企业战略管理的理论和方法Theories and Methodologies in Strategic ManagementChapter 1 Introduction of Strategic ManagementOutline of this chapter1. Definition of strategic management (SM).2. Some key trems uesed in SM3. Model of SM.4. Aims of SM.5. Functions and benefits of SM6. Reasons for not doing SM.7. Guildlines or principles for an effective SM.8. Methodologies of SM9. Abilities learned and practiced in SM.1.1 definition of SM( or SMP).Strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above average returns.And more specifically, SM can be defined as an art and science of formulating, implementing and evaluating overall decisions that enable an business organization (BO) to achieve its long term objectives.1.2 some key terms often used in SMA. strategists: CEO, president（总裁）, chair of the board（董事长）, executive director（执行董事）, or entrepreneur（企业家）, who are responsible for making strategic decision and who will also take most responsibility for failure and success of a BO.B. mission（使命）and vision（愿景）.a. Mission : which identify the business scope for a BO.b. Vision : which set the ultimate objectives and prospects for a BO.C. long term objective: refers to specific results, which a BO *strives to achieve within a period longer than one year.D. annual objective (*manage)E. Strategy: refers to the means which is used by a BO to achieve its long term objectives. e.gfocus（专业化）, acquisition（收购）, diversification（多元化）, retrenchment（收缩）.F. policy: refers to the means which is used by a BO to guide its day to day operation, e.g compensation policy, motivation policy, business rules, cost control regulation, customer service policy, ect. The policy often reflect the business ethics and values of a BO and its top management. 1.3 model of SMSteps 1: strategic analysis,which can be further divided into following steps:external analysis,internal analysis.Step 2: strategy formulation, which can be further divided into following steps:strategic position i.e developing vision and mission for a business organization,and strategy selection, which mainly focus on selecting proper strategies to achieve the long term objective of a BO.Steps 3:strategy implementation,which can be further divided into following steps :establishing objectives,managing to achieve objectives.Steps 4: strategy evaluation, which can be further divided intio following steps:evaluating strategy,adjusting strategy.1.4 aim of SMWhen we conduct SM, all of SM activities should be aimed at long term benefits rather than short term interests, and theories and methods used in SM are also developed and practiced on the basis of long term objectives .Therefore, in the long run, the aim of SM as well as the whole BO is to provide customer satisfaction and constantly compete to be the best among many other competitors. So the fundamental business ethics is the altruim.1.5 functions and benefits of SMThe major function or benefit of SM is to provide a clear direction and paths for the future development of a BO.1.6 why some BOs do not conduct SM.a. firefighting managementb. waste of timec. too expensived. fear of failuree. overconfident1.7 GUIDELINE OF SMA. Forward thinking.B. Fullsight thinking.C. Trend thinking.D. Rational thinking.E. Path thinking.1.8 methodology used in SMA. the first methodology is binary analysis or dialectics, which analyse two sides of the issue and try to make comprehensive conclusion of the targeted issue. Some typical binary analysis include external and internal analysis, SW, OT, gain or loss, ect.B. The second one is gain or loss, or benefit or harm analysis, which list and evaluate the majorbenefits and losses of certain actions and thereby make a final decision.C. The third one is objective orientation.Which means in SM, we always put objective as the top priority, and make strategic decisions in accordance with the objective. So before we take any action, it is important to make clear what is your purpose and what is your final goal of taking this action.D. The fourth one is the result or effect orientation, which means we evaluate the effectiveness of a certain strategy according to its final results or its actual effects it has produced.E. The fifth one is systematic plan or comprehensive management, which means in SM, we should see a BO as a whole system, each department or division has its independent functions and duties, and each department is also an indispensible part of the wholeorganization, and they are all committed to the same mission of the whole organization, and this kind of relationship between different department is called strategic partner. The other meanning of systematic plan is that each separate steps of business management are related to each other, and we should make thefirst step conducive and productive to the second step.1.9 ABILITIES NEEDED TO CONDUCTING EFFECTIVE SMConducting effective SM, a strategist will need to have several essential abilities, which include: A. Ability of foresightful and insightful analysis, which is needed to conduct an effctive strategic analysis.B. Ability of making a decisive judgement, which is needed when making strategic selection.C. Ability of comprehesive planning, which is needed when formulating a strategic plan.D. Ability of thougthful practicing, which is needed when implementing the strategy.E. Ability of flexibility and adaptiveness, which is needed when facing a constantly changing enviornment in which a business organization may frequently encounter.Chapter 2 external analysis in strategic analysisObjectives:A.describe a framework of external analysis.B. identify key factors in EAC. outline a general process of analysing each of the key factor .D. make a preliminary conclusion of EA2.1 Introduction of EA2.1.1 a general definition of strategic analysisIn SM, SA refers to a systematic and comprehensive analysis on the external and internal factors, which will affect business operation of a BO. So SA include two parts of analysis, one is EA, and the other is IA.2.1.2 the aim or function of SABefore making strategic decisions for a BO, srategist should carefully analyzing some essential factors that will affect the effectiveness of these decisions. As an old Chinese saying said: without knowing your enemy and yourself, you can never win a war.The first strategic decision needed to be made for a BO is the mission and vision, which identify the main business scope and long term goals for a BO. Before making this decisions, strategists should know the long term profitibility of the selected business.Basically, the long term profitibility of an business are mainly determined by two factors. One is the average profitibility of the whole industry, and the other one is the earning capacity of the individual BO. Therefore SA mainly focus on analyzing these two factors, among them, EA focus on industry analysis, and IA focus on enterprise analysis.2.1.3 methods used in EABesides some basic principles in SM, we will also study some methodologies used in SM. In EA, there are some basic methods, which we will illustrate in detail in our later discussion. Here we will make a brief introduction about some of these methods.The first method is the method of key factors. This method is used in selecting factors, which willaffect the long term profitibility of a certain industry. Since there are so many factors which can affect the profitibility of an industry, that we can put all of these factors into our consideration. What we can do is to select some key factors that have significant affact on the profitibility of an industry. In Chinese philosophy, this method is called catching the major contradictions and major aspects of the major contradiction.The other method is trend analysis. As we said before in chapter 1, prediction about future events can not be made so precisely as some economic reports. But we still can make a basic prediction that could tell us the general trend of future events.2.1.4 the model of EAThe model here refer to the framework used in the EA, which are different in different SM theory.2.1.5 Five force modelA. force from competitorsB. force from new entrantsC. force from substitute productsD. froce from buyersE. force from supplyers2.1.6 outline of industry analysisA. total demandB. total supplyC. competition situationD. supply chain situationE. other related factors2.2 analysis on general demand2.2.1 the theory of market mechanism:total supply and total demand decide market price, and market price affect total supply and total demand, and thus affect allocation of resources in the market.2.2.2 the aim of analysis on general demandFrom the basic theory of market mechanism, we can know that total demand is one of the two factors, which decide market price. In a market economy, all business activities are aimed to satisfy a certain kind of demand,and to some extent, the profitibility of a industry are largely determind by the total demand in this industry. By analysing the current total demand and the general trend in a relatively longer period, we can get a basic conclusion on the profitibility of an industry.2.2.3 some major indicators used to analysize general demandA. current total demand for a product = per captia consumption of a product * quantity of total populationB. Future demand for a product = per captia demand for a product in future * total population in futureC. the annual growth rate of total demand = (future demand – current) / growing years2.2.4 basic conclusion on total demand: four stages in product’s life cycleA. introduction stageB. growth stageC. maturity stageD. decline stageA. Main characteristics of introduction stage:-----high growth rate-----high profit margin********starsB. Main characteristics of growing stage------high growth rate------medium or low profit margin********cash cowsC. Main characteristics of stable stage:-----medium or low growth rate-----medium or low profit margin********dogsD. Main characteristics of decling stage:------negative growth rate------low profit margin********questions2.3 Analysis on general supply2.3.1 aims of general supply ananlysisfrom theory of market mechanism we have known that, in addition to general demand, general supply is another determinant factor which will affect market price.Actually, it is the relationship between total demand and total supply that finally determine the market price. Just because in most cases, general demand usually is the initial factor that will change the equillibrium price, we put it in the first place in our discussion. In this section,will turn our focus on total supply analysis, and discuss how it will affact market price and thus profitibility in a certain industry.2.3.2 indicators used in general supply analysisA. overall capacity of general supply relative to general demand: reflect current capacity(1) undercapacity(2) duecapacity(3) overcapacityB. Barrier of entering an industry: reflect possible capacity increase in the future(1) Investment barrier(2) techonology barrier(3) policy barrierC. Barrier of leaving an industry: reflect possible capacity decrease in the future(1) special equipment(2) large volume of investmemt2.3.3 basic conclusion on total supplyA. undersupply: relatively high prifit marginB. saturate: medium profit marginC. oversupply: low profit margin2.4 analysis on competing situation2.4.1 the aim of competing situation analysisIn a market economy, theoratically, there are four different kinds of competition situation, which include pure competion, monopolistic competion, oligopoly, and monopoly.Generally, in each of these different competition situation, the profit margin of a BO is different, so the competition situation is an important external factor which has significant influence on the profitibility of a industry as a whole. The aim of competition analysis is to analyze the current competition situation in a certain industry, and thus make a preliminary assessment on the profitibility of a industry.2.4.2 the major indicators used in competitive situation analysisA. the number of competitors in an industry.B. the market share of the leading competitors in this industry.2.4.3 basic conclusion on competiting analysisA. pure competition: many competitors compete in a homogeneous product market, and no single competitor gain a notable market share.Conclusion: low profit marginB. monopolistic competition: many competitors compete in a heterogeneous product market with differentiated product features, and no single competitor gain a dominant market share. Conclusion: relatively high profit margin.C. oligopoly: relatively fewer competitors compete in an identical product market or a differentiated product market, and each competitor has a remarkable market share.Conclusion: high profit marginD. monopoly: only a single player in the market, or a single competitor has a dominant market share, say 80% or 90% of the total market share.Conclusion: controllable high profit margin.2.5 analysis on supply chain2.5.1 the aim of supply chain analysisBesides the controllability in an industry that can greatly affect the profit margin of a BO, the supply chain before and after this BO will also play a role in the profit margin of this BO. These supply chain include suppliers which provide rawmaterials to the BO, and distributors which provide distribution channels to the BO. If the suppliers and the distributors can provide their products or services at cheaper price to the BO, it can get a higher profit margin, otherwise it will have a lower profit margin.2.5.2 indicators used in supply chain analysisA. monopolistic degree of supplier or distributor2.5.3 basic conclusion of supply chain analysisA. high monopolistic degree: low profit marginB. low monopolistic degree: medium or high profit margin2.6 analysis on macroeconomy2.6.1 aims of macroeconomy analysisBesides those factors with the industry that will greatly affect the profitability of an industry, the factors outside the industry will also affect the profitability of the industry . Except those countercycle industry, in an expansion period,an industry generally get a high profit margin, and in a shrinking period, an industry generally has a low profit margin.2.6.2 indicators used in macroeconomy analysisA. economic growth rateB. inflation rate2.6.3 basic conclusion on macroeconomy analysisA. high growth rate: high or medium profit marginB. low or nagetive growth rate:low profit marginChapter 3 internal analysis3.1 introdution of internal analysis3.1.1 aims of internal analysisAlthough the general profitability in an industry has an influence on the profitability of a BO, we still can see a big difference on the profitability of different BOs in the same industry. As a matter of fact, it is the factors within a BO that finally determind the profitability.3.1.2 key factors used in IAthose factors which are vitally important to the competitiveness of a BO, which include:A. resource factorsB. capability factorsC. organizational factors3.1.3 methods applied in IA--------scarcity rating methodhigh scarcity: highly competitive,and high profitabilitylow scarcity: lowly competitive,and low profitability3.2 analysis on resourse factors3.2.1 aims of resource analysis.The resources refer to the physical and nonphysical assets a BO possess or has actual controls. How much and how rare resources a BO own will greatly affect the earning capacity of a BO.3.2.2 key factors applied in resources analysisA. physical resourceB. human resourceC. nonphysical resource3.2.3 scarcity on resource factors and preliminary conclusion of IA on resources factors:A. has no scarcity: low competitivenessB. has immitable scarcity: short term competitivenessC.has unimmitable or sustainable scarcity: long term competitiveness3.3 analysis on capabilities factors3.3.1 the aims of capabilities analysisThe capabilities refer to any kinds of skill or capacity which a BO possess to make fully use of its various resources. Resources are only potential wealth, if they are not properly used.The capability to properly use the resources will greatly affact the value, which a certain kind of resource contribute to the profit of a BO. So the capabilities is another improtant fatctor which will greatly affect the profitability of a BO, and thus is needed carefully analysing.3.3.2 Key factors in capability analysis.Different industry and different market may repuire quite different capabilities to achive and maintian a highly profitable performance. In CA, analysts should first identify those key capabilities which are crucial to the success in market comptetition.In a typical manufaturing industry, thses capabilities may include:A. R&D capabilityB. manufacturing capabilityC. marketing capabilityD. supplying capabilityE. distributing capabilityF. logistic capability3.3.3 the preliminary conclusion of CAA. has no a certain capability: disadvantagous competitiveness;B. has a certain capability,but with no scarcity: average competitiveness.C. has a certain capability with immitable scarcity: short term advantageous competitiveness.D. Has a certain capability, with unimmitable scarcity: relatively long term competitive advantages.3.4 the analysis of organizational factors3.4.1 the aims of organizational analysisthe organizational factors refer to the process and system by which a BO allocate and utilize its resources and capabilities. If a BO possess sufficient resources and excellent capabilities, but its does not have a efficient supporting system touse these resources and capabilites effectively, then the overall performance will not be very good and thus the profit will not be very high. Actually, it is the organizational factors which will finally determind the efficiency of the use of resources and capabilities, and thus the earning capacity of a BO. The aim of OA is to assess the strength and weakness a BO has in its supporting system.3.4.2 Key factors in organizational analysisDifferent enterprise may have different structure and system to make its decision on how to allocate and utilize its resources. But there are some common elements which most BOs have in their running system, which includeA. organizational structure and decision making systemB. managing and controlling systemC.operation systemD. information systempensation systemF. organizational culture and morale3.4.3 the preliminary conclusion of OAA. excellent in an organizational factors: high competitiveness;B. good: medium high competitiveness;C. ordinary level: medium competitiveness;D. unsatisfactory: low competitiveness3.5 general conclusion of IA and core competency3.5.1 general conculsion of IA(1) give a proper weight to each factor according to its importance to the performance and profitability of the BO.From 1a to 100a, and plus all a together which is equal to 100, and then get the specifie weight for each factor.(2) Multiply rate number of each factor by it weight, and then get a general results on internal factors of a BO, from 4 to 1.(3) Get a general conclusion on IAA. 4: high competitiveness, and leader in the industry ;B. 3 and above: high, and powerful follower in the industry;C. 2 and above: average, sustainable competitor;D. below 2: low, general participant.3.5.2 core competency and competitivenenssThe result derived above analysis is only a calculated figure, and can only be ued as a reference when making strategic decision. But it still can provide some useful information for making a rational strategic decision.First is the earning capacity of a BO largely depend on its competitiveness compared to other competitors. And secondly, the whole competitiveness largely depend those core competency. The core competency refer to those competitive factors which make crucial contribution to the performance and profits of a BO.As a matter of facts, every BO has competence in terms of its earning capacity in the market competition, but only those competence which make the most contributions to its earning capacity belong to core competency, and those core competency which has unimmtable scarcity will bring long term above average profits to a BO. This tell us something about how to build core competency for a BO.Chapter 4 Strategic positioning4.1 introduction of SP4.1.1 the meaning of strategic positioningSP means setting a position and direction for a BO, so it includes two parts, one is setting a position, which means choose a industry for a BO, and the other one is setting a direction,which means setting a long term goal for the development of a BO.4.1.2 the aim of SPthe aim of SP is to provide clear and contrete answers to the fundmental questions which every BO need to answer before it actually start it business, which include “what is our business”, that is the industry, and “what do we want to become after doing that business”, that is goal.Without SP, a BO may be like a aimless ship which losts controll over its activites, and will not grow better and stronger in the long run.4.1.3 the contents of SPA. Mission statement: choose industry and businessB. vision desctription: set a long term goal.4.1.4 the method of SP: SWOT analysis.A. SW analysis: from IAB. OT analysis: from EA4.1.4 possible combination of SWOT introduced in some typical SM textbook, and it sometimes looks confusing and even ridiculousA. combiantion of S and OB. S and TC. W and OD. W and T4.1.5 general principle of SPA. make the best use of opportunity,and choose industry which has most favorable industry development conditions and thus make above average profits (according to Poter’s five forces analysis thoery)B. take proper measures to aviod or reduce threats.C. make the best use of resources and capabilities a BO has in itself, and choose the industry in which a BO has the best competitive advantage compared with other BO, and thus make above average profits (according to resource based thoery and comparative advantage thoery).D. take proper measures to improve weakness inside the BO and gradually make full development in all aspects of its key competition elements.(IBM, GE, Toyota, P&G, Microsoft)4.1.6 proper method of SPA. make an internal analysis and clarify the major competitive advantage possessed by the BO and make the best use of it.B. make an external analysis to choose the proper industry which has favorable growth trend.eg: GE choose the industry which its has leading market position.4.2 Vision statement4.2.1 key points of VSLiterally, vision means visual conception of a desired or dreamed goals, it depicts a bright pictures of one’s dreams and elucidate it in eloqent words. In a BO, vision answers question of “what is our dream in the business world?”and “what do we want to become as a business organization?”, it set adirection for the long term development of a BO.Some key points of an effectivevision statememt include:# Clarity and lack of ambiguity# Vivid and clear picture# Description of a bright future# Memorable and engaging wording# Realistic aspirations# Alignment with organizational values and culture4.2.2 examples of VSThere are some organization which elucidate its vision very succinct and clear, and there also some orgnization which portray its vision in very elusive and obscure words. We can see some example of both types of VS. For example, a charity organization working to help the poor may have a VS as“ a world without poverty”. A commercial bank may have a VS as “to protect the public interes t, ensure competion and fairness within the revelent financial service industries, respond innovatively toa rapidly changing word enviornment, and foster a posotive impact on the regional economy”.4.3 Mission Statement4.3.1 key points of MSAfter portray the visual concept or its long term dreams, a BO should give answers to the question of “how to realize these dreams and “what is our businss”. MS outline its main businessscope and some fundmental critiria of doing business.Some key points of an effective MS include#. Customers#. Products or services#. Techonologies#. Concerns for survival, growth, and profitability#. Philosophy#. Self-concept#. Concern for public image#. Concern for employees4.3.2 examples of MS（67）Chapter 5 Selecting strategy and Types of Strategies5.1 intruduction of selecting strategy5.1.1 aims of selecting strategyAfter identifying and clarifying the strategic or long term goal for the BO, the next question is how to reach this goal. The aim of selecting strategy is to provide a optimum or proper path, i.e strategy, to reach this goal successfully and efficiently.5.1.2 the steps of selecting strategyAt least, there are two steps included in the process of selecting strategy. The first one is listing all the possible and viable strategies, and the second one is selecting proper or best suitable choice. 5.2 the general classfication of different types of strategies5.2.1 classification of enterprise strategyA. operation strategy: focusing on internal operation and management, such as brand strategy, marketing strategy, R&D strategy, ect.B. competion strategy: focusing on external competition and development.5.2.2 general tpyes of competion strategyA. generic strategyB. intergration strategyC. intensive strategyD. dersification strategyE. defensive strategyF. flex strategyChapter 6 Generic strategy(operational strategy)6.1 introduction of generic strategy6.1.1 the meaning of GSGSs refer to those strategies which are used in the operational level in a specific selected business area to compete with other BO, so they are also called operational strategies .6.1.2 classfication of competitive strategiesA. corporation level: corporation strategiesB. business unit level: operational strategiesC. department level: functional strategies6.1.3 sub-types of GSsA.cost leading strategyB. differentiation strategyC. focus strategy6.2 focus strategy6.2.1 the meaning of FSFS refers to a strategy by which a BO focus its efforts and resources on relatively few specialized areas where it has comparative advantage.A. make the best use of current advantageous abilities and resources in a BO.B. concentrate limited resources on special area where the BO has comparative advantage.C. focus on the core business to be a leading competitor in a certain industry.6.2.3 circumstance of conducting FSFS would be an effective stategy under such circumstance as following:A. the focused area has a sufficient size, and has a good potential growth.B. Customers in this area have consistant and enduring preferences or requirements on the products.C. the BO pursuing FS should have abilities to provide special satisfaction for the customers6.2.4 risks of FSthe risks of conducting FS include:A. the possibility that numerous competitors recognize the successful area and copy the strategy.B.the customer preference drift to a completely new area.C. an unforeseen technology breakthrough or other unexpected events make the focued area obsolete.6.2.5 specific method of FSsome commonly used method may include:A. focusing on productB. focusing on customer market segmentC. focusing on geographic areasD. focusing on core competency6.3 differentiation strategy6.3.1 the meaning of DSDS refers to strategies by which a BO diffrentiate its products from other competitors in such aspects as function, appearance, brand, package, location, working hours, or whatever that make its products different from others in certain features.Basically, those products are similar in nature, which are provided to satisfy the same kind of customer needs. The difference is that different BOs can offer different product features which can provide special satisfaction for its customer, and thereby build customer loyalty, and make extra profits.6.3.2 the purpose of DSthe main purpose of DS is to differentiate your products from other competitors, and thus aviod homogeneous competion which will inevitablely reduce profit margin.6.3.3 the circumtance of adopting DSA. when there are some niche market where other competitors are not particularly focused on for whatever reasons.B. when customer needs have some special preference on the basically same products.C. Those products with special features will be valued higher than the standard products.D. the BO which adopts DS should have abilities to attract and retain talented people and develop new products.6.3.4 the risks of DSA. A risk of DS is that customers do not give high evaluation on the differentiated product. In this case, it will be easily defeated by the generic or so called standard products, or by cost leading strategy.B. Another risk of DS is that other competitors will easily imitate the special features, and thus quickly make the differientiated priduct generic.6.3.5 The specific methods of DSA. differentiate in location.B. on appearanceC. on functionD. on special tasteE. on special usage6.4 cost leading strategy(CLS)。