1. Chapter 08

2.  It’s a long-term perspective of management.
 What managers do to develop the organization’s
strategies.
 Strategic management can be used to determine
mission, vision, values, goals, objectives, roles and
responsibilities, timelines, etc.
Strategies
 The decisions and actions that determine the
long-run performance of an organization.

3.  Current Mission
 Situational Analysis
 Strategy Formulation
 Strategy Implementation
 Strategic Control (Review + Evaluation)
SW (Internal Audit)
OT (External Audit)
1. Corporate level
2. Business level
3. Functional level
1. Corporate level
2. Business level
3. Functional level

4.  A statement of the purpose of the organization, what
the organization is going to do? What it want to
achieve is stated in mission statement.
 Which portion of the mission statement is to be
accomplished by the organization.

6. "McDonald's brand mission is to be our customers'
favorite place and way to eat."
 We place the customer experience at the core of all we
do.
 We are committed to our people.
 We believe in the McDonald's System.
 We operate our business ethically.
 We give back to our communities.
 We grow our business profitably.
 We strive continually to improve.

7. Situational Analysis
National/Local
Companies
1.SWOT Analysis
(Macro & Micro)
2. PEST Analysis
(Macro )
Multinational
Companies
(MNCs)
1.SWOT Analysis
(Macro & Micro)
2.PESTEL Analysis
(Macro )

8. 1. Factor Listing Step 2. TOWS Matrix
3. Critical Region
This area is to be focused.
4. Management Decision
Management decision about overall
position of analysis or factors.
Strengths
----------------
Opportunities
-----------------
Weaknesses
-----------------
Threats
----------------
OS OW
TS TW
S W
O
T
O W

9. Strengths (Examples)
•Excellent sales staff with strong
knowledge of existing products
•Good relationship with customers
•Good internal communications
•High traffic location
•Successful marketing strategies
•Reputation for innovation
Weaknesses (Examples)
•Currently struggling to meet
deadlines - too much work?
•High rental costs
•Market research data may be out of
date
•Cash flow problems
•Holding too much stock
•Poor record-keeping
Opportunities (Examples)
•Similar products on the market are not
as reliable or are more expensive
•Loyal customers
•Product could be on the market for
Christmas
•Customer demand - have asked sales
staff for similar product
Threats (Examples)
•Competitors have a similar product
•Competitors have launched a new
advertising campaign
•Competitor opening shop nearby
•Downturn in economy may mean
people are spending less

10. Strengths
•Government Backing
•Surplus of Rs. 50 Carore Annually
•Central location in city
•Competent and Active Top
Management
Weaknesses
•Poor Infrastructure
•Unqualified faculty
•Administrative structure in complex
Opportunities
•Hire PhD Faculty
•Increase in Admissions every year.
•Improve Infrastructure /Sub Campuses
•Start new degree program
Threats
•Other universities are planning to
come in Faisalabad.
•HEC policies
•HEC may stop funding.
•Political Pressure

11.  Political Factors
 Econ0mical Factors
 Social Factors
 Technological Factors

12.  Political Factors
 Econ0mical Factors
 Social Factors
 Technological Factors
 Environmental Factors
 Legal Factors

14. Corporate
Strategy
Grand Strategy
1.Growth
***Integration
***
Diversification
***Penetration
2.Stability
3. Retrenchment
***Divest
*** Joint Venture
***Liquidation
Portfolio Strategy
***Portfolio
(Business entity)
*** SBU
*** Overall
activities are
different of
different SBUs
C
SBU
1
SBU 2
P L
C

15.  3.1.1.1 BCG (Boston Consultant Group Matrix) Growth
share matrix
L
H
H L
MarketGrowth
Market Share
STARS
• More investment would
be fruitful.
Cash Cows
• Maximum milking.
•Investment may be
controlled on it.
•Earnings > Expenses.
• Harvest (Cash Withdrawals)
?
• Investment in needed to
increase market share.
•Investment from cash
cows.
Dogs
• Divest
•End
•Do not invest anything
•Just sell it.

16.  3.1.1.2 GE (General Electric Business Screen)
X + #
+ # 0
# 0 .
X : Investment &
Hold
+: Invest
selectively and
build
#: Stable
0: Harvest
.: Divest
H
M
L
H M L
Business Strength
Market
Attractiveness

17. Business
level
Strategies
Miles &
Snow Model
1.Prospector
(Lookingforthenew
customers)
2.Defender
(Leader)
3.Reactor
(AgainstAction)
4.Analyzer
(Basedonanalysis)
M.J. Porter
Model
(Generic
Competitive
Strategy)
1.CostLeadership
(Nokia)
2.Differentiation
3.Focus
(Only1aspectofproduct
e.g.
Nokia:Durability)