Nota bagi kelas PB702- Strategic Management (Chapter 2) CHAPTER 2 STRATEGIES IN ACTION OBJECTIVES: 2.1 Discuss the value of establishing long term objectives 2.1.1 Discuss the nature of long term objectives 2.1.2 Discuss the financial versus strategic objectives 2.1.3 Discuss the levels of strategies 2.2 Discuss the strategies that should be avoided in establishing long term objectives 2.2.1 Managing by extrapolation 2.2.2 Managing by crisis 2.2.3 Managing by subjective 2.2.4 Managing by hope 2.3 Discuss types of business strategies 2.3.1 Explain integration strategies 2.3.2 Explain Intensive strategies 2.3.3 Explain diversification strategies 2.3.4 Explain defensive strategies 2.4 Describe strategic management in nonprofit, governmental and small organizations 2.4.1 Explain the strategic management in nonprofit organization 2.4.2 Explain the strategic management in governmental organization 2.4.3 Explain the strategic management in small organization 2.1.1 Discuss the nature of long term objectives - quantitative - measurable - realistic - understandable - time bound - offer benefits 2.1.1 Discuss the nature of long term objectives - CONT - Benefit of clear objectives - Provide directions - Allow synergy - Aid in evaluation - Establish priorities - Reduce uncertainty - Minimize conflicts - Stimulate exertion/effort - Aid in allocation of budgets and design of jobs - Provide basis for consistent decision making Objectives are based on merit pay and bonus – Arthur D. Little Varying performance measures by organizational level Clearly stated & communicated objectives are vital for success for many reasons: - Help stakeholders understand their role in an organization’s future - Basis for consistent decision making by managers whole values and attitude differs - Organization can minimize potential conflicts later during implementation WITHOUT LONG TERM OBJECTIVES, organization would drift aimlessly towards some unknown end. 2.1.2 Discuss the financial versus strategic objectives Financial objectives: - Growth in revenue/ improved Cash Flow - Growth in earnings - Higher dividends - Larger profit margins - Greater return on investments - Higher earnings per share -Continued- - Strategic objectives: - Larger market share - Quicker on time delivery than rivals - Lower cost than rivals - Higher product quality than rivals - Wider geographic coverage - Achieving ISO 4001 certification Trade-off between financial objectives and strategic objectives FO - Crucial decisions have to be made; Competitors relentlessly pursue increase in market share at the expense of short-term profitability. Higher prices might jeopardize long-term market share. SO - Riskiness of actions - Concern of business ethics - Needs to preserve the natural environment - Social responsibility issues 2.1.3 Discuss the levels of strategies - Large company: corporate level (CEO), division level (div president or executive vice president), functional level (finance, marketing, R&D, manufacturing, information systems, and human resource managers), Operational level (plant managers, sales managers, production and department managers) - small company: company level (owner or president), functional level (finance, marketing, R&D, manufacturing, information systems, and human resource managers), operational level (plant managers, sales managers, production and department managers) 2.2 Discuss the strategies that should be avoided in establishing long term objectives 2.2.1 Managing by extrapolation - Adheres to the principle “if it ain’t broke, don’t fix it” - The idea is to keep on doing the same things in the same ways because things are doing well 2.2.2 Managing by crisis - Based on the belief that the true measure of really good strategist is the ability to solve problems - Therefore, since there will be crisis and problems around, time and creative energy is required to bear on solving problems of the day. - It is a form of reacting rather than acting - Letting events dictate what and when management decision is needed 2.2.3 Managing by hope - Built on the idea that there is no general plan for which way to go and what to do. - “do your own thing, the best way you know how” (sometimes referred to as the mystery approach to decision making because subordinates are left to figure out what is happening and why) 2.2.4 Managing by hope - Based on the fact that the future is laden/ burdened with great uncertainty and that if we try and do not succeed, then we hope our 2nd / 3rd attempt will succeed. - Decisions are predicted on the hope that they will work and that good times are just around the corner; especially if luck and good fortune are on our side 2.3 Discuss types of business strategies 2.3.1 Integration strategies; - Forward integration - Backwards integration - Horizontal integration 2.3.2 Intensive strategies - Market penetration - Market development - Product development 2.3.3 Diversification strategies - Related diversification - Unrelated diversification 2.3.4 Defensive strategies - Retrenchment - Divestiture - liquidation 2.3.1 Integration strategies Three types of Integration strategies; - Forward integration - Backwards integration - Horizontal integration - Allow a firm to gain control over distributors, suppliers and / or competitors 2.3.2 Intensive strategies Three types of Intensive strategies - Market penetration - Market development - Product development 2.3.3 Diversification strategies - Two types of Diversification strategies - Related diversification - Unrelated diversification 2.3.4 Defensive strategies Three types of Defensive strategies - Retrenchment - Divestiture - Liquidation
Posted on: Tue, 08 Jul 2014 08:47:55 +0000
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