Business policies and Strategies Basic concepts Dr. Jerry L. huxell
Dr. Jerry L. Huxell Business Policies and Strategies Basic Concepts
Objectives of subject To provide a deeper understanding of strategic analyses know the situation To discuss in more detail the strategic options that a firm can consider -make a decision To explore rational and creative approaches to strategy implementation -the tough part of strategy To discuss how to evaluate and control the strategy selected Dr. Jerry L. huxell
Dr. Jerry L. Huxell Objectives of Subject • To provide a deeper understanding of strategic analyses – know the situation. • To discuss in more detail the strategic options that a firm can consider – make a decision. • To explore rational and creative approaches to strategy implementation – the tough part of strategy. • To discuss how to evaluate and control the strategy selected
Charles darwin "It is not the strongest of the species that survives, nor the most intelligent; it is the one that is most adaptable to change 27 Survival or success depends on the ability to adapt and compete in todays ever-changing world-change or die Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Charles Darwin • “It is not the strongest of the species that survives, nor the most intelligent; it is the one that is most adaptable to change.” • Survival or success depends on the ability to adapt and compete in today’s ever-changing world – change or die
Quote Without a strategy, an organization is like a ship without a rudder, going around in circles. It's like a tramp it has no place to 27 Joel ross and michael Kami Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Quote • “Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it has no place to go.” • Joel Ross and Michael Kami
Management Challenges Power has shifted to the customer Size is not necessarily an advantage Accelerating rates of change in technology Globalization of business- new competitors Changing nature of the workforce Resource shortages Maintaining a competitive advantage Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Management Challenges • Power has shifted to the customer • Size is not necessarily an advantage • Accelerating rates of change in technology • Globalization of business – new competitors • Changing nature of the workforce • Resource shortages • Maintaining a competitive advantage
Eⅴ olution of Strategy 1950s Budgeting 1960s Long range planning 1970s Strategy planning 1980s Strategic management 1990s Strategic innovation 2000s Strategic flexibility Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Evolution of Strategy • 1950s Budgeting • 1960s Long range planning • 1970s Strategy planning • 1980s Strategic management • 1990s Strategic innovation • 2000s Strategic flexibility
Strategy Strategy is the direction and scope of an organization over the long term which achieves advantages for the organization through its configuration of resources n a changing environment and to fulfill stakeholder expectations Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Strategy • Strategy is the direction and scope of an organization over the long term which achieves advantages for the organization through its configuration of resources within a changing environment and to fulfill stakeholder expectations
Strategy Strategy is the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be >Lynch Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Strategy • Strategy is the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. »Lynch
Characteristics of Strategic Decisions Long-term direction Advantage over the competition Scope of an organization's activities Concerned with matching the firms resources and competencies to the environment Effects operational decisions affected by stakeholder expectations Dr. Jerry L. huxell
Dr. Jerry L. Huxell Characteristics of Strategic Decisions • Long-term direction • Advantage over the competition • Scope of an organization’s activities • Concerned with matching the firm’s resources and competencies to the environment • Effects operational decisions • Affected by stakeholder expectations
Strategic Decisions Complex in nature Made in situations of uncertainty Demand an integrated approach to managing May change external relationships ·Mav Ly involve diffie cult internal changes Dr. Jerry L. Huxell
Dr. Jerry L. Huxell Strategic Decisions • Complex in nature • Made in situations of uncertainty • Demand an integrated approach to managing • May change external relationships • May involve difficult internal changes
