Strategic

management
Chapter 1:Fred David

bichdn@ueh.edu.vn
Signpost
Strategic management and other factors =>SM
1. SM model
Discussion
CAN WE HAVE
ABSOLUTE FUNS
EVEN LOSING ALL
THE TIME :D
STRATEGY
PLAN

SERIES OF
ACTIVITIES

VERTICAL AND
HORIZONTAL
INTEGRATION
 Three questions to be answered
1. Where are we now?
STRATEGY 2. Where do we want to go?
3. How are we going to get there?

GAME PLAN
STRATEGY

1 2
3

Current
 Strategic management
can be defined as the
art and science of
formulating,
Strategic implementing, and
evaluating
management cross-functional
decisions that enable
GAME PLAN
an organization to
achieve its objectives.
 - Identify the business
pathway
- Identify the long-term goal
So WHY? - Take opportunities
- Improve effectiveness -
resources, growth,
Role of SM
competitive advantages
- Fundamental for decision
making
 Strategic
planning vs.
ARE THEY SIMILAR?
Strategic
management?
Strategic management
Strategic management =?Strategicplanning

BECAUSE

ONLY strategic
formulation
Strategic formulation
Strategic implementation
Strategic evaluation
WHAT BUSINESS TO DO??? ACTION! MODIFICATION
WHAT BUSINESS TO DO??? LEADERSHIP +
MANAGEMENT

STRATEGY STRATEGY STRATEGY

IMPLEMENTATION EVALUATION
FORMULATION

STAGE STAGE STAGE

1 2 3
Vision, mission, external
establish annual objectives, (1) Review relevant
opportunities +threats, internal S factors => OK?
W, long-term objectives, devise policies, motivate
alternative S and choose S to employees, and allocate (2)Measurement
adopt resources
(3)Correction
Quick test
What step in the strategic development process involves mobilizing employees and
managers to put strategies into action?
● A) Formulating strategy
● B) Strategy evaluation
● C) Implementing strategy
● D) Strategic advantage
● E) Competitive advantage
Quick test
What step in the strategic development process involves mobilizing employees and
managers to put strategies into action?
● A) Formulating strategy
● B) Strategy evaluation
● C) Implementing strategy
● D) Strategic advantage
● E) Competitive advantage
 Strategy
Formulation
Vision & Mission

External Opportunities & Threats

Internal Strengths & Weaknesses

Long-Term Objectives

Alternative Strategies

Strategy Selection

Ch 1
-8
Vision and Mission Statements

Bản chất của

Vision Statement – DN
What do we want tobecome?
the ideal position that you want to become in the business lifetime

Mission Statement –
What is our business?
the DEFINITION of your businesses, in the definition, they likely to tell you the mission components

Copyright © 2011 Pearson Education, Inc. Ch 1-9

Publishing as Prentice Hall
Some terms
Vision (Tầm nhìn) and Mission (Sứ mệnh)
Vision: “What do we want to become?”
-

Doanh nghiệp sẽ ra sao trong tương lai

Mission: “What is our business"
-

Doanh nghiệp tồn tại để làm gì/ làm gì để tồn tại

VD:

“We aim to be Earth’s most customer centric company.”

VÍ DỤ

VINAMILK’S VISION
- “Trở thành biểu tượng niềm tin số một Việt Nam về sản phẩm dinh
dưỡng và sức khỏe phục vụ cuộc sống con người”.

GOAL OF ENTERPRISE
COCA COLA
MCQ
The first step in strategic planning is generally
● A) developing a vision statement.
● B) establishing goals and objectives.
● C) making a profit.
● D) developing a mission statement.
● E) determining opportunities and threats.
VISION
- statement that
distinguishes one
ORG from other
similar enterprises
MISSION
REQUIREMENT Truyền cảm; xác định tiện ích
TỔNG QUAN

sản phẩm; trách nhiệm xã hội

Xác định 9 nội

dung
Hài hoà và lâu
dài
1- Khách 2 – Sản
phẩm/ 3. Thị trường
hàng
Dvu

4. Công nghệ
9. Sự quan
tâm tới NV

8. 5. Mối
Hình quan
ảnh tâm (3)
công 6.
chúng Triết
7. Tự khẳng lý
EXAMPLE
Core values
The core values of an organization are those values we hold which form
the foundation on which we perform work and conduct ourselves.

Is that the
same with
culture
principles?
 NO TESTING ON ANIMALSAND
HUMAN CORE VALUES NAVIGATES THE BUSINESS
ACTIVITIES!!!

GROWING PARTNERSHIP
AND SUPPORT
COMMUNITIES

VEGAN, ORGANIC
INGREDIENT- BEST
PRODUCTS FOR
SELF-TREAT

POWER OF WOMENAND
GIRLS

SUSTAINABILITY
Một số câu hỏi:
The fundamental purpose for the existence of any organization is described
by its
a. Policies
b. Mission
c. Procedures
d. Strategy
Which type of statement should be create first and foremost

a. Creed
b. Mission
c. Vission
d. Competitive Advantage
In the process of developing a mission statement, it is important to involve:
● A. as few managers as possible
● B. As many managers as possible
● C. Uper-level management only
● D. Lower-level management only

The potential of ORG’ creative growth can be limited by:

A. Over emphasize on stakeholders
B. Mission is too general
C. Mission is too specific
D. Mission is to dynamic

What is associated with present: MISSION OR VISION?

Mini -discussion
Should firm share vision; mission and core values to their stakeholders?
Why?
Any factors that
managers need
to consider
when making
strategy?
External Opportunities and Threats
Analysis of Trends
○ Economic
○ Social
○ Cultural
○ Demographic/Environmental
○ Political, Legal, Governmental
○ Technological
○ Competitors

Copyright © 2011 Pearson Education, Inc. Ch 1-20

Publishing as Prentice Hall
External Opportunities and Threats

Basic Tenet of Strategic Management

Take advantage of
External Opportunities
Strategy
Formulation
Avoid/minimize impact of
External Threats

Copyright © 2011 Pearson Education, Inc. Ch 1-21

Publishing as Prentice Hall
Internal Strengths and Weaknesses
● Typically located in functional areas of the firm
○ Management
○ Marketing
○ Finance/Accounting
○ Production/Operations
○ Research & Development
○ Management Information Systems

Copyright © 2011 Pearson Education, Inc. Ch 1-22

Publishing as Prentice Hall
Internal Strengths and Weaknesses

Assessing the Internal Environment

Financial Ratios

Performance Measures
Internal
Factors
Industry Averages

Survey Data

Copyright © 2011 Pearson Education, Inc. Ch 1-23

Publishing as Prentice Hall
Long-Term Objectives

❑ Specific results that an organization

seeks to achieve in pursuing its basic
mission
❑ Long-term means more than one year

Copyright © 2011 Pearson Education, Inc. Ch 1-24

Publishing as Prentice Hall
Strategies

Means by which long-term objectives

are achieved

Copyright © 2011 Pearson Education, Inc. Ch 1-25

Publishing as Prentice Hall
Strategies

gom doanh nghiệp

bán cho dn khác

Copyright © 2011 Pearson Education, Inc. Ch 1-26

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 Strategy
Implementation

Annual Objectives

Policies

Employee Motivation

Resource Allocation

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Publishing as Prentice Hall -27
 Strategy
Evaluation

Internal Review

External Review

Performance Measurement

Corrective Action

Copyright © 2011 Pearson Education, Inc. Ch 1

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Some terms
Competitive Advantage: Lợi thế cạnh tranh
Anything that a firm does especially well compared to
rivals

Điểm vượt trội so với đối thủ

EXAMPLES
Brand name
Design

Product quality

Cost leadership

Strong customer-based
Let's look at two firms below

WHY DID THEY FALL?

Competitive advantage is forever?
- Only for a period of time

WHY?

- Rivals might imitate/undermine

- External shifting

SOLUTION:

- Adapting to change
- Effectively conduct three stages continuously
Strategic management
model
Strategic Management

● Communication is a key to
successful strategic management

Copyright © 2011 Pearson Education, Inc. Ch 1

Publishing as Prentice Hall -34
SUMMARY

WHAT DID WE STUDY TODAY?

STRATEGIC MANAGEMENT
1.

FACTORS OF STRATEGIC
2.

MANAGEMENT

SM MODEL
3.
Bạn sẽ học
gì tiếp theo?
GLOBALIZATION AND
GLOBAL FIRM!