How Can the Business Be Positioned through Strategic Thinking?
-
date post
22-Oct-2014 -
Category
Business
-
view
603 -
download
0
description
Transcript of How Can the Business Be Positioned through Strategic Thinking?
Strategic Business Planning for Commercial Producers
How Can the Business Be Positioned Through Strategic Thinking?
Strategic Business Planning for Commercial Producers
Overview
• Strategic management• Your own strategic direction• Tools for analyzing strategic
direction• Determining strategic
alternatives
Strategic Business Planning for Commercial Producers
What is strategic management?
Strategic management is all about anticipating, driving, and capitalizing on change:– Anticipating: seeing the future– Driving: shaping the future– Capitalizing: making the most of the
future
Strategic Business Planning for Commercial Producers
What is strategic management?
“If it ain’t broke...Don’t fix it.”
“If it ain’t broke...You haven’t looked hard enough.
Fix it anyway!”
Tom PetersThriving on
Chaos
Strategic Business Planning for Commercial Producers
What is strategic management?
In any strategic planning process, we must answer three key questions:– Where are we now?– Where are we going?– How will we get there?
Strategic Business Planning for Commercial Producers
The Performance Gap
Time
Gap
Goal
Current Path
TODAY
Ou
tcom
e
Strategic Business Planning for Commercial Producers
How do we close the gap?• Define our current position ....
– with respect to customer needs, competitors, the general market situation
• Determine our goal ....– where should our firm be in 5, 10, …, years?
• Evaluate our firm and our market ….– Strengths, Weaknesses, Opportunities, Threats
• Start down the path that will lead to our goal– short - long-term action steps to move
toward our target
Strategic Business Planning for Commercial Producers
What is strategy?
– Operational effectiveness versus
strategy
– What is operational effectiveness?
Strategic Business Planning for Commercial Producers
What is strategy?• “Competitive strategy is about being
different.”• “Strategy is the creation of a unique and
valuable position in your industry.”• “Activities are the basic units of competitive
advantage.”– “Strategy is about combining activities.”– “Strategy is about creating fit among a
company’s activities.”
• “Strategy is choosing what not to do.”
Strategic Business Planning for Commercial Producers
What is strategy?
• Strategy is….– Looking longer term– Capitalizing on change– A stream of decisions– Focused on a purpose– Managing strategic risks– Creating a unique and valuable position– Choosing what not to do
Strategic Business Planning for Commercial Producers
The Strategic Management Process
Assessing the Situation
YourFirm
Vision
Strengths
Competitors
Mission
Objectives
MarketConditions
Goals
Customers
Opportunities Threats
Weaknesses
StrategyImplementation
CoreStrategy
FunctionalStrategies
Product Marketing
Volume Resources
Purchasing Finance
People Organization
Social
OperationsManagement
The Strategic Management Process
Strategic Business Planning for Commercial Producers
Strategic Business Planning for Commercial Producers