By: LAI VAN TAI

We are living in a constantly

changing world
 Power has shifted to the customer
 Size is not necessarily an advantage
 Technology is ever more copied
 Accelerating rates of change
 Constant stream of new competitors
 Globalization of business
 Changing nature of the workforce
 Increase in temporary jobs
 Diverse workforce
 Customer satisfaction is critical
 Large firms are restructuring
 Reengineering of all processes
 Concentration on core competencies
 Work is defined in terms of tasks
 Empowerment of employees
 Strategic flexibility
 Characteristics 20th century 21st century

Organization The pyramid The web or network

Focus Internal External

Style Structured Flexible

Source of strength Stability Change

Resources Atoms – physical assets Bits-information

Products Mass production Mass customization

Reach Domestic Global

Improvement Incremental Revolutionary

Job Expectation Security Personal growth

 “It is not the strongest of the species that
survives, nor the most intelligent; it is the
one that is most adaptable to change.”
 Corporate strategy is the pattern of major
objectives, purposes or goals and essential
policies or plans for achieving those goals.

 Stated in such a way as to define what

business the company is in or is to be in and
the kind of company it is or is to be.
 Lynch
 The determination of the long term goals and objectives of
the enterprise (Alfred Chandler).

 Strategy is the central reason why the firms success or fail

(Porter)

 Corporate strategy addresses what business(es) and Industry

(ies) the company should be in (Wheelen)

 Business strategy address how the company and its units can
compete in its businesses and industries (Wheelen)

 Strategy is the creation of unique and valuable position

involving a different set of activities.
Strategic management

The set of decisions and actions the result in

the Foundation and Implementation of plan
designed to achieve an organization’s
objectives
 VISION IN THE FUTURE AND SET THE

Where is the organization now?

NEAR GOALS


 If no changes are made, where will the

organization be in one year? Two years?
Five years? Ten years? Are the answers
acceptable?

 If the answers are not acceptable, what

specific actions should management
undertake? What are the risks and payoffs?
 Internal Designing
Assessment Strategic
option
Strategic Strategy Implement
Strategic
thinking formulation the chosen
control
strategies
External
Strategic
Assessment
choices
(Macro &
Industry
Analysis)
 Strategic Management Model

Environmental Strategy Strategy Evaluation

Scanning Formulation Implementation and Control
Mission
External
Reason for
Societal
existence
Environment Objectives
General Forces
What results
to
Task Strategies
accomplish
Environment
by when Plan to
Industry Analysis
achieve the Policies
mission &
Internal objectives Broad
guidelines for Programs
Structure decision Process
Chain of Command making Activities to monitor
needed to performance
Budgets
Culture accomplish and take
Beliefs, Expectations, a plan corrective
Cost of the
Values action
programs
Procedures
Resources
Sequence
Assets, Skills
of steps
Competencies,
needed to
Knowledge do the job Performance

Feedback/Learning
 Strategic issues require top management decisions
 Strategic issues are future oriented
 Strategic issues affect the company’s long term
prosperity
 Strategic issues have multifunctional or multi-
business consequences
 Strategic issues require the investigation of the
company’s external environment
 Strategic issues require large amounts of the
company’s resources
 Strategic issue require the consent of the
stakeholders
 Evaluate current performance results
 Review corporate governance
 Scan and assess the external environment
 Scan and assess the internal environment
 Analyze strategic factors
 Generate, evaluate and select the best alternate strategy
 Implement the selected strategy
 Evaluate the implemented strategy

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 Involves the entire organization
 Concerned with survival of firm
 Concerned with creation of value added
 Directs relationship with environment
 Central to development of sustainable
advantage.

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 Only doing strategic planning once a year
 Not measuring performance to the strategic plan
 Continuing to do what was successful in the past
 Not concentrating enough on the competition
 Underestimating the magnitude of the task

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 Overestimating capabilities
 Relying on size and resources instead of speed
and mobility
 Being unprepared to fight
 Following traditional rather that new and creative
strategies
 Choosing the wrong enemy at the wrong time
and wrong place

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 Not retreating quickly enough
 Over relying on formulas and models
 Strategy was too focused
◦ Costs
◦ Expansion
◦ Innovation
◦ Selling

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 Always firefighting
 Waste of time
 Too expensive
 Content with successes and overconfidence
 Fear of failure of the unknown

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 1950s Budgeting
 1960s Long range planning
 1970s Corporate strategy
 1980s Competitive advantage
 1990s Strategic innovation
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 Business is about winning battles in the
marketplace to obtain a superior profit
position and market share.

 If you do not fight, you do not win. If you do

not win, you lose.

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 Strategy must be consistent with the firm’s
goals and values, with the external
environment, with the resources and
capabilities of the firm, and with the
organization and systems of the firm.

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 The fundamental, unique purpose that sets the
company apart from other firms
 Identifies the scope of the company's operations in
terms of products offered and markets served.
 The firm's philosophy about how it does business
and treats its employees.

– Purpose or reason for the organization’s existence

– Promotes shared expectations among employees
– Communicates public image important to stakeholders
– Who we are, what we do, How we do a different thing
 Define what the organization is
 Define what the organization aspires to be
 Limited to exclude some ventures
 Broad enough to allow for creative growth
 Distinguish the firm from all others
 Stated clearly so that it is understood by all
employees

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 What business are we in now?
 What business do we want to be in?
 What will our customers want in the future?
 What are the expectations of our stakeholders?
 Who will be our future competitors? Suppliers?
Partners?
 How should we compete?
 How will technology affect our business?

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 Key Market: To offer the fast food
customers worldwide
 Contribution: food prepared in the same
high quality manner
worldwide, tasty and
reasonably priced
 Distinction: delivered in a consistent, low
key décor and friendly
atmosphere.

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 Key market: To provide any customer

 Contribution: a means of moving people

and things up, down, and
sideways over a short distance

 Distinction: with higher reliability than

any similar enterprise in
the world.

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1. Does the statement describe an inspiring purpose that
avoids playing to the selfish interests of stakeholders?

2. Does the statement describe the company’s responsibility

to its stakeholders?

3. Does the statement define a business domain and explain

why it is attractive?

4. Does the statement describe the strategic positioning that

the company prefers in a way that helps to identify the
sort of competitive advantage it will look for?

5. Does the statement identify values that link with the

organization’s purpose and act as beliefs with which
employees can feel proud?
6. Do the values resonate with and reinforce the
organization’s strategy?

7. Does the statement describe important behavior

standards that serve as beacons of the strategy and the
values?

8. Are the behavior standards described in a way that

enables individual employees to judge whether they are
behaving correctly?

9. Does the statement give a portrait of the company,

capturing the culture of the organization?

10. Is the statement easy to read?

We are living in a constantly
changing world !!!
42
 A conception of a desirable future
 Describes what the organization like to
become

 When is a vision especially important?

• Company needing a sense of direction
• In time of trouble; big change necessary
• Company currently successful, but basis for
success eroding
 Prevents managers from moving in too many
directions
 Helps them to be proactive
 Managers must know where and what the firm is now
 Gives a view of where it must go
 Forces managers o think of new directions to survive.

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 A vision is an image of where the company
wishes to be in the future and to which the
company may never reach.

 A mission is the purpose or reason for the

corporation’s existence and defines the
boundaries of the business.

Mission is more about why we exist,

Vision is more about the road to the future
Mission
"Is to be our customer's first choice, when it
comes to, top quality products, outstanding
service / cleanness and great value for money "

Vision
"To be the best quick service restaurant
experience".
Being the best means providing outstanding quality, service, cleanliness, and
value, so that we make every customer in every restaurant smile.
 Mission
“to enable people and businesses throughout the
world to realize their full potential”

 Vision
“to create innovative technology that is accessible to
everyone and that adapts to each person's needs.
Accessible technology eliminates barriers for
people with disabilities and it enables individuals to
take full advantage of their capabilities"
 Begins with thinking strategically
◦ About a firm’s future makeup
◦ Forming vision of a firm’s future

 Task is to
◦ Inject a sense of purpose into firm’s activities
◦ Provide long-term direction
◦ Give a firm strong identity
◦ Decide who we are, what we do and where we are
going
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 Financial – objectives that relate to improving
a firm’s financial performance.

 Strategic – outcomes that result in greater

competitiveness and stronger lng term
performance.

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 Objectives are performance targets to which
the firm can be measured.
 Profitability
 Efficiency
 Growth
 Shareholder wealth
 Utilization of resources
 Reputation
 Market leadership
 Technological leadership
 Survival

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 Specific
 Measurable
 Must stretch the organization
 Achievable and realistic
 Acceptable to shareholders
 Consistent with strategy
 Have assigned responsibilities and due
dates

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 Converts mission into performance targets
 Creates yardsticks to track performance
 Establishes performance goals requiring stretch
 Pushes firm to be inventive, intentional and
forward
 Guards against complacency, drift, internal
confusion and status quo performance

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 Prescriptive – strategy is a linear and
rational process – starts with the end
objectives.

 Emergent – strategy is emerging, adapting

to human needs and continuing to develop
over time – end objectives are not clear.

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 Goals that are simple, consistent and long
term
 Profound understanding of the competitive
environment
 Understanding of resources and capabilities
 Effective implementation and execution
 Communicated and understood by all

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 The end for
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