1、簡(jiǎn)介Strategic ManagementProfessor Ph.D. Qin Yuanjian(秦遠(yuǎn)建)Management SchoolWuhan University of Technology武漢理工大學(xué)管理學(xué)院P.C:430070 H)Mobil Phone:71108129戰(zhàn) 略 管 理Chapter 1: An Introduction To Strategic ManagementSTRATEGYSection 1:What is StrategyIn Greece: Strategos means arts and science that a

2、 general command and direct army. In Ancient ChinaBesiege Wei rescue ZhaoPretend to advance along one path while secretly going along another; do one thing under cover of another.Classification of StrategyMacro levelEnterprise levelNational EconomyLocal EconomyIndustrial EconomyCorporate StrategySBU

3、s StrategyFunctional StrategyThe Three Levels of StrategyCorporateSBUsFunctionsWhich businesses to be in？How to run them?The way a company creates value through the configuration and coordination of its multi-market activities .Corporate Strategy is?Address the Questions？How to achieve sustainable c

4、ompetitive advantage in given product/marketWhere should we compete？Which markets， and which segments should we concentrate on？ Competitive StrategyWhat products should we compete with？ How will we gain sustainable competitive advantage in these chosen markets？ ?123is concerned with interpreting the

5、 role of the function or department in delivering the competitive strategy Functional strategyMarketing strategyFinancial strategyPersonnel strategyAnd so forthEvery Competitive Strategy Can be Translated into Congruent X StrategiesSection 2: Definitions of StrategyKenneth R.Andrews H.I.Ansoff H.Min

6、tzberg Our definitionKenneth RAndrews DefinitionThe Concept of Corporate Strategy, 1971Strategy is target, intent, purpose, and the model of which a firm formulates main policies and plan in order to achieving the target. The model defines the business scope which the firm is doing, and should do. T

7、he model also defines the business type which the firm is in, and should be in.H.Igor.Ansoff DefinitionCorporate Strategy, 1965The strategy is a common business line throughout the firms business, products and market. It defines the basic nature of the business that a firm is doing, and plans to do.

8、See MoreFour Elements of StrategyMarket and ProductsGrowth VectorCompetitive AdvantageSynergy:Total outcome are more than sum of all parts.Understanding SynergySupposeOiCost of Product i Si Sales of Product i(ROI)-Return on InvestmentSuppose ROI of Company i product Pi is as followROI = Si - OiIiST

9、= S1 + S2 + S3 + + SnOT = O1 + O2 + O3 + + OnIT = I1 + I2 + I3 + + In(ROI)T = ST - OTITSS = STIs ITOs OTScale Effect(ROI)S (ROI)T ST，OT，IT is Sum of Small companys sales, cost and investmentSs，Os，Is Sales, cost and investment of big firmSupposeType of SynergySales Synergy: from share brand,channelOp

10、erating SynergyInvestment SynergyManagement SynergyH.Mintzbergs DefinitionThe Rise and Fall of Strategic Planning, 1994PlanPloyPatternPositionPerspective Definition of StrategyA strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a

11、competitive advantage.Section 3: Strategic Management ProcessStrategy FormulationStrategy ImplementationSee DetailEnvironmentConditionStrategic IntentStrategic MissionStrategy FormulationStrategy ImplementationCorporate Level StrategyBusiness Level StrategyOrganizational Structure and ControlsCorpor

12、ate GovernanceStrategic Competitiveness Above-Average ReturnsfeedbackStrategic Management Process ChartPerspectives and Enterprise CultureVisionMissionGoalsSWOTStrategy FormulationAlternativesSelectionStrategicPlanStrategy Imple-mentationStrategic ControlFeedback PerformanceStrategic ManagementChapt

13、er 1 An Introduction to Corporate StrategyChapter 2 The External EnvironmentChapter 3 The Internal ConditionChapter 4 Corporate Level StrategyChapter 5 Acquisition and Restructuring StrategyChapter 6 Business Level Strategy Chapter 7 Cooperative StrategyChapter 8 Corporate GovernanceChapter 9 Organi

14、zational Structure and ControlsChapter 10 Corporate Entrepreneurship and Innovation THE NEED FOR STRATEGYChapter1GlobalizationCompetitionPressure to ChangePhysical resourcesHuman resourcesInformation resourcesWorld marketCore businessesOutsourcingBPRTechnology and Technological ChangesRapid technolo

15、gical changeRapid technology diffusionsDramatic changes in information technologiesIncreasing importance of knowledgeThe Competitive LandscapeThe Global EconomyPeople,goods,services, and ideas move freely across geographic bordersSignificant opportunities emerge in multiple global marketsMarkets and

16、 Industries become more internationalizedTwo modelsA firm is viewed as a bundle of market activities and a bundle of resources.(in the lesson)Market activities are understood through application of the I/O model.The development and effective use of a firms resources, capabilities, and competencies i

17、s understood through application of the resources-based model.Combination of the two models, firms can increase the probability of achieving strategic competitiveness and earning above-average returns(AARs).The I/O Model of AARsThe external environment was thought to be the primary determinant of st

18、rategies firms selected to be successful.Industry chosen has a stronger influence on the firms performance than do the choices managers make inside their organizations.The External EnvironmentThe general environmentThe industry environmentThe competitive environment1.Study the external environment,e

19、specially the industry environment.An Attractive IndustryAn industry whose structural characteristics suggest AARsStrategy FormulationSelection of a strategy linked with AARs in a particular industryAssets and SkillsAssets and skills required to implement a chosen strategyStrategy ImplementationSele

20、ction of strategic actions linked with effective implementation of the chosen strategySuperior ReturnsEarning of AARs2.Locate an industry with high potential for AARs.3.Identify the strategy called for by the attractive industry to earn AARs.4.Develop or acquire assets and skills needed to implement

21、 the strategy.5.Use the firms strengths to implement the strategy.The I/O ModelThe R/B Model of AAREach organization is a collection of unique resources and capabilities that provides the basis for its strategy and is the primary source of its returns.The differences in firms performances across tim

22、e are driven primarily by organizations unique resources and capabilities rather than by an industrys structural characteristics.Resources may not be highly mobile across firms.The differences in resources form the basis of competitive advantage.ResourcesInputs into a firms production process1. Iden

23、tify the firms resources. Study its strengths and weaknesses as compared to those of competitors.CapabilityCapacity of an integrated set of resources to integratively perform a task or activityCompetitive AdvantageAbility of a firm to outperform its rivalsAn Attractive IndustryAn industry with oppor

24、tunities that can be exploited by the firms resources and capabilitiesStrategy Formulation&ImplementationStrategic actions taken to earn AARsSuperior ReturnsEarning of AARs2.Determine the firms capabilities. What do the capabilities allow the firm to do better than its competitors？3. Determine the p

25、otential of the firms resources and capabilities in terms of a competitive advantage.4. Locate an attractive industry.5.Select a strategy that best allows the firm to exploit its resources and capabilities relative to opportunities in the external environment.The R/B ModelStrategic IntentStrategic i

26、ntent is the leveraging of a firms internal resources, capabilities, and core competencies to accomplish the firms goals in the competitive environment. Strategic intent implies a significant stretch of an organizations resources, capabilities, and core competencies. Strategic intent exists when all

27、 employees and levels of a firm are committed to the pursuit of a specific performance criterion.It seems like a dream, unrealistic goal, imagination.Examples of ExpressionTo become a high-performance multinational energy companynot the biggest, but the best. (Unocal Corporation) To be the top perfo

28、rmance in everything the company does. (Philips Petroleum Company)To catch up with and beat Caterpillar. (Komatsus)To beat Xerox. ( Canon)To become second Ford. (Honda)Strategic MissionThe strategic mission is a statement of a firms uniques purpose and the scope of its operations in product and mark

29、et terms.In some firms, mission is called vision.Examples of ExpressionTo put a car in every home. (Ford)A computer in every home. (Apple)A computer on every desk, and every home, running on Microsoft software. (Bill Gates)Portable communications. (Motorola)Intent and MissionStrategic IntentWinning

30、competitive battles through deciding how to leverage resources, capabilities, and core competenciesStrategic MissionAn application of strategic intent in terms of products to be offered and markets to be served Strategic ObjectivesProfitability:Productivity: Market Status: R&D: Organizational Change

31、:Human ResourcesSocio Responsibility MSAMS-Absolute MSRMS-Relative MSSales of the industryAMS=Sales of the companyX 100%Sales of the largest oneRMS=Sales of the companyX 100%numerator is unchangedDenominator: if the companys sales is the biggest, the denominator must be the second one.Objective Syst

32、emReturn on Capital 12% Return on Sales 8% Turnover Rate of Capital 1.5 ProfitRevenue 3m RevenueTotal Capital 2m Fixed AssetsCurrent AssetsSalesCostFixed CostVariable CostProfit & TaxFixed CostVariable CostProfit & TaxThe Ideas of Strategic Management1.The Idea of Adapting Environment2.The Idea of C

33、ompetitive Advantage3. The Idea of Reengineering4. The Idea of Strategic Alliance5. The idea of Organization Learning 1. Adapting EnvironmentGlobalizationNetworkPhysical ResourcesHuman ResourcesInfo. ResourcesInternetWorldwide MarketGlobal ProcurementGlobal Logistics2.The Idea of Competitive Advanta

34、geMichael EPorter put forward to the concept: it is from low cost or differentiation.The advantages can come from internal and external.Based on external condition include:natural environment, natural resources, transportation,information communication, economic base, public relation. Formed by inte

35、rnal：decision making ability of top management, innovation ability of technician and engineers ,marketing ability of marketer, competence of employee.3. The Idea of ReengineeringCore BusinessCustomer OrientationOrganization FlatEnvironment changeBPRCompetitive AdvantageResources Focus onCompetition

36、PressureVariety of NeedsNetworkBPRBPRNothing changed except in todays society. change 4. The Idea of Strategic AllianceRCoase said：there are two systems can be used to configuration and coordination resources:Through market: by use of the price as a tool to accomplish a set of market transactions.Th

37、rough organization: a coordinator within organization to direct production. Both mechanisms cost money. So, which one is used depends on which has the lower cost. Whether a company will expand or reduce its businesses depend on the save of transaction cost. 5. The idea of Organization Learning TheFi

38、fthDiscipline Arts and Practices of The Learning Organization (PeterSenge, 1990)To bring peoples creativity into play is the key successful factor in the 21st. It is also the key point of the management efforts.Organization learning is an unremitting process. It is the process which an organization

39、ceaselessly acquire lore, and pass lore each other in the organization, and create new lore by various ways and manners in order to boost up organizational abilities and improve organizational behavior and performance.Three Key Points of Organization Learning：Three Key Points of Organization Learnin

40、g1. The organization can ceaselessly acquire lore and accumulate lore2. The organization can pass lore each other in the organization3. The organization can create new lore By studying the internal environment, Firms determineWhat they can doBy studying the external environment, Firms identifyWhat t

41、hey might choose to do General External Environmental AnalysisIndustry Environment AnalysisChapter 2 The External EnvironmentGeneral EnvironmentCompetitor EnvironmentIndustry EnvironmentEconomicDemographicSocioculturalPolitical/LegalGlobalTechnologicalGeneral EnvironmentThe general environment is co

42、mposed of elements in the broader society that can influence an industry and the firms within it.The industry environment is the set of factors the threat of new entrants, suppliers, buyers, product substitutes, and the intensity of rivalry among competitors that directly influences a firm and its c

43、ompetitive actions and responses.Definitions of general and industry environmentThe General Environment: Segments&ElementsDemographic Segment Population sizeAge structureGeographic distributionEconomic cycleInterest and Inflation ratesTrade deficits or surplusesBudget deficits or surplusesAntitrust

44、lawsTaxation lawsDeregulation philosophiesWomen in the workforceWorkforce diversityAttitudes about quality of work lifeProduct innovationsProcess innovationsApplications of knowledgeEconomic SegmentPolitical/Legal SegmentSociocultural SegmentTechnological SegmentGlobal SegmentImportant political eve

45、ntsCritical global marketsEthnic mixIncome distributionPersonal saving ratesBusiness saving ratesGross domestic productLabor training lawsEducational philosophies and policiesConcerns of environmentShifts in work&career preferanc Shifts in preferences in products and service characteristicsFocus of

46、private and govern-ment supported R&D expenditurNew communication technologyNewly industrialized countriesDifferent cultural and institu- tional attributesEconomic CycleReviveBoomStagnancyCrisisABReviveBoom WeakSoft LandfallComponents of the External AnalysisIdentifying early signals of environmenta

47、l changes and trendsDetecting meaning through ongoing observations of environmental change and trendsDeveloping projections of anticipated outcomes based on monitored changes and trendsDetermining the timing and importance of environmental changes and trends for firms strategies and their management

48、ScanningMonitoringForecastingAssessingExchange and Communication of Cross-culturesChinaNot directly mention key pointAsk questions or have requirements by a subtle wayPraising groupSaying words to boost harmoniousSomething have not been express are also very importantUsually not to say “No，instead o

49、f changing other topic or give a blurry answerHaving a expression for the most important thing in the lastGuangxi is the first thing in allfirstly discussed topic is about private things before discussing businessSynthesizing different ideas，struggle to be consistent Person and mind cannot be separa

50、tedDumbness does not mean disagreeAmericanDirectly mention key pointBluntly discussing requirements and problem being facedPraising individualPrecisely saying what one wants to sayWhat one say is the most importantDirectly say “NoHaving a expression for the most important thing in the beginningRules

51、 are the most important，firstly discussing business than private Making ideas diversely，struggle to have the best onePerson and mind can be separated Dumbness means disagreeIndustry Environment AnalysisAn industry is a group of firms producing products that are close substitutes.The industry environ

52、ment is the set of factors the threat of new entrants, suppliers, buyers, product substitutes, and the intensity of rivalry among competitors that directly influences a firm and its competitive actions and responses. Industry environment has a more direct effect on strategic competitiveness and AARs

53、.The Five Forces Model of CompetitionIndustryCompetitorsThe Threat of EntryAbsolute cost advantagesGovernment policyEconomies of scaleCapital requirementsBrand identitySwitching costsAccess to distributionExpected retaliationThe Threat of SubstituteRelative price/performanceSwitching costsBuyer prop

54、ensity toSupplier PowerSupplier concentrationImportance of volume to supplierDifferentiation of inputs Impact of inputs on cost of differentSwitching costs of supplier/firmsPresence of substitute inputsThe Degree of RivalryIndustry growthProduct differencesBrand identitySwitching costExit barriersIn

55、formational complexity Buyer PowerBargaining leverage Price sensitivityBuyer concentration Price/Total PurchasesBuyer volume Impact on qualityBuyer information Product differencesBuyer switching cost Brand identitySubstitute product Ability to backward int.Threat of New EntrantsThe likelihood that f

56、irms will enter an industry is a function of two factors: Barriers to entryThe retaliation expected from current industry participantsBarriers to EntryEconomies of ScaleExperience CurveProduct DifferentiationCapital RequirementsSwitching CostsAccess to Distribution ChannelsCost Disadvantages Indepen

57、dent of ScaleGovernment PolicyExpected RetaliationUnit cost tends to decline following the way with fixed ratio when accumulated production increase. Experience CurveAccumulated ProductionUnit CostCn= C1n- Accumulated ProductionUnit CostC2n = kCnSources of ExperienceExperience accumulatingLearningAp

58、plications of the Experience Curve Predict cost mode Guide pricing differenceActualForecastPriceCostPriceCostExit BarrierSpecialized assetsFixed costs of exit (e.g. labor agreements)Strategic interrelationships (mutual dependence relationships)Emotional barriers (fear for ones career)Government and

59、social restrictions Intensity of Rivalry Among CompetitorNumerous or Equally Balanced CompetitorsSlow Industry GrowthHigh Fixed or Storage CostLack of Differentiation or Low Switching CostsCapacity Augmented in Large IncrementsDiverse CompetitorsHigh Strategic StakesHigh Exit BarriersStrategic Group

60、sMichael S. Hunt, Competition in the major home appliance industry, 1972, (Doctoral dissertation, Harvard University) A strategic group is a group of firm in an industry following the same or a similar strategy along the same strategic dimensions.Example of Strategic GroupGroup AGroup DGroup BGroup