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MindMap Gallery Chapter 1 Corporate Strategy and Business Decisions (Section 1)

Chapter 1 Corporate Strategy and Business Decisions (Section 1)

About the Economist Business Administration Major Chapter 1 Section 1 Corporate Strategy Mind Map, including the connotation of corporate strategy and corporate strategic management, the formulation of corporate strategy, and the implementation of corporate strategy.

Edited at 2023-12-03 20:48:49

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Chapter 1 Corporate Strategy and Business Decisions (Section 1)

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Chapter 1 Corporate Strategy and Business Decision-making

Section 1 Overview of Corporate Strategy

1. The connotation of corporate strategy and corporate strategic management

(1) The connotation of corporate strategy

Definition: In the face of fierce market competition, enterprises make overall and long-term plans in order to seek their own survival and development based on summarizing historical experience, investigating the current situation, and predicting the future.

feature

Globality and Complexity

stability and dynamics

Returns and Risks

Classification of corporate strategies

overall corporate strategy

It is the highest-level strategy of the enterprise, the general program of development, and the highest program of all corporate actions, revealing the vision and mission of the enterprise. How to judge whether it is an overall strategy? : 1. Maintain the original business and resource allocation and operate stably; 2. Enter new areas and continue to expand; 3. Suppress the development of certain businesses, prevent corporate risks or carry out large-scale reforms to the business portfolio; 4. Exit certain areas.

corporate business strategy

Also known as: business unit strategy or competitive strategy, it is a self-strategy of the overall enterprise strategy and an operational-level strategy. The focus is to improve the competitive position of a business unit's products and services in its industry or market segment.

corporate functional strategy

Implement and support overall strategy and business strategy, as well as strategies developed by specific functional departments. Including: manufacturing strategy, marketing strategy, financial management strategy, human resources strategy, research and development strategy, etc.

(2) The connotation of corporate strategic management

Author: American Ansoff "From Strategic Planning to Strategic Management"

Refers to: the dynamic management process of corporate strategy from analysis and formulation, evaluation and selection, and implementation of control to enable the enterprise to achieve its strategic goals. It is concerned with the long-term stability and sustainable development of the enterprise. It is a process of continuous recycling, continuous improvement, and continuous innovation. It’s a spiral process

The basic task: to achieve the company's specific stage strategic goals; the highest task is: to realize the company's mission

Main strategic managers: divided into high-level (overall), middle-level (business), and grass-roots (functional);

The connotation of corporate strategy and corporate strategic management

Definition of corporate strategy

Corporate strategy is the overall plan and action plan formulated by a company to achieve long-term goals

Corporate strategy needs to clarify the development direction, goals, tasks and measures of the company

Corporate strategy needs to reflect the core competitiveness and competitive advantages of the company

Types of business strategies

Overall strategy, business strategy and functional strategy

Competitive strategy, cooperation strategy and innovation strategy

The definition of enterprise strategic management

Enterprise strategic management is a series of management activities carried out by enterprises to achieve strategic goals

Enterprise strategic management requires formulating strategic planning, implementing strategic control and evaluating strategic effects

Enterprise strategic management requires coordinating internal and external resources of the enterprise to achieve strategic goals

Principles of Enterprise Strategic Management

2. Formulation of corporate strategy

Meaning: Starting from the overall situation of the enterprise, realizing the enterprise's mission and strategic goals as the guiding direction, comprehensively analyzing the dynamic changes of the industry, evaluating and predicting the actions of competitors, and formulating the entire process of corporate strategy. The process of formulating a corporate strategy is the process of strategic decision-making

(1) Determine corporate vision, mission and goals

Corporate vision

1. The corporate vision is jointly formulated by all internal personnel; 2. It includes two parts: belief and future prospects, answering the question "Who am I?"

Vision Management: Develop, Target, Implement

Enterprise mission

The fundamental nature and reason for existence of the business; answer the question What is my business?

mission positioning

1. Survival purpose positioning

create customers

2. Business philosophy positioning

3. Corporate image positioning

business goals

What purpose is achieved

(2) Prepare strategic plan

(3) Evaluate and select strategic options

3. Implementation of corporate strategy

(1) Steps of corporate strategy implementation

(2) Implementation model of corporate strategy

Command type

Senior management directly issues orders and executes them

transformational

Senior management is directly involved in the implementation of strategy

cooperative

Top management collaborates with other levels

cultural type

The participation of all employees in the enterprise requires high quality of employees

growth

The bottom-up formation of grassroots units stimulates the creativity of managers at all levels, which is conducive to the formulation and implementation of perfect strategies, so that the company's capabilities can be fully exerted. It has high requirements for managers and correctly evaluates various suggestions from the lower levels.

(3) 7S model

1. Hardware

strategy

structure

organize

2. Software

shared values

personnel

technology

style

4. Control of corporate strategy

(1) Principles of enterprise control

ensure target principle

principle of moderate control

timely control principle

adaptability principle

(2) Enterprise control process

Set performance standards

Measure actual performance

review results

take corrective measures

(3) Enterprise control methods

DuPont analysis

The strategic control method based on financial indicators uses the relationship between several major financial ratios to comprehensively analyze the financial status of the company, and evaluates the company's performance and strategy implementation status from a financial perspective.

balanced scorecard approach

A new performance evaluation method that implements organizational strategies into actionable measurable indicators and target values

Profit Wheel Method (Harvard Simons)

profit roulette

ROE Roulette

The company's top performance goals

cash roulette