8. Strategic Management Model
Performance
Actual
Results
Evaluation
&
Control
Programs
Budget
Procedures
Activities
needed
to
accomplish
a plan
Cost of the
programs
Sequences
of steps
needed to
do the job
Objectives
Strategies
What
results to
accomplish
when
Plan to
achieve
mission &
objectives
Broad
guidelines
for
decision
making
Mission
Reasons
for
existence
Environmental
Scanning
Policies
Country
Analysis:
PEST Forces
Industry
Analysis:
Porter 5 Forces
Internal
Company
Analysis:
Value Chain
External
Strategy Formulation Strategy Implementation
Feedback Learning
VISON
8
15. This total misunderstanding began the downfall of Nokia. Nokia never
decided to accept the Android operating system (OS) because they did not
consider it an advancement. Nokia launched its Symbian OS, but it was far
too behind as Apple and Samsung stamped their positions.
The Symbian OS’s inability to capture consumers’ minds was the biggest
reason for Nokia’s downfall.
16. During a press conference last month to announce Microsoft’s acquisition of
Nokia, Nokia CEO Stephen Elop ended his speech saying, “we didn’t do
anything wrong, but somehow, we lost.” Upon this conclusion, he and the
entire management team publicly wept.
24. Google strategy
• Google was once a maddeningly unprofitable company,
fumbling left and right for a stable revenue source
• In 2003, the company launched its AdWords program
which allowed businesses to advertise to people searching
for things on Google.com. Almost overnight, Google took
the leap from popular search tool to advertising
juggernaut.
• In 2008, Google reported to the SEC that it had generated
$21 billion in advertising-driven revenue alone. To this day
25. Apple
• Apple began to focus once more on creating beautiful
consumer electronics, starting with the iMac in 1998.
Apple also acquired several companies in the video
editing and digital production space, which comprises
much of its customer base.
• The iPod was an even bigger success, selling over 100
million units within six years of its 2001 launch
according to the BBC. The iPhone, another smash hit,
recently produced a 100% year-over-year rise in sales
26. Starbucks
• When the hugely successful coffee chain Starbucks opened in the early
1970s, its few stores in Seattle only sold coffee beans and coffee-making
equipment. Starbucks director of marketing and retail operations Howard
Schultz convinced the owners of Starbucks to sell it to him and a few
investor partners to transform it.
• Schultz pivoted the stores into coffeehouses where you could buy
prepared coffee as well as buy beans. The company thrived under
Schultz’s leadership, and he eventually stepped down as its chief
executive in 2000. Schultz then reinvented the company again when he
returned as CEO in 2008.
• In his second stint as CEO, Schultz pushed Starbucks to embrace
technology to engage customers better. Today, the Starbucks app is the
most regularly used loyalty rewards app among major restaurant chains.
27. Toyota
• The car industry was a huge contributor to the US economy,
so one of the first reactions from the government was the
implementation of protectionist taxes on all imported cars -
thus making Japanese cars as expensive as locally made cars.
• But the tactic failed. Within a few years, Toyota had managed
to establish production on US soil, thus eliminating the need
to pay any of the hefty new import taxes.
• Toyota continued its cost leadership strategy. It still
manufactured cars for significantly less money than US
companies could(TPS).
• "The Toyota Way 2001". It consists of principles in two key
areas: continuous improvement and respect for people
28. Sharing economy
• A sharing economy is defined as an economic system in which
assets and services are shared between private individuals.
• It’s used as an umbrella term for many different services,
apps, and products. Attila Marton, professor of digitalization
at Copenhagen Business School, believes these can be divided
into three distinct concepts.
31. Cambridge Analytica
• In the run-up to the 2016 US presidential election, Donald Trump’s
team hired a little-known Anglo-American company called
Cambridge Analytica (CA) to work on the Republican candidate’s
social media campaign. CA used data analysis techniques to target
tens of millions of voters across the US with pro-Trump messages.
• The company’s activities were made possible by the harvesting of
data from over 50 million Facebook users, without their consent or
knowledge. Assisted by a specifically designed algorithm, the
profiles of Facebook users were analysed to identify personality
traits and potential voting intentions. This information, in turn, helped
to identify swing voters and micro-target them with messages that,
according to critics, constituted deliberate misinformation.
32. Aleksandr Kogan
• Aleksandr Kogan, who has also briefly used the name Dr
Spectre, is a Moldovan-born American data scientist, who is
known for having developed the app that allowed Cambridge
Analytica to collect personal details of 80 million Facebook
users. He worked as a research associate at the University
of Cambridge
• Kogan developed the app, named "This Is Your Digital Life,"
that allowed Cambridge Analytica to collect personal details
of 80 million Facebook users
49. Ch 1 -49
Art & science of formulating, implementing,
and evaluating, cross-functional decisions that
enable an organization to achieve its objectives
Strategic Management –Defined
52. Strategic Management Model
Performance
Actual
Results
Evaluation
&
Control
Programs
Budget
Procedures
Activities
needed
to
accomplish
a plan
Cost of the
programs
Sequences
of steps
needed to
do the job
Objectives
Strategies
What
results to
accomplish
when
Plan to
achieve
mission &
objectives
Broad
guidelines
for
decision
making
Mission
Reasons
for
existence
Environmental
Scanning
Policies
Country
Analysis:
PEST Forces
Industry
Analysis:
Porter 5 Forces
Internal
Company
Analysis:
Value Chain
External
Strategy Formulation Strategy Implementation
Feedback Learning
VISON
52
54. Strategic Management Model
Performance
Actual
Results
Evaluation
&
Control
Programs
Budget
Procedures
Activities
needed
to
accomplish
a plan
Cost of the
programs
Sequences
of steps
needed to
do the job
Objectives
Strategies
What
results to
accomplish
when
Plan to
achieve
mission &
objectives
Broad
guidelines
for
decision
making
Mission
Reasons
for
existence
Environmental
Scanning
Policies
Country
Analysis:
PEST Forces
Industry
Analysis:
Porter 5 Forces
Internal
Company
Analysis:
Value Chain
External
Strategy Formulation Strategy Implementation
Feedback Learning
VISON
54
55. 1-55
Strategies- form a comprehensive master plan that
states how the corporation will achieve its mission and
objectives
– Corporate
– Business
– Functional
Policies- the broad guidelines for decision making that
links the formulation of a strategy with its implementation
Basic Elements of Strategic Management
57. Corporate governance: the relationship among the
board of directors, top management and shareholders in
determining the direction and performance of the
corporation
Responsibilities of the Board of
Directors
58. • Sets corporate strategy, overall direction, mission, or
vision
• Hires and fires the CEO and top management
• Controls, monitors, or supervises top management
• Reviews and approves the use of resources
• Cares for shareholders’ interests
• Assures that the corporation is managed in accordance
with state laws, security regulations and conflict of
interest situations
Responsibilities of the Board of Directors
59. 2-59
Affiliated directors- not employed by the corporation,
handle legal or insurance work
Retired executive directors- used to work for the
corporation, partly responsible for past decisions affecting
current strategy
Family directors- descendants of the founder and own
significant blocks of stock
Members of a Board of Directors
