企业战略管理-第五章

1、企业战略管理_第五章Chapter OutlineLong-Term ObjectivesTypes of StrategiesIntegration Strategies2Chapter Outline (contd)Intensive StrategiesDiversification StrategiesDefensive Strategies3Chapter Outline (contd)Michael Porters Generic StrategiesMeans for Achieving StrategiesFirst Mover Advantages4Chapter Outli

2、ne (contd)OutsourcingStrategic Management in Nonprofit & Governmental OrganizationsStrategic Management in Small Firms5Strategies for taking the hill wont necessarily hold it. Amar BhideStrategies in ActionThe early bird may get the worm, but the second mouse gets the cheese. Unknown6Strategies in A

3、ction- Quest for higher revenues- Quest for higher profitsCompanies Embrace Strategic Planning7Results expected from pursuing certain strategiesStrategies represent actions to accomplish long-term objectivesLong-Term Objectives8Long-Term ObjectivesObjectives -QuantifiableMeasurableRealisticUnderstan

4、dableChallenging9Long-Term ObjectivesObjectives -HierarchicalObtainableCongruentTime-line10Long-Term ObjectivesStrategists Should Avoid -Managing by ExtrapolationManaging by CrisisManaging by SubjectivesManaging by Hope11Varying Performance Measures by Organizational Level12Financial vs. Strategic O

5、bjectivesFinancial ObjectivesGrowth in revenuesGrowth in earningsHigher dividendsHigher profit marginsHigher earnings per shareImproved cash flow13Financial vs. Strategic ObjectivesStrategic ObjectivesLarger market shareQuicker on-time delivery than rivalsQuicker design-to-market times than rivalsLo

6、wer costs than rivalsHigher product quality than rivalsWider geographic coverage than rivals14Financial vs. Strategic ObjectivesTrade-OffMaximize short-term financial objectives harm long-term strategic objectivesPursue increased market share at the expense of short-term profitabilityTradeoffs relat

7、ed to risk of actions; concern for business ethics; need to preserve natural environment; social responsibility issues15Not Managing by ObjectivesManaging by extrapolationManaging by crisisManaging by subjectivesManaging by hope16The Balanced ScorecardRobert Kaplan & David Norton -Strategy evaluatio

8、n & control techniqueBalance financial measures with non-financial measuresBalance shareholder objectives with customer & operational objectives17Types of StrategiesOperational LevelFunctional LevelDivision LevelCorp LevelA Large Company18Types of StrategiesOperational LevelFunctional LevelCompany L

9、evelA Small Company19Types of StrategiesVertical IntegrationStrategiesForward IntegrationBackwardIntegrationHorizontalIntegration20Vertical Integration StrategiesGain Control Over -DistributorsSuppliersCompetitors21Forward Integration StrategiesGain Control Over -DistributorsRetailers22Forward Integ

10、ration StrategiesGuidelines -Current distributors expensive or unreliableAvailability of quality distributors limitedFirm competing in industry expected to grow markedlyFirm has both capital & HR to manage new business of distributionCurrent distributors have high profit margins23Backward Integratio

11、n StrategiesOwnership or Control -Firms suppliers24Backward Integration StrategiesGuidelines -Current suppliers expensive or unreliable# of suppliers is small; # of competitors is largeHigh growth in industry sectorFirm has both capital & HR to manage new businessStable prices are importantCurrent s

12、uppliers have high profit margins25Horizontal Integration StrategiesOwnership or Control -Firms competitors26Horizontal Integration StrategiesGuidelines -Gain monopolistic characteristics w/o federal government challengeCompetes in growing industryIncreased economies of scale major competitive advan

13、tagesFaltering due to lack of managerial expertise or need for particular resource27Types of StrategiesIntensiveStrategiesMarketPenetrationMarketDevelopmentProductDevelopment28Intensive StrategiesIntensive Efforts -Improve competitive position with existing products29Market Penetration StrategiesInc

14、reased Market Share -Present products/servicesPresent markets Greater marketing efforts30Market Penetration StrategiesGuidelines -Current markets not saturatedUsage rate of present customers can be increased significantlyShares of competitors declining; industry sales increasingIncreased economies o

15、f scale provide major competitive advantage31Market Development StrategiesNew Markets -Present products/services to new geographic areas32Market Development StrategiesGuidelines -New channels of distribution reliable, inexpensive, good qualityFirm is successful at what it doesUntapped/unsaturated ma

16、rketsExcess production capacityBasic industry rapidly becoming global33Product Development StrategiesIncreased Sales -Improving present products/servicesDeveloping new products/services34Product Development StrategiesGuidelines -Products in maturity stage of life cycleIndustry characterized by rapid

17、 technological developmentCompetitors offer better-quality products comparable pricesCompete in high-growth industryStrong R&D capabilities35Types of StrategiesDiversificationStrategiesRelated DiversificationUnrelatedDiversification36DiversificationRelated When their value chains posses competitivel

18、y valuable cross-business strategic fitsUnrelated When their value chains are so dissimilar that no competitively valuable cross-business relationships exist 37Related Diversification Preferred To Capitalize on:Transferring competitively valuable expertiseCombining the related activities of separate

19、 businesses into a single operation to lower costsExploiting common use of a well-known brand nameCross-business collaboration to create competitively valuable resource strengths and capabilities38Diversification StrategiesLess Popular -More difficult to manage diverse business activitiesHowever -Th

20、e greatest risk of being in a single industry is having all your eggs in one basket39Related Diversification May be Effective When:An organization competes in a no-growth or a slow growth industryAdding new, but related, products would significantly enhance the sales of current productsNew, but rela

21、ted products could be offered at highly competitive prices40Related Diversification May be Effective When:New, but related, products have seasonal sales levels that counterbalance an organizations existing peaks and valleysAn organizations products are currently in the declining stage of the product

22、s life cycleAn organization has a strong management team41Conglomerate Diversification StrategiesGuidelines -Declining annual sales & profitsCapital & managerial ability to compete in new industryFinancial synergy between acquired and acquiring firmsCurrent markets for present products - saturated42

23、Unrelated DiversificationFavors capitalizing on a portfolio of businesses that are capable of delivering excellent financial performanceEntails hunting to acquire companies:Whose assets are undervaluedThat are financially distressedWith high growth potential but are short on investment capital43Unre

24、lated Diversification May be Effective When:Revenues derived from an organizations current products or services would increase by adding new unrelated productsAn organization competes in a highly competitive or a no growth industryAn organizations current distribution channels can be used to market

25、new products to existing customers44Unrelated Diversification May be Effective When:New products have countercyclical sales patterns An organizations basic industry is experiencing declining annual sales and profitsAn organization has the capital and managerial talent to compete successfully in a ne

26、w industry45Unrelated Diversification May be Effective When:An organization has the opportunity to purchase an unrelated business as an attractive investment opportunityThere exists financial synergy between the acquired and acquiring firmExisting markets for the present products are saturatedAntitr

27、ust action could be charged against a company46Types of StrategiesDefensiveStrategiesRetrenchmentDivestitureLiquidation47Retrenchment StrategiesRegrouping -Cost & asset reduction to reverse declining sales & profit48BankruptcyChapter 7 LiquidationChapter 9 MunicipalitiesChapter 11 Reorganization for

28、 CorporationsChapter 12 Family FarmersCheaper 13 Reorganization for Small Businesses and Individuals49Retrenchment StrategiesGuidelines -Failed to meet objectives & goals consistency; has distinctive competenciesFirm is one of weaker competitorsInefficiency, low profitability, poor employee morale,

29、pressure for stockholdersStrategic managers have failedRapid growth in size; major internal reorganization necessary50Divestiture StrategiesSelling a division or part of an organization51Divestiture StrategiesGuidelines -Retrenchment failed to attain improvementsDivision needs more resources than ar

30、e availableDivision responsible for firms overall poor performanceDivision is a mis-fit with organizationLarge amount of cash is needed and cannot be raised through other sources52Liquidation StrategiesCompanys assets, in parts, for their tangible worthSelling53Liquidation StrategiesGuidelines -Retr

31、enchment & divestiture failedOnly alternative is bankruptcyMinimize stockholder loss by selling firms assets54Michael Porters Generic StrategiesCost Leadership StrategiesDifferentiation StrategiesFocus Strategies5556Generic StrategiesIn conjunction with differentiationEconomies or diseconomies of sc

32、aleCapacity utilization achievedLinkages w/ suppliers & distributorsCost Leadership(Type 1 and Type 2)57Cost LeadershipWays of ensuring total costs across value chain are lower than competitors total costsPerform value chain activities more efficiently than rivals and control factors that drive cost

33、sRev the firms overall value chain to eliminate or bypass some cost-producing activities58Cost LeadershipCan be especially effective when:Price competition among rivals is vigorousRivals products are identical and supplies are readily availableThere are few ways to achieve differentiationMost buyers

34、 use the product in the same wayBuyers have low switching costsBuyers are large and have significant powerIndustry newcomers use low prices to attract buyers59Generic StrategiesMany price-sensitive buyersFew ways of achieving differentiationBuyers not sensitive to brand differencesLarge # of buyers

35、w/bargaining powerLow Cost Producer Advantage60Generic StrategiesGreater product flexibilityGreater compatibilityLower costsImproved serviceGreater convenienceMore featuresDifferentiation (Type 3)61DifferentiationCan be especially effective when:There are many ways to differentiate and many buyers p

36、erceive the value of the differencesBuyer needs and uses are diverseFew rival firms are following a similar differentiation approachTechnology change is fast paced and competition revolves around evolving product features62Generic StrategiesIndustry segment of sufficient sizeGood growth potentialNot

37、 crucial to success of major competitorsFocused Strategies (Type 4 & 5)63Focused Strategy Can be especially effective when:The target market niche is large, profitable, and growingIndustry leaders do not consider the niche crucialIndustry leaders consider the niche too costly or difficult to meetThe

38、 industry has many different niches and segmentsFew, if any, other rivals are attempting to specialize in the same target segment6465Means for Achieving StrategiesTwo or more companies form a temporary partnership or consortium for purpose of capitalizing on some opportunityJoint Venture/Partnering

39、-66Reasons why Mergers and Acquisitions FailIntegration difficultiesInadequate evaluation of targetLarge or extraordinary debtInability to achieve synergy67Means for Achieving StrategiesR&D partnershipsCross-distribution agreementsCross-licensing agreementsCross-manufacturing agreementsJoint-bidding

40、 consortiaCooperative Arrangements -68Means for Achieving StrategiesManagers who must collaborate daily; not involved in developing the ventureBenefits the company not the customersNot supported equally by both partnersMay begin to compete with one of the partnersWhy Joint Ventures Fail -69Joint Ven

41、turesGuidelines -Synergies between private and publicly held Domestic with foreign firm, local management can reduce riskComplementary distinctive competenciesResources & risks where project is highly profitable (e.g. Alaska Pipeline)Two or more smaller firms competing w/larger firmNeed to introduce

42、 new technology quickly70Reasons why Mergers and Acquisitions FailToo much diversificationManagers overly focused on acquisitionToo large an acquisitionDifficult to integrate different organizational culturesReduced employee moral due to layoffs and relocations71Means for Achieving StrategiesProvide

43、 improved capacity utilizationBetter use of existing sales forceReduce managerial staffGain economies of scaleSmooth out seasonal trends in salesGain new technologyAccess to new suppliers, distributors, customers, products, creditorsMergers & Acquisitions72Recent MergersAcquiring FirmAcquired FirmIBMAscential Software Philip MorrisPT Hanjaya Mandala SampU.S.