goals? How will you market the
  extreme sport?
• Contingency Plan 6 months after you have
  introduced your sport you are falling short in
  your financial goals, number of participants and
  viewers. Write a contingency plan that will
  address these issues.

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Review of Strategic management process

• 5 steps
• Formulate the organizations mission or purpose
• Describe the business market that the
  organization will pursue
• Set objectives for meeting the needs of this
  market.
• Create and implement strategies to address market
  needs better than competitors.
• Develop contingency (backup) plans for any needed
  adjustments.

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Assignment

• Create a collage with pictures and explanatory
  text that displays an environmental scan of
  positive and negative forces that might impact
  your favorite bands admission into a Music Hall
  of Fame.
• Requirements
• Minimum of 8 pictures in collage
• Minimum of 4 external environments
• Text explaining external environments used
• Demographic trends
• Economic trends
• Political trends
• Competitive Trends
• Technological Trends
• Cultural and lifestyle Trends

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Do Now

• Contingency Plan 6 months after you have
  introduced your sport you are falling short in
  your financial goals, number of participants and
  viewers. Write a contingency plan that will
  address these issues.

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Advantages of strategic management

1. Prevents problems before they happen
2. Reinforces the strength of group decision making
3. Managers and employees tend to become empowered
   with decision-making opportunities
4. Strategically managed firms usually do not have
   glaring weaknesses
5. The entire organization tends to react more
   rapidly to new opportunities and environmental
   changes.

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Risks of strategic management

1. Discipline needed in implementing strategic
   management may not be easy to accomplish
2. Strategic managers must be cautious o f making
   extravagant promises
3. Managers and employees may expect immediate
   rewards for their roles in the strategic
   management process