First things

Session2 MGT 490C Strategic Management

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First things

Any questions? Introductions


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StrategiesNetflix, Blockbuster, Redbox

"Getting Movies from a store or a mailbox, or just a box" (NYTimes, August 5, 2006) reading--available through Vista course site for MGT 490C (BA490C)

(https://vista.nau.edu) Path is "Course Content/Readings/Netflix"

How do the strategies of Netflix, Blockbuster, and Redbox differ?

Can you identify any of the areas for objectives listed on p. 7 of H&W that their objectives differ?

Distinguish each level of the hierarchy of strategy for each company, e.g., give an example of each level of strategy.

https://vista.nau.edu/

https://vista.nau.edu/


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Strategy

StrategyCurrent

Situation

Objectives

Environment

Goals


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Are these objective important to all three?

Profitability Efficiency Growth Shareholder wealth Utilization of resources Reputation Contributions to employees Contributions to society Market leadership Survival Personal needs of top management

Netflix, Blockbuster, Redbox

In what areas do their goals differ?Area Netflix Blockbuster Redbox

Profitability

Efficiency

Growth

Stockholder wealth

Utilization of resources

Reputation

Contributions to employees

Contributions to society

Market leadership

Survival


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Strategy…a plan for interacting with the competitive environment to achieve organizational objectives and goals

Strategy is a means to goals and objectives.

Without objectives and goals strategies lack direction.

Therefore, goals and objectives must be defined, or reexamined and redefined when formulating strategy.

(adapted from Daft, 2001)

Strategy—what is it?


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Major elements of strategy Strategy formulation—defining long-term

objectives & goals, developing long-range plans for the effective management of environmental opportunities and threats, taking into account strengths and weaknesses

Strategy implementation--Process by which strategies and policies are put into action through the development of programs, budgets, and procedures to achieve objectives


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Long-term Encompasses entire organization External—to determine

What the firm seeks to be What it seeks to accomplish (overall goals and objectives) Opportunities and threats in the environment The path it will take to succeed within the environment

Internal—to determine Capabilities, i.e., strengths and weaknesses The design of the organization Supporting functional (organizational)

objectives strategies plans

Strategy—where is its focus?


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Strategic management process

Reference Fig. 1.1 & 1.3 Environmental scanning Strategy formulation Strategy implementation Evaluation and control


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Distinguish the three elements of the hierarchy of strategy for each company.

Corporate Business Functional

Marketing Finance Operations


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Session 2Strategic Management

Any questions? Strategic management concepts

Strategy: meaning, perspective, & value Strategic management process Levels of strategy

Application of concepts to Netflix, Blockbuster, & Redbox

Session2 MGT 490C Strategic Management 13

Strategy Exercise

Question Response Eval. (A to F)

What is their strategy?•Who or what do they seek to be?•What do they seek to accomplish?•How will they pursue their goals & objectives?

Give an example of each level of strategy

Corporate

Business

Functional

What functional strategies are key to success?

What supporting functional objectives can you discern or suggest?


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How do their strategies differ?

Netflix, Blockbuster, Redbox


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Review questions

1. What is strategic management & why does it matter?

2. What are the major steps in the strategic management process.

3. Identify the 3 levels of strategy in the hierarchy of strategy.

4. What distinguishes each level of strategy?

Documents

First things