1、1Essentials of ManagementHarold Koontz Heinz Weihrich8rd ed.An International PerspectiveSurrey International Institute,DUFEZhenhua LIU2Chapter 5Surrey International Institute,DUFEZhenhua LIU2012.05 PW:76543214CHAPTER OBJECTIVES1.The mission,strategies,and policies.2.The strategic planning process.3.
2、The TOWS Matrix and the business portfolio matrix.4.Some major kinds of strategies/policies and the hierarchy of strategies.5.Porters generic strategies.6.The nature of premises and forecasts.CHAPTER OBJECTIVESDefinition of Strategy and Policies Strategy is the determination of the mission(or the fu
3、ndamental purpose)and the basic long-term objectives of an enterprise,and the adoption of courses of action and allocation of resources necessary to achieve these aims.Policies are general statements or understandings that guide managers thinking in decision making.Fig.5-1 The Strategic Planning Pro
4、cessThe Strategic Planning Process(Figure 5-1)Inputs to the organization Industry analysis Enterprise profile Orientation,values,and vision Mission(purpose),major objectives,and strategic intent Present and future external environment Internal environmentThe Strategic Planning Process cont.Developme
5、nt of alternative strategies Evaluation and choice of strategies Medium-and short-range planning Implementation through reengineering,staffing,leadership,and control Consistency testing and contingency planningMission,Objectives,and Strategic Intent Mission relates to the kind of business.Objectives
6、 are the end points for activities.Strategic intent is the commitment to win in the competitive environment.Definition of the TOWS Matrix The TOWS Matrix is a conceptual framework for a systematic analysis that facilitates matching the external threats and opportunities with the internal weaknesses
7、and strengths of the organization.Fig.5-2 TOWS Matrix for Strategy FormulationTOWS Matrix:4 Alternative Strategies SO strategy:MaxiMaxi WO strategy:MiniMaxi ST strategy:MaxiMini WT strategy:MiniMiniFig.5-3 Dynamics of the TOWS Matrix14SWOT Analysis:Evaluating Business Unit Opportunities SWOT analysi
8、s Strengths,weaknesses,opportunities,and threats Consider all issues systematically First:look into business unit Identify strengths and weaknesses Then:review operating environment Identify opportunities and threats presented Take advantage of opportunities Build on strengths Avoid threats Compensa
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11、intel;硬盘：maxtor主板：SelectionSWOT?Dell OnlineE-Business,Eighth Edition20Application of the TOWS Matrix for Mergers,Acquisitions,Joint Ventures,and Alliances Develop a TOWS Matrix for both companies before the merger,etc.Develop a TOWS Matrix of the joint company after the merger,etc.See Illustration o
12、f DaimlerChrysler merger in the closing section of Part 2Blue Ocean Strategy by Kim&Mauborgne and TOWS Matrix by Weihrich Explore opportunities in uncontested markets(Opportunities in the TOWS Matrix)Example:Southwest Airline Be aware of competition in red ocean markets(bloody competition).Example,t
13、odays personal computers Value innovation:total company commitment to create value for the customer Blue ocean strategy and the TOWS Matrix(SO or WO strategies in uncontested markets)Fig.5-4 Business Portfolio MatrixBusiness Portfolio Matrix Two dimensions Relative competitive position(market share)
14、Business growth rate Four positions Question marks Stars Cash cows DogsMajor Kinds of Strategies and Policies Products or Services What are some of the key questions to ask?Marketing What are some of the key questions to ask?Hierarchy of Company Strategies The corporate-level strategy.Executives cra
15、ft the overall strategy for a diversified company.Business strategies are developed usually by the general manager of a business unit.Functional strategies.The aim is to support the business and corporate strategies.Five Forces in Industry Analysis The competition among companies The threat of new c
16、ompanies entering the market The possibility of using substitute products or services The bargaining power of suppliers The bargaining power of the buyers or customers Porters Generic Strategies Overall Cost Leadership Strategy Differentiation Strategy Focused Strategy(low cost or differentiation)Pr
17、emising and Forecasting Planning premises are the anticipated environments in which plans are expected to operate.Environmental Forecasting Values and areas of forecasting Forecasting with the Delphi technique What are the typical steps of the technique?KEY IDEAS AND CONCEPTS FOR REVIEW Strategy Pol
18、icy Tactics Key elements in the strategic planning process TOWS Matrix by Weihrich TOWS Merger Matrix Blue ocean strategy Portfolio matrix by the Boston Consulting Group Major kinds of strategies Hierarchy of strategies Porters generic strategies Planning premises Environmental forecasting Delphi technique
