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Lecture One History, Theories, Concept and Process.

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1 lecture One History, Theories, Concept and Process

2 Emerge and development of strategy management Phase 1: the formation of modern enterprises –1820s to the beginning of 20th century –Competitive concept? Phase 2: scientific management (mass production) –Before 1930s –The theory of Taylor, Fayol and Weber

3 Phase 3 : Marketing management (mass sale) –1930s to 1950s –Market oriented Phase 4 : strategic management –After 1960s 1960s: grow up 1970s: development 1980s: consideration 1990s-now: development further –Value oriented

4 –Big or small? –Diversification or focus ? –Entrepreneur’s matter ? –Competition or cooperation? Success based on strategy

5 Ten Schools of Thought The Design School (设计学派) The Planning School (计划学派) The Positioning School (定位学派) The Entrepreneurial School (企业家学派) The Cognitive School (认识学派) The Learning School (学习学派) The Power School (权势学派) The Cultural School (文化学派) The Environmental School (环境学派) The Configuration School (结构学派)

6 Thoughts of strategy Planning School Design school Positioning School Entrepreneurial School Cognitive School Learning School Power School Cultural School Environmental School Configuration School

7 Strategy : basic concept perspecti ve positionplan pattern ploy Plan (计划) Pattern (模式) position (定位) perspective( 观 念 ) Poly (计谋)

8 plan pattern

9 perspective position

10 ploy story A European manager and a Asian manager meet a bear in the forest. The Asian manager get out a sports shoes from his bag. European manager: “you can’t run faster the bear” Asian manager: “but I can run faster than you”

11 Process of strategic management mission External environment Internal environment Strategic analysis Strategic choice

12 Long-term objective General strategy Competitive strategy Yearly objective Competitive strategy Functional strategy policy structurecontrolreform Strategic choice implementation control

13 Levels of business strategies

14 Mission of the business Main fields of business Objectives of business Philosophy of management Public image Self-assessment

15 Examples: Mission and Vision Statements Empower people through great software anytime, anyplace, and on any device. Microsoft Corporation

16 Our vision: Getting to a billion connected computers worldwide, millions of servers, and trillions of dollars of e-commerce. Intel’s core mission is being the building block supplier to the Internet economy and spurring efforts to make the Internet more useful. Being connected is now at the center of people’s computing experience. We are helping to expand the capabilities of the PC platform and the Internet. Intel

17 Otis Elevator Our mission is to provide any customer a means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world. Our business is renting cars. Our mission is total customer satisfaction. Avis Rent-a-Car


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