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Introduction to business

Objectives of strategic managementStrategy – description of the way in which an organisation addresses its fundamental challenges over a medium to long term.Henry Mintzberg concept of „five Ps” of business strategy.

Слайды и текст этой презентации

Слайд 1Introduction to business
Business strategy

Introduction to businessBusiness strategy

Слайд 2Objectives of strategic management
Strategy – description of the way in

which an organisation addresses its fundamental challenges over a medium

to long term.
Henry Mintzberg concept of „five Ps” of business strategy. A strategy can be:
A plan
A ploy
A pattern of behaviour
A position with respect to others
A perspective
Objectives of strategic managementStrategy – description of the way in which an organisation addresses its fundamental challenges

Слайд 3Strategic management
The management of the strategic long-term activities of the

business including:
Strategic analysis – focus on factors determining business performance

both internal (product development, human resources) as well as external (competitive environment, technology)
Strategic choice – formulation and evaluation of alternative courses of action that can be adopted
Strategic implementation: how to put choices into effect.
Strategic managementThe management of the strategic long-term activities of the business including:Strategic analysis – focus on factors

Слайд 4Strategic analysis
What the organization is about (mission)?
How it envisages where

it wants to be (vision)?
Both influenced by corporate governance –

structure of decision making (including relation with stakeholders), business ethics and cultural context.
More than just profitability!
Strategic analysisWhat the organization is about (mission)?How it envisages where it wants to be (vision)?Both influenced by

Слайд 5Business environment
M.Porter’s Five Forces Model of competition:
The bargaining power of

suppliers
The bargaining power of buyers
The threat of potential new entrants
The

threat of substitutes
The extent of competitive rivalry.
However, it is a static view of the business environment, while in reality it is constantly changing. Moreover, exclusion of co-operation possibilities. Also neglected human resources and company’s culture.
Business environmentM.Porter’s Five Forces Model of competition:The bargaining power of suppliersThe bargaining power of buyersThe threat of

Слайд 6Value chain analysis
Value chain (also M.Porter): The stages or activities

that help to create product value (how value is added

to a product as it moves through production process).
Two sets of activities: primary and support
Primary: inbound and outbound logistics, operations, marketing and sales, service.
Support: procurement, technological development, human resource management, firm infrastruture.

Value chain analysisValue chain (also M.Porter): The stages or activities that help to create product value (how

Слайд 7Strategic choice
Two broad categories of strategic choice theories:
Market-based
Resource-based (core

competencies – key skills of a business that underpin its

competitive advantage)
Three fundamental (again M.Porter!) market-based strategies:
Cost leadership
Differentiation
Focus

Strategic choiceTwo broad categories of strategic choice theories:Market-based Resource-based (core competencies – key skills of a business

Слайд 8Strategy in a global economy
Why go global?:
Market size
Increased profitability
Location economies

– internationalization of value chain enable to place each value

–created activity in the most appropriate place.
Cost reduction (scale economies, learning by doing)
Using core competencies
Spreading risk
Keeping up with rivals
Strategy in a global economyWhy go global?:	Market sizeIncreased profitabilityLocation economies – internationalization of value chain enable to

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