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MODERN STRATEGIC ANALYSIS Theme 2. Process of strategic management, internal

Process of strategic management Mission Strategic goalsSWOT-analysisAlternative strategiesStrategy choiceStrategy implementationAVK SPbPU

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Слайд 1MODERN STRATEGIC ANALYSIS Theme 2. Process of strategic management, internal

analysis , strategy choice

Dr. Prof. Aleksandr Kozlov
18/10/2016

MODERN STRATEGIC ANALYSIS Theme 2. Process of strategic management, internal analysis , strategy choiceDr. Prof. Aleksandr Kozlov18/10/2016

Слайд 2Process of strategic management
Mission
Strategic goals
SWOT-analysis
Alternative strategies
Strategy

choice
Strategy implementation
AVK SPbPU

Process of strategic management Mission   Strategic goalsSWOT-analysisAlternative strategiesStrategy choiceStrategy implementationAVK  SPbPU

Слайд 3Internal analysis
Production
Finance
Purchasing
Marketing
Sales
HRM
Management
Innovations
AVK SPbPU

Internal analysisProductionFinancePurchasingMarketingSales HRMManagementInnovationsAVK  SPbPU

Слайд 4Internal analysis criteria

Comparison with the past
Comparison with competitors
External evaluation (experts)
Official

recognition
Public recognition

AVK SPbPU

Internal analysis criteriaComparison with the pastComparison with competitorsExternal evaluation (experts)Official recognitionPublic recognition AVK  SPbPU

Слайд 5Strengths
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience,

knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution, awareness?

Cultural, attitudinal,

behavioural?
Location and geographical?
Price, value, quality?
Accreditations, qualifications, certifications?
Processes, systems, IT, communications?
Innovative aspects?

AVK SPbPU

StrengthsAdvantages of proposition?Capabilities? Competitive advantages?USP's (unique selling points)?Resources, Assets, People?Experience, knowledge, data?Financial reserves, likely returns?Marketing - reach,

Слайд 6Weaknesses
Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and

reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Effects on core

activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Continuity, supply chain robustness?


AVK SPbPU

WeaknessesDisadvantages of proposition?Gaps in capabilities?Lack of competitive strength?Reputation, presence and reach?Financials?Own known vulnerabilities?Timescales, deadlines and pressures?Cashflow, start-up

Слайд 7Profile of competitive advantages
+ 1
- 1
Rather positive
Rather negative
Main competitor
AVK

SPbPU

Profile of competitive advantages+ 1- 1Rather positiveRather negativeMain competitorAVK  SPbPU

Слайд 8Modern tools of strategic analysis. Value chain
Value chain analysis


a process where a firm identifies its priorities and support

activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.
Value chain represents the internal activities a firm engages in when transforming inputs into outputs.”

AVK SPbPU

Modern tools of strategic analysis. Value chain Value chain analysis a process where a firm identifies its

Слайд 9Modern tools of strategic analysis. Value chain
AVK SPbPU

Modern tools of strategic analysis. Value chain AVK  SPbPU

Слайд 10Business Strategy Choice
Choice about business positioning relative to competitors, creating

strategic capabilities and competitive advantage
AVK SPbPU

Business Strategy ChoiceChoice about business positioning relative to competitors, creating strategic capabilities and competitive advantage AVK

Слайд 11Competitive advantage principles -VRIN
Value,
Rarity,
Inimitability and
Non-substitutability
From: Jay

Barney: ‘Firm resources and sustained competitive advantage’, Journal of Management,

vol. 17 (1991), no. 1, pp. 99–120.

AVK SPbPU

Competitive advantage principles -VRINValue, Rarity, Inimitability and Non-substitutability From: Jay Barney: ‘Firm resources and sustained competitive advantage’,

Слайд 12 VRIN: Value
Strategic capabilities are of

value when they:
take advantage of opportunities and neutralise threats,


provide value to customers
provide potential competitive advantage at a cost that allows an organisation to realise acceptable levels of return

AVK SPbPU

VRIN: ValueStrategic capabilities are of value when they: take advantage of opportunities

Слайд 13 VRIN: Rarity
Rare capabilities are those

possessed uniquely by one organisation or by a few others

only. (E.g. a company may have patented products, have supremely talented people or a powerful brand.)
Rarity could be temporary. (Eg: Patents expire, key individuals can leave or brands can be de-valued by adverse publicity.)

AVK SPbPU

VRIN: RarityRare capabilities are those possessed uniquely by one organisation or by

Слайд 14 VRIN: Inimitability
Inimitable capabilities are

those that competitors find difficult to imitate or obtain.
Competitive

advantage can be built on unique resources (a key individual or IT system) but these may not be sustainable (key people leave or others acquire the same systems).
Sustainable advantage is more often found in competences (the way resources are managed, developed and deployed) and the way competences are linked together and integrated

AVK SPbPU

VRIN: Inimitability Inimitable capabilities are those that competitors find difficult to imitate

Слайд 15 VRIN: Non-substitutability
Competitive advantage may

not be sustainable if there is a threat of substitution.


Product or service substitution from a different industry/market. For example, postal services partly substituted by e-mail.
Competence substitution. For example, a skill substituted by expert systems or IT solutions

AVK SPbPU

VRIN: Non-substitutability Competitive advantage may not be sustainable if there is a

Слайд 16Alternative strategies
Growth
Diversification
Conglomerated
Concentric
Focus
Integration
Vertical
Horizontal
Withdrawal

AVK SPbPU

Alternative strategiesGrowthDiversificationConglomeratedConcentric FocusIntegrationVerticalHorizontalWithdrawal AVK  SPbPU

Слайд 17Strategy selection matrix
Internal analysis

External analysis
Growth
Diversification
Integration
Withdrawal
Focus
Integration
AVK SPbPU


Strategy selection matrix Internal analysis          External analysis GrowthDiversificationIntegrationWithdrawalFocusIntegration

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