Session 2 Strategic Management

1. Session 2Strategic Management • Questions? • Strategic management concepts • Strategy: meaning, perspective, & value • Strategic management process • Levels of strategy • Application of concepts to Wal-Mart and Costco BA 490 Strategic Management

2. Assignment for Session 2 • Review the syllabus • Check out the course web site • Study H&W Ch 1  Basics of strategic management • Prepare to discuss the following questions on the Wal-Mart and Costco articles (available online through course web site). • How do the strategies for Wal-Mart and Costco differ? • In what areas do their goals differ?   Use the list of areas at the top of page 7 in H&W. • Distinguish the three elements of the hierarchy of strategy for each company, e.g., give an example of each level of strategy. BA 490 Strategic Management

3. Strategy—what is it? • Strategy: a plan for interacting with the competitive environment to achieve organizational goals (Daft, 2001) BA 490 Strategic Management

4. Major elements of strategy • Strategy formulation--development of long-range plans for the effective management of environmental opportunities and threats, taking into account strengths and weaknesses • Strategy implementation--Process by which strategies and policies are put into action through the development of programs, budgets, and procedures BA 490 Strategic Management

5. Strategy—where is its focus? • External—to determine • What the firm seeks to be • What it seeks to accomplish (overall goals and objectives) • Opportunities and threats in the environment • The path it will take to succeed within the environment • Internal—to determine • Capabilities, i.e., strengths and weaknesses • The design of the organization • Supporting functional (organizational) • objectives • strategies • plans BA 490 Strategic Management

6. Strategic management process Reference Fig. 1.3 • Environmental scanning • Strategy formulation • Strategy implementation • Evaluation and control BA 490 Strategic Management

7. How do the strategies of Wal-Mart and Costco differ? BA 490 Strategic Management

8. In what areas do their goals differ?   Use the list of areas at the top of page 7 in H&W. • Profitability • Efficiency • Growth • Stockholder wealth • Utilization of resources • Reputation • Contributions to employees • Contributions to society • Market leadership • Survival • Personal needs of management BA 490 Strategic Management

9. In what areas do their goals differ? BA 490 Strategic Management

10. Distinguish the three elements of the hierarchy of strategy for each company. • Corporate • Business • Functional • Marketing • Finance • Operations BA 490 Strategic Management

11. Firm infrastructure Human resource management Support Activities Margin Technology Development Procurement Opera- tions Inbound Logistics Out- bound Logistics Market- ing and sales Margin Serv- ice Primary Activities The Generic Value Chain BA 490 Strategic Management

12. Strategy Exercise BA 490 Strategic Management

13. Review questions • What is strategic management & why does it matter? • What are the major steps in the strategic management process. • Identify the 3 levels of strategy in the hierarchy of strategy. • What distinguishes each level of strategy? BA 490 Strategic Management

14. Assignment for session 3 • Reading Packet 1:  • Organizational effectiveness--the basis for deciding • A brand called you article • Prepare to discuss the following based on the readings and Amazon article (available online through course web site).  (Quiz likely) 1.   What is organizational effectiveness and how can it be measured? 2.   Is Amazon effective?  Justify your response using the organizational effectiveness concepts in the reading. 3.   What does the Brand Called You article suggest you do to further your career? BA 490 Strategic Management