MindMap Gallery corporate strategic management
Strategic management, including 1. Introduction to corporate strategic management: corporate strategy, strategic business units, strategic management process, the difference between strategic management and other management models; 2. External environment analysis, etc.
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corporate strategic management
1. Introduction to corporate strategic management
company strategy
The enterprise determines its mission, sets its strategic goals based on the organization's external environment and internal conditions, plans to ensure the correct implementation and realization of the goals, and relies on the company's internal capabilities to put such plans and decisions into practice, as well as control during the implementation process a dynamic management process.
strategic business unit
It is a unit within a large company and the most basic independent business unit engaged in business activities. It provides certain products or services for the same market or different markets.
strategic management process
Strategic environment analysis, strategy formation and evaluation, strategy implementation and control
The difference between strategic management and other management models
1. Strategic management integrates various management functions 2. Strategic management is oriented towards the overall purpose of the organization 3. Strategic management focuses on a wider range of stakeholders 4. Strategic management includes multiple time horizons 5. Strategic management focuses on efficiency as well as benefit
The meaning and characteristics of strategic management
1.Meaning
2.Features
Features 1. Strategic management not only involves the formulation and planning of strategies, but also includes the management of implementing strategies, so it is a whole-process management.
Feature 2. Strategic management is not a static, one-time management, but a cyclical and dynamic management process.
2. Analysis of external environment
economies of scale
Economies of scale mean that the cost of producing a unit of product decreases as the scale of production increases.
Product differentiation advantage
Product differentiation advantage refers to the product trademark reputation and user loyalty of the original enterprise.
strategic group
A strategic group refers to a group of enterprises in the same industry that implement the same or similar strategies and have similar strategic characteristics.
The main factors that determine the entry barriers for new entrants in the industry are:
1. Economies of scale 2. Capital requirements 3. Switching costs 4. Sales channels 5. Product differentiation advantages 6. Other cost advantages not related to economies of scale
Several situations in which competition among existing enterprises will become fierce
1. There are many competitors or they are evenly matched 2. Industry growth is slow 3. The industry has very high fixed costs and inventory costs 4. There is no difference in the products of the industry or there are no industry switching costs 5. The overall scale and capabilities of the industry have been greatly improved 6. Competitors vary widely in strategies, goals, and organizational forms. 7. Industries are critical to the rise and fall of companies, and the greater the likelihood of success, the more intense and volatile competition among companies will be.
3. Internal environment analysis
Enterprise capabilities
Enterprise capabilities refer to the company's skills in coordinating resources to make them productive.
experience benefits
In the process of producing a certain product or service, as the accumulated product output increases, the cost of producing a unit product decreases.
Strategic objectives
Strategic goals refer to the expected results achieved by an enterprise when executing its mission within a certain period of time.
Sources of experience benefits
1. Improvement of labor efficiency 2. Division of labor and redesign of working methods 3. New production technology 4. Improvement of production equipment efficiency 5. Product standardization and product redesign 6. Effective use of resources
What a good instruction manual should contain
1. A statement of beliefs and values 2. The products and services the business will sell 3. The market in which the business will trade 4. How the market will be obtained 5. The technology the business will use 6. Attitude towards raising funds for growth
Principles that should be followed in formulating company strategic goals
1. Key principle 2. Consistency principle 3. Stability principle 4. Incentive principle 5. Feasibility principle 6. Quantitative principle
Briefly describe the SWOT matrix and strategic plan
1. The Swot matrix is a two-dimensional matrix with opportunities and threats in the external environment as one dimension and the strengths and weaknesses of the company's internal capabilities as another dimension. Managers start to formulate plans based on different combinations of SWOT.
2. Strategic plan: ① Overcome Weakness Quadrant ② Growth Quadrant ③ Retreat Quadrant ④ Deliver Strength Quadrant
4. Corporate-level strategic choices
Diversification strategy
Companies can seek development by getting involved in one or several other industries through mergers and acquisitions.
strategic combination
Use related strategies together to form an organic whole.
Joint venture:
A separate corporate entity jointly owned by two or more parent companies
The purpose and types of defense strategies
⑴Purpose
The defensive strategy does not seek to expand the scale of the enterprise, but to reduce the scale of the enterprise's operations through adjustments.
⑵Type
① withdraw capital and shift to strategy ② adjust strategy ③ abandon strategy ④ liquidation strategy
Several situations in which companies adopt capital withdrawal strategies
⑴Some areas of the enterprise are in stable or declining markets ⑵ The enterprise has a small market share in a certain field and the cost of expanding the market share is too high, or the market share is very high but it will cost more and more to maintain; ⑶ A certain area of the enterprise cannot bring satisfactory profits, and may even bring losses; ⑷If investment is reduced, sales will not drop too much; ⑸ If the company reduces investment in this field, it can make better use of idle resources; ⑹ A certain area of the enterprise is not a major part of the company’s operations
The meaning of PIMS and the strategic elements of PIMS analysis
The meaning of PIMS: It is the impact of market strategy on profits.
Strategic elements include
①Investment intensity ②Labor productivity ③Market competitive position ④Market growth rate ⑤Quality of products or services ⑥Innovation or differentiation ⑦Vertical integration ⑧Cost factors ⑨Current strategic efforts
5. Business-level strategic choices
Cost leadership strategy
The company's strategy is to become a cost leader in the industry by strengthening cost control internally and minimizing costs in areas such as research and development, production, sales, services, and advertising.
differentiation strategy
Enterprises provide distinctive products or services to meet the special needs of customers and form a competitive advantage strategy.
focus strategy
Enterprises focus their business strategies on a specific target market and provide special products or services to specific regions or specific buyer groups.
Factors to consider in strategic selection of business units
① Product differentiation ② Market segmentation ③ Special competitiveness
Reasons for companies to adopt differentiation strategies
By adopting a differentiated strategy, enterprises can defend themselves against the five competitive forces in the industry and obtain profits above the average level.
Specifically, it is mainly manifested in the following aspects:
① Form entry barriers ② Reduce customer sensitivity ③ Enhance bargaining power ④ Prevent the threat of substitutes
Types of main activities included in value activities
①Purchasing logistics ②Operation ③Shipping logistics ④Marketing and sales ⑤Service
Briefly describe the motivations and weaknesses of cost leadership strategy
⑴ Motivation
① Form entry barriers ② Enhance bargaining power ③ Reduce the threat of substitutes ④ Maintain a leading competitive position
⑵Weaknesses
①Competitors develop lower-cost production methods ②Competitors adopt imitation methods ③Customer needs change
Briefly describe the meaning and types of value activities
⑴Value activities refer to activities of different tangible and technical nature run by an enterprise ⑵ Value activities can be divided into two major types: main activities and supporting activities ⑶Main activities: ①Purchasing logistics ②Operation ③Shipping logistics ④Marketing and sales ⑤Service ⑷ Support activities: ① Procurement ② Technology development ③ Human resources management ④ Basic structure of the enterprise
6. Strategic selection at the functional level
market segmentation
In order to determine the customers or target markets of an enterprise, the entire market should be divided into several sub-markets with similar characteristics according to certain standards.
market penetration strategy
A marketing strategy in which an operating unit attempts to gain greater control in the market for its existing products or services.
market development strategy
A market strategy for business units to introduce their existing products or services to new customers
7. The company’s international strategy and business strategy
Franchise
The franchisor allows the grantee to use his business name, registered trademark, business management system and marketing methods to engage in business activities, and the grantee pays a certain price to the franchisor.
The purpose and motivation of the company’s international operations
⑴Purpose
①Profit ②Seeking stability
⑵ Motivation
①Leveraging technology’s leading positioning ②Leveraging an excellent and powerful brand name ③ Take advantage of economies of scale ④ Take advantage of low-cost resources
Characteristics of the company’s international operations
① Wider business space ② Complex business environment ③ Fierce competition ④ Difficulty in information management ⑤ Careful planning and organization
The meaning and form of international strategic alliance
⑴Meaning
International strategic alliance refers to a cooperation agreement formed by two or more potential or actual international competing enterprises for a common specific goal.
⑵Form
①Contractual agreement ②International alliance ③Equity participation ④Joint venture
Briefly describe the external factors that affect companies' entry into international markets
⑴Target market factors
①The size of the target country’s market ②The competitive structure of the target country’s market
⑵Production factors of the target country
The target country's production factor inputs and the quality and cost of market infrastructure have a greater impact on the decision-making on entry methods.
⑶Environmental factors of the target country
①The policies and regulations of the target country’s government on foreign enterprises ②Geographical location ③Economic status ④External economic relations ⑤Differences in society and culture between the home country and the target country ⑥Political risks
⑷Domestic factors
①Domestic market size ②Competition situation in the country ③Production costs in the country ④The national government’s policies on exports and overseas investment
Briefly describe the internal factors that affect a company's entry into the international market
⑴The company’s product factors
①Uniqueness of the product ②Services required by the product ③The production technology intensity of the product ④The adaptability of the product
⑵ Enterprise resource investment factors
① Resource abundance ② Investment desire
8. Strategy Implementation and Control
control
Controlling is the process of monitoring activities to ensure they are carried out as planned and to correct any deviations.
Steps in the Strategic Control Process
⑴Measure actual performance ⑵Compare actual performance with standards ⑶ Take management action to correct deviations or inappropriate standards.
Main issues of strategic control concern
⑴ Effectiveness of current strategy implementation ⑵ Prerequisites for formulating strategy ⑶ Early discovery of the necessity of revision of strategic plans and the possibility of optimization ⑷Whether there are any issues that may lead to a re-evaluation of strategic plans and overall strategic planning.
9. Organization for strategy implementation
Enterprise network
A wide range of alliances formed by small businesses in a collaborative manner for the purpose of improving the competitiveness of the business.
Corporate Restructuring
The company's restructuring is to achieve simultaneous and significant substantive improvements in key performance indicators such as cost, quality, service and speed, and to conduct a fundamental rethinking and fundamental redesign of corporate processes.
The meaning and characteristics of enterprise network
⑴Meaning: Enterprise network is an extensive alliance formed by some small enterprises in a collaborative manner, with the purpose of improving the competitiveness of enterprises.
⑵Characteristics: ①Most of them are small enterprises guided, funded and actively promoted by government departments to form enterprise networks.
10. Leadership and strategic levers for strategy implementation
lead
Leadership simply means influence, the art or process of exerting influence on people so that they willingly work toward achieving group goals.
What a successful leadership process should include
(1) Formulate an idea or plan that the enterprise can and should achieve, that is, the enterprise's long-term development goals; (2) Make strategic arrangements to realize the company’s vision and plan (3) Establish a strong resource collaboration system; (4) In this collaborative system, there is a group of enthusiastic core teams who are responsible for turning ideas into reality.
Type of general manager
1. Pioneering type 2. Conquering type; 3. Calm type; 4. Administrative type; 5. Financial management type; 6. Communicative type.