Session02: Strategic Management Process Manning School of Business Session02: Strategic Management Process Dr. Mark H. Mortensen 66.490.211 and 212 Tues &Thurs 2:00 to 3:15 3:30 to 4:45

Today Attendance Lecture on Chapter 1 in book (continued) Bring info on your group’s company to class Attendance Lecture on Chapter 1 in book (continued) Discussion on Strategic Management Process Groups create and give presentations on Assignment #2 Go over Assignment #3 (Due Thursday)

Understanding the Strategic Management Process Strategic management process: Building a careful understanding of how the world is changing and the a knowledge of how those changes might affect a particular firm Understanding strategy and performance Environmental and Internal scanning Strategy formulation Strategy implementation

Today Attendance Lecture on Chapter 1 in book (continued) Discussion on Strategic Management Process Groups create and give presentations on Assignment #2 Go over Assignment #3 (Due Thursday)

Strategic Management Process: Step-by-Step [1]

Strategic Management Process: Environmental Scanning TOOLS PEST(EL) analysis Porter 5-Forces model Company positioning chart Product positioning charts BCG product matrix GE product matrix Core competency analysis Value chain analysis Bowman’s Strategy Clock Assumptions Constraints Truisms

Strategic Management Process: Strategy Formulation TOOLS All the tools from Environmental Scanning SWOT Analysis (TOWS, IFAS, EFAS) Unique Selling Point Analysis Scenario Planning

Strategic Management Process: Strategy Implementation TOOLS Vision Statement Mission Statement Strategic Goals Change Management Programs Projects

Strategic Management Process: Evaluation and Control TOOLS Everything else you have learned in Business School

Strategic Management Process: Examples Kenichi Omhae and Yamaha Louis Gerstner and IBM Matt Desch and Telcordia Technologies “In business as on the battlefield, the object of strategy is to bring about the condition most favorable to one’s own side.” - Kenichi Ohmae “The next thing is: we can make IBM even better, ... We brought IBM back but we're gunning for leadership.” Providence and Warburg Pincus together put just over $300 million in equity towards buying Telcordia in 2004. The rest of the $1.35 billion headline purchase price was funded with borrowed money. It was a dangerous investment, but they were able to sell it to Ericsson for $1.15 billion paying down Telcordia debt and are holding onto holding onto the company’s cash, helping turn a slim profit.

Today Attendance Lecture on Chapter 1 in book (continued) Discussion on Strategic Management Process Groups create and give presentations on Assignment #2 Go over Assignment #3 (Due Thursday)

Group Workshop: Your Company Take 20 minutes: Pull together your group information about the company that your group has been assigned to. Fill out the information on the profile sheet Present the sheet (via overhead projector) to the class (3-5 minutes).

Today Attendance Lecture on Chapter 1 in book (continued) Discussion on Strategic Management Process Groups create and give presentations on Assignment #2 Go over Assignment #3 (Due Thursday)

Assignment #3: Written report on Starbucks and Dunkin’ Donuts Due by: Thursday Each person visit both a Starbucks and a Dunkin’ Donuts retail store and write a report. Describe and contrast the atmospheres, types of menu items, service quality, and prices Describe and contrast the patrons and how they react to the above Talk to at least one person in the store about why they come there and relate their opinions Describe your own experiences at each of them, from this and other visits. Visit the Starbucks and Dunkin’ Donuts web sites: Try to determine their target markets, mission statements, and anything else you can glean about their strategies – write a paragraph or two on each Contrast the two web sites Contrast the apparent strategies of the two Discuss how the information on the web sites does or does not match the reality in each case. A few informal pages should suffice – if it wants to be longer, OK.

Other assignment Read Chapter 3 of textbook Read through the material on PEST(EL) analysis

Strategic Management – Spring 2013