MindMap Gallery Strategic Management (Business Management Chapter 8)
Mind map of strategic management (Chapter 8 of Business Management). Strategy refers to the guiding ideology that runs through the decision-making or activities of a system in a certain historical period, and the decisions made under this guiding ideology that are related to the overall development of the system. Big plan.
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strategic management
strategy concept
The meaning of strategy
Strategy refers to the guiding ideology that runs through the decision-making or activities of a system within a certain historical period, as well as the major plans made under this guiding ideology that are related to the overall development of the system.
The focus of this kind of planning is to create a unique "positioning", make clear "choices" in the competition, and strengthen the "fitness" between various activities.
strategic elements
Business Scope
Resource allocation
Competitive Advantage
synergy
The content of the strategy
strategic thinking
Strategic objectives
Strategic layout
strategic mission
strategic countermeasures
strategic position
Strategy governs the overall behavior of an organization and is related to the future survival and development of the organization. It is the central activity of the highest authority of an organization and is an integrated and highest-level management activity.
The role of strategy
Strategy can make an organization more forward-looking, more proactive, and less reactive
Can avoid homogeneous competition, increase the difficulty of imitation, and enhance value creation
It can promote content communication, form a consensus from top to bottom, absorb the wisdom of all parties, form a synergy of ideas, and produce a multiplier effect, thereby making it possible for the organization to continue to grow and develop.
Enterprise strategy system
Corporate Strategy
Also called the overall strategy of the enterprise, it is the overall planning or layout of the enterprise.
business strategy
Also called business unit strategy, or sub-strategy
functional strategy
The meaning and process of strategic management
The meaning of strategic management
Enterprises aim to create value for major stakeholders such as customers, employees, and owners. Based on the analysis of the external environment and their own conditions and their changing trends, enterprises establish the mission and goals of the enterprise, formulate strategies, implement strategies, and implement them accordingly. Feedback on the implementation process and results, the dynamic process of evaluating, adjusting or formulating new strategies
strategic management process
Conduct strategic situation analysis
Establish the company’s mission and vision
Develop goals and strategies
implement strategy
strategic control
strategic environment analysis
external environment analysis
General environmental analysis
Political environmentP
Economic environmentE
Socio-Cultural EnvironmentS
Technology environmentT
Natural environmentN
Industry environment analysis
Industry economic characteristics
market status
Industry size
Overall level of the industry
Industry profitability
Competitive Structure Analysis—Porter’s “Five Forces of Competitiveness”
content
Competition among companies within the industry
Bargaining power of suppliers
Bargaining power of customers
new entrant
replacement product
other stakeholders
focus
Determine the most appropriate and defensible strategic positioning of a company within a specific industry
Select strategies to maintain and improve the company's competitive position in the industry in which it competes
New industries to enter when considering a diversification strategy
internal condition analysis
Resource analysis
Analyze existing resources
Analyze resource utilization
Analyze resource resilience
Resource balance analysis
Capability and core competency analysis
Enterprise capabilities refer to the skills of enterprises to integrate internal and external resources to continuously increase value creation. Generally speaking, resources themselves do not produce competitiveness. Competitiveness comes from the special integration of multiple resources.
Core competencies have three distinct characteristics:
Able to bring huge value to customers and businesses
Able to support multiple core products
Difficult for competitors to copy or imitate
The components of an enterprise's core capabilities include four aspects:
The level and structure of knowledge and skills of all employees
The enterprise's technical system, including technical hardware system and software system
Enterprise management system
company culture
Criteria for judging the ability to generate lasting competitive advantage include value, uniqueness, difficulty in imitating and irreplaceability
Business status analysis
Operating status analysis is to analyze and evaluate the company's recent performance from the perspective of value creation, including evaluation from both financial and non-financial aspects.
Often conducted through financial reports, customer and employee surveys or interviews, market analysis or research reports, internal staffing standards, and productivity reports, etc.
Experience benefit analysis
Experience benefit means that in the process of producing a certain product or service, as the cumulative product output increases, the cost of producing the unit product decreases (experience refers to the cumulative output or service volume so far)
value chain analysis
An important tool for strategy formulation, the value chain refers to the collection of all different but interrelated value-added activities within an enterprise.
Classification
basic activities
internal logistics
production process
external logistics
marketing
After-sales service
supportive activities
Enterprise infrastructure
human resource Management
technology R & D
Material procurement
Analysis and Meaning
Analyze each activity in the value chain to discover the strengths and weaknesses of the business
Analyze the intrinsic connections between various activities in the value chain, optimize the connection of cross-department activities, and generate synergistic effects
Understand the relevant costs of each activity and its profit sources through analysis, grasp the key points, and even make trade-offs to implement effective business outsourcing
Analyze and compare the value chains of competitors, exploit strengths and avoid weaknesses, reconstruct the corporate value chain, and implement differentiated competition
Embed the enterprise value chain into a wider value chain system such as suppliers, sales, customers or partners for analysis to achieve supply chain management
SWOT comprehensive evaluation
step
Based on the analysis of the external environment, list the development opportunities (O) and threats (T) of the enterprise
Based on the internal environment analysis, list the company’s strengths (S) and weaknesses (W)
Draw a SWOT matrix
Perform combinatorial analysis
strategic plan
SO
WO
ST
WT
strategic goal setting
Strategic goals are the performance levels and performance standards that the company hopes to achieve within a specified period of time under the premise of the established corporate mission.
Our Mission
The so-called corporate mission is the role and responsibility that an enterprise should play in social progress and social and economic development, that is, the reason for the existence of the enterprise
Corporate philosophy
Refers to the guiding ideology, basic views and codes of conduct for handling various relationships established by an enterprise for its business activities or methods.
Corporate purposes
Refers to what kind of business activities the enterprise should engage in now and in the future, and what type of enterprise or organization it should become.
Strategic objectives
Corporate vision and goals are the company's outlook for the future (10 to 20 years or even longer) when the mission is achieved, that is, what the company hopes to develop in the future. It is a dream and forward-looking thinking, and a conceptualization of the future imagination. Playing a role in mobilizing passion and inspiring progress
Long-term corporate goals refer to goals between 3 and 5 years. The long-term corporate goals outline the main direction of the company and the relationship between the corporate mission and the company's activities. They are the basis for setting short-term goals.
Corporate short-term (or annual) goals are to establish specific performance indicators and levels within one year or less.
strategy type
Corporate Strategy
Development strategy (also called expansion strategy or growth strategy)
internal growth strategy
integrated strategy
vertical integration
Horizontal (horizontal) integration
Diversification Strategy
Concentric Diversity
horizontal diversification
Compound (uncorrelated) diversification
intensive strategy
external expansion strategy
Strategic Alliance
virtual operation
Business outsourcing
mergers and acquisitions
stable strategy
defensive strategy
harvest strategy
Adjust strategy
abandon strategy
liquidation strategy
competitive strategy
low cost strategy
Differentiation Strategy
Best Cost Supplier Strategy
centralization strategy
coopetition strategy
No Competition (Blue Ocean) Strategy
Background and concepts
Blue ocean strategy means that companies shift their focus from the supply side of the market to the demand side, from focusing on and surpassing competitors to providing value for buyers, thereby getting rid of the bloody competition in the known market space - the "Red Ocean" and creating a new market space. "Blue Ocean"
The cornerstone of blue ocean strategy is value innovation
Formulation of blue ocean strategy
Enterprises look at the market across existing competition boundaries, screen and reorder buyer value elements in different markets, reconstruct market and industry boundaries, and open up huge potential demand
step
Cull
reduce
Increase
create
Strategic Choice
strategic selection method
BCG matrix method
By constructing a two-dimensional coordinate chart of market growth rate and market share indicators
Business Categories
star
develop
cash cow
positive harvest
risk
support
have a future
give up
No future
thin dog
liquidation
give up
GE nine-quadrant method
It uses a 3*3 matrix to determine the position of each business unit in the overall business portfolio based on the industry's attractiveness and the competitiveness of the business units, and formulates different strategies accordingly.
Development type (green zone)
development strategy
Selective investment category (yellow zone)
invest
Better conditions
Gain or give up strategy
the remaining
Gain or give up class
harvest strategy
And profit
abandon strategy
Unprofitable and occupying funds
SWOT model method
SO quadrant
development strategy
WO quadrant
Stabilize first and then develop strategy
WT quadrant
Defensive strategy, maintaining or shrinking operations
ST quadrant
Diversification Strategy
Factors affecting strategic choices
Enterprise's dependence on external environment
Manager’s attitude towards risk
The company’s past strategy
power relations in business
Middle managers and functional staff
strategy implementation
The importance of strategy implementation
Strategy implementation is the process of executing strategic plans or strategic plans for strategic goals and putting strategies into practical actions.
strategy implementation process
Principles of strategy implementation
moderate rationality principle
The principle of unified leadership and unified command
contingency principle
stages of strategy implementation
strategic launch stage
strategic planning stage
strategy execution stage
Strategic assessment and control phase
strategic control
Strategic control refers to activities in which corporate strategic managers and those involved in strategy implementation comprehensively review the implementation status of the strategy based on strategic goals and action plans, and promptly discover and correct deviations.
Control type
At the enterprise level, strategic control focuses on maintaining an overall balance among the various activities within the enterprise.
At the operating unit level, tactical control dominates, and control is primarily about maintaining and improving the competitive position of the operating unit.
Within each functional department, operation control focuses on improving function-based strengths and capabilities
control process
Determine control objects and priorities
Establish control standards
Measure actual performance
Evaluation analysis
take corrective measures
Evaluation method
Strategy both begins and ends with value creation
The traditional method focuses on financial evaluation, while the modern method emphasizes comprehensive balanced score evaluation.
The balanced scorecard conducts comprehensive evaluation from four perspectives
financial perspective
Customer perspective
Enterprise internal
future perspective
strategic control approach
From the perspective of control time
prior control
Process (anytime) control
ex post control
From the perspective of control business
Financial Control
production control
marketing control
QC
Cost Control
strategic control means
Common control methods used by enterprises include inspection method, analysis report method, budget method (income, expenditure, cash, liabilities), ratio analysis method (financial ratio method, operating ratio method), and audit method (external audit, internal audit, management audit) , Profit and Loss Control Law, Network Control Law, etc.