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Chapter 4: Strategic Management
Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning Objectives ,[object Object],[object Object],[object Object],[object Object]
Competitive Advantage ,[object Object],[object Object],[object Object],Superior Value Rarity Difficult to Imitate Non-substitutability
Qualities Leading to Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Superior Value
Qualities Leading to Competitive Advantage ,[object Object],[object Object],Superior Value Rarity
Qualities Leading to Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Superior Value Rarity Difficult to Imitate
Qualities Leading to Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],Superior Value Rarity Difficult to Imitate Non-substitutability
Turning a Competitive Advantage into Profits ,[object Object]
Strategic Management Process:  Setting Direction ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Management Process Determine strategic vision Establish objectives Formulate strategy ,[object Object],[object Object],[object Object],[object Object],Analyze internal resources Analyze external environment Adapted from Exhibit 5.1 Define organizational mission
Determining the Strategic Vision ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mission Statement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
External Environmental Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Firm Social/ Cultural Environment Techno- logical Environment Political/ Legal Environment Global Environment Economic Environment
General Environment ,[object Object],[object Object],[object Object]
General Environment ,[object Object],[object Object],[object Object]
General Environment ,[object Object],[object Object],[object Object],[object Object]
General Environment ,[object Object],[object Object],[object Object]
General Environment ,[object Object],[object Object],[object Object],[object Object]
The General Environment of Coca-Cola Coca-Cola Social/ Cultural Environment Techno- logical Environment Political/Legal Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Global Environment Economic Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Adapted from Exhibit 5.3
Industry and Competitive Environment Suppliers Customers New Entrants Industry competitors Rivalry among existing firms Substitutes
Profits and Industry Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Higher Profits Lower Profits Adapted from Exhibit 5.4
Industry and Competitive Environment of JetBlue JetBlue Customers Business travelers Leisure travelers Competitors Rivalry: Price New entrants: Few Substitutes: Video conferencing Suppliers Planes: Airbus Jet fuel: many suppliers such as  Exxon Mobil Labor No union  representation Ample supply of  pilots and flight attendants Regulators FAA Airport authorities Strategic Partners No airline partners Initial partnership With satellite TV provider Adapted from Exhibit 5.5
The Value Chain ,[object Object],Support Activities Adapted from Exhibit 5.6
Integrating Internal and External Analyses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Internal Environment SWOT
Integrating Internal and External Analyses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],External Environment SWOT
Strategic Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Formulating a Strategy  ,[object Object],[object Object],[object Object]
Formulating a Strategy  ,[object Object],[object Object],[object Object],[object Object]
Generic Strategies and Scope General player whose product or service features command industry average prices but whose costs are significantly below the industry average Example: Wal-Mart Niche player with average  Prices and below-average costs  That focuses on a segment of customers or a specific geography Example: Columbia Sports General player whose product or service features command premium prices and whose costs are at the industry average Example: Sony Niche player with average costs but commanding premium prices that focuses on the high end and customers in a general or specific geography Example: Morgan Motors Scope General Focused Differentiation Cost leadership Strategy
Strategy Implementation Strategy Structure Systems Shared Values Skills Staff Style

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Man essentials ch4_new-1

  • 1. Chapter 4: Strategic Management
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Industry and Competitive Environment Suppliers Customers New Entrants Industry competitors Rivalry among existing firms Substitutes
  • 22.
  • 23. Industry and Competitive Environment of JetBlue JetBlue Customers Business travelers Leisure travelers Competitors Rivalry: Price New entrants: Few Substitutes: Video conferencing Suppliers Planes: Airbus Jet fuel: many suppliers such as Exxon Mobil Labor No union representation Ample supply of pilots and flight attendants Regulators FAA Airport authorities Strategic Partners No airline partners Initial partnership With satellite TV provider Adapted from Exhibit 5.5
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30. Generic Strategies and Scope General player whose product or service features command industry average prices but whose costs are significantly below the industry average Example: Wal-Mart Niche player with average Prices and below-average costs That focuses on a segment of customers or a specific geography Example: Columbia Sports General player whose product or service features command premium prices and whose costs are at the industry average Example: Sony Niche player with average costs but commanding premium prices that focuses on the high end and customers in a general or specific geography Example: Morgan Motors Scope General Focused Differentiation Cost leadership Strategy
  • 31. Strategy Implementation Strategy Structure Systems Shared Values Skills Staff Style