Izabela Szlachta at 20:11, 8 November 2012

2012-11-08T20:11:16Z

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{{Cat|Strategic Management|10}}
{{Strategic Management Links}}

== Strategic Management Definition ==
Strategic management is a field that
* deals with the major intended and emergent initiatives taken by general managers on behalf of owners,
* involving utilization of resources, to enhance the performance of ﬁrms in their external environments.

It entails specifying:
* the organization's mission, vision and objectives,
* developing policies and plans,
* often in terms of projects and programs
* implementation of them
<ref>http://en.wikipedia.org/w/index.php?title=Strategic_management&oldid=498817952</ref>

== Questions ==
* What is a Strategic Plan?
* What is a Market Size?
* Do you need to stick to a strategic plan?
* Why do we you need a Strategic Plan?
* How long should be a Strategic Plan?
* Have you ever seen a Strategic Plan?
* Who should see a Strategic Plan?
* How the processes of writing a strategic plan look like?
* What levels of strategy do you know?

== Ultimate Goal ==
* Utilitarianism
* After Life

== Vision and missions of organizations ==
# Obliterate Poverty (i.e. World without poverty) (vision)
## System of direct subsidies for poor
## System of effective education
## Eugenics
## ...
# Prevent War (i.e. World without war) (vision)
## Global totalitarian state
## Change human brain so people cannot fight
## Design other alternative political system...
# Eliminate Waste (World where people do not waste their time but do really needed stuff)
## Streamline education process
## Invest in assets (machines, computers, infrastructure)
## ...

== Strategic Management ==
https://docs.google.com/drawings/pub?id=1iFwfnjzI9QBn6XwWMphJASn9aTpbDaHWEt26aHjau7Y&w=800&h=600&.png

== Quiz ==
# What is a goal of strategic management?
# What are two major parts of strategic management?
# What is a handset market in the US?

== Strategic Plan Elements ==
<signavio>6fef6ce19c134aefbf3f2560321e1d22:3f40cd48e2ba7044a6cac3b96cb79fdc1bcd3453a9d9403be8884735cd4f10_27612564cbfd1b73974219a6ed2f7457e0c7a3527d7b99d0f86b2335c06f723_7567a92a7bb9aa84a714fdb3f99a17b6cb7781b08d1eab30f318fa2a7bb4ffbf</signavio>

== Strategic Planning as a Process ==
* Strategic planing might be considered a process.
* It means that it is not done at once for immediate implementation - in fact, it is a process requiring cyclical revisions.
[[File:Bmm overview.png|600x600px]]

== Strategic Planning and Science Fiction ==
Commonalities
* try to predict the future
* assume sound and solid scientific foundation
* analyse how the technological, political and culturual changes are going to affect people's life
Differences
* SP aims at achieving a specific goal
http://www.firstpost.com/world/intel-sponsored-sci-fi-searches-for-the-future-63180.html

== Strategic Planning ==

"Strategic planning consists of ''the process'' of defining objectives and developing strategies to reach those objectives. " <ref>Wikipedia</ref>

* '''Strategic''' means to operate on the grand scale and to take in 'the big picture' (as oppose to '''tactical''')

== Strategic Plan Audience and Motivation ==
Investors (Should I invest)
* Venture Capital
* Share Holders
* Banks
CFO (Budgeting)
* Where should we allocate our resources?
Employees (Focus)
* Should we do that at all?
* What should we do first?
Auditors (Control)
* How can we check whether management is effective or not?

https://docs.google.com/drawings/pub?id=1X-1uuKnDV_1sWVcBx2dAG4v1KmjUGOBnqEg3-X5wsTg&w=800&h=600&.png

== Strategy Levels ==
* Corporate Strategy (What should we do as a group?)
* Business Unit Strategy (versus Funcional)
* Regional Strategies
* Operational Strategy

== Business Unit Strategy Example ==
https://docs.google.com/drawings/pub?id=1Wk3bqtn46fUYuRX4XPCa5vYHOkqWSzggONBshUiBtyw&w=800&h=600&.png

* "A '''Strategic Business Unit''' is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU."<ref>Johnson and Scholes, 2002</ref>
* Focus on competitive strategy (i.e. how to achieve competitive advantage in its market)
* E.g.
** Price strategy
** Product positioning
** Advertising
** Customer service
** High level business process like sales, marketing, etc...
* Answer the question "how can we achieve our goal?"

== Regional Strategy Example ==
https://docs.google.com/drawings/pub?id=1g-m_3RqdNU6ITVIi-kfnvPB7IEAJyrxYsK-57gBAu2A&w=928&h=558&.png

== Operational Strategy ==
* "Concerned with how the component parts of the organisation deliver effectively the corporate - and business-level strategies in terms of resources, processes and people".
* Focuses on optimization of business processes
* E.g. which suppliers to use, where to locate the outlines, etc...

== Two approaches to Strategic Planning ==

{| class="wikitable"
|-
! !! Old School !! New School
|-
| Order of Steps
|
# Strategic Analysis
# '''Vision'''
# Goals
# Financial Plan
|
# '''Vision'''
# Strategic Analysis
# Goals
# Financial Plan
|-
| Profit Criteria || "We do not start unless we see we can make money..." || "We will figure out how to make money later..."
|-
| For whom
|
* Traditional industries like Energy, Cars, Planes, etc...
* Usually used for existing conglomerates
* Used when shareholders are demanding concrete plan
* E.g. GE, IBM, Shell ...
|
* High-techs/creative industries
* New Companies (YouTube, Facbook, Google, etc...)
* Usually no need to argue with shareholders
|-
|
|
* Limited Resources
* Known Markets
* Best use of the organization's assets
* Good for well established known companies
|
* A bit like a Business Plan
* Markets which may not exist yet
* Focusing on "to be" state rather than "as is"
* Usually assumes that the company will make no profit for first couple of years (like Amazon, YouTube, etc...)
|}

== Strategic Analysis ==

{| class="wikitable"
|-
! Environment Analysis
! Industry and Market analysis
! Company analysis
|-
| [[File:A Pool of Distant Galaxies.jpg|200px]]
| [[File:Industry.jpg|200px]]
| [[File:Kingrecords Company.jpg|200px]]
|}

== How a Strategic Plan looks
Strategic Plan usually is made of a lot of documents
* Descriptive (Vision, mission, values)
* Analytic
** Opinions
** Market Analysis
** Company Analysis
* Executive
** Goals and Strategics
** Scorecards
* Financial
** Investor Prospectus
** Financial Analysis
** Budgets
* Operational
** Business Process Diagrams
** Business Architecture

== When should I update my strategic plan? ==
* Mission and Vision should be relatively constant, revised every year or couple of years
* Values should be revised a couple of times a year
* Market and Company Analyses (monthly)
* Executive and Financial (daily)

== Toys (AKA Tools) ==
https://docs.google.com/drawings/pub?id=1Z4oMk_7rnP7yGQofMrICaAQi_B9oLo0zwu1SWAkLi6M&w=963&h=614&.png

== References ==
<references />

Strategic Management - Revision history

Izabela Szlachta at 20:11, 8 November 2012