Strategy formulation and implementation- Balal
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This document outlines the course content for an advanced healthcare management course. It covers key topics like strategic management processes, formulating corporate, business, and functional level strategies, and strategy implementation and control. Grand strategies like growth, stability, and retrenchment are discussed. Formulating business strategy addresses Porter's five forces model and competitive strategies of differentiation, cost leadership, and focus. Effective strategy implementation requires building commitment, culture change, communication, and adjusting leadership, resources, and structure.
Strategy formulation and implementation- Balal
- 1. Jordan University of Science and Tech. Faculty of Medicine Department of Public Health Course: Advanced Health Care Management Submitted to: Dr. Sireen Al-Khaledi
- 4. 1. Thinking Strategically, 2. The Strategic Management Process, 3. Formulating Corporate-Level Strategy, 4. Formulating Business-Level Strategy, 5. Formulating Functional Level Strategy, 6. Strategy Implementation and Control OUT LINE
- 5. Thinking Strategically Strategic Management: The set of Decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. Grand Strategy: The general plan of major actions by which an organization intends to achieve its long-term goals.
- 6. Grand Strategy Categories: • Growth • Stability • Retrenchment Thinking Strategically
- 7. Grand Strategy Categories: • Growth • Stability • Retrenchment Internally: New Products, new customers Externally: Diversification>> The acquisition of businesses that are related to current product line or that take the corp. into new areas. Thinking Strategically
- 8. Grand Strategy Categories: • Growth • Stability • Retrenchment Thinking Strategically
- 9. Grand Strategy Categories: • Growth • Stability • Retrenchment Liquidation , Divestiture , Downsizing. Thinking Strategically
- 10. Thinking Strategically Global Strategy: A separate grand strategy includes decisions and actions about the corporate deal with the global operations. Important to Global Strategy: Need for National Responsiveness, Need for Global Integration.
- 11. Thinking Strategically NeedforGlobalIntegration Need for National Responsiveness
- 12. Thinking Strategically Export: Selling domestically produced products to selected countries.
- 13. Thinking Strategically Globalization: The standardization of product design and advertising strategies throughout the world. •Treats world as a single global market •Standardizes global products/advertising strategies
- 14. Thinking Strategically Multi-domestic Strategy: the modification of the product design and advertising strategies to suit the specific needs of individual countries. adapt product and promotion for each country.
- 15. Thinking Strategically Transnational Strategy: a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries. CATERPILLAR
- 16. Thinking Strategically Purpose of Strategy Strategy is: The plan of action that prescribes resource allocation and other activities for... - Dealing with environment, - Achieving a competitive advantage, and - Attaining organizational goals
- 17. Thinking Strategically Purpose of Strategy Competitive advantage means: What sets the organization apart from the others and provides it with a distinctive edge in the market place. 1. Core competence 2. Synergy 3. Value creation
- 18. Thinking Strategically Levels of Strategy What business we are in? How do we compete? How do we support the business-level strategy?
- 19. The Strategic Management Process Implement Strategy via Changes in: Leadership culture, Structure, HR, Information & control systems SWOT Formulate Strategy – Corporate, Business, Functional Define new Mission, Goals, Grand Strategy Identify Strategic Factors – Strengths, Weaknesses Identify Strategic Factors – Opportunities, Threats Scan Internal Environment – Core Competence, Synergy, Value Creation Evaluate Current Mission, Goals, Strategies Scan External Environment – National, Global
- 20. The Strategic Management Process Strategy Formulation: The stage of strategic management that involves the planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan. Strategy Implementation: The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes. StrategyformulationVersusimplementation
- 21. The Strategic Management Process Situation Analysis: Analysis of the strengths, weaknesses, opportunities and threats (SWOT) that affect the organizational performance. SituationAnalysis
- 22. The Strategic Management Process SituationAnalysis Management and Organization Management quality Staff quality Degree of centralization Organization charts Planning, information, control systems Finance Profit margin Debt-equity ratio Inventory ratio Return on investment Credit rating Marketing Distribution channels Market share Advertising efficiency Customer satisfaction Product quality Service reputation Sales force turnover Production Plant location Machinery obsolescence Purchasing system Quality control Productivity/efficiency Human Resources Employee experience, education Union status Turnover, absenteeism Work satisfaction Grievances Research and Development Basic applied research Laboratory capabilities Research programs New-product innovations Technology innovations
- 23. Formulating Corporate-Level str. Portfolio Strategy: The organization’s mix of SBUs and product lines that fit together in such a way as to provide the corporation with synergy and competitive advantage. PortfolioStrategyBCGMatrix SBU (strategic business units): A division of the organization that has a unique business mission, product line, competitors and markets relative to other SBUs in the same corporation.
- 25. System Alert !!! You do not have access to this area!!! For more information, contact Dr. Ekhlas Saad
- 26. Formulating Business-Level str. Business-Level Strategy Is the result of five competitive forces: 1. Potential new entrance, 2. Bargaining power of buyers, 3. Bargaining power of suppliers, 4. Threat of substitute products, 5. Rivalry among competitors. Porter’s
- 27. Formulating Business-Level str. Porter’s •Internet reduces barriers to entry •Internet expands market size, but creates new substitution threats •Internet tends to increase the bargaining power of suppliers •Internet shifts greater power to end consumers Internet blurs differences among competitors in an industry Bargaining Power of Buyers Bargaining Power of Suppliers Threat of Substitute Products Potential New Entrants Rivalry among Competitors
- 28. Formulating Business-Level str. Competitive strategies: To find its competitive edge within the mentioned forces, the organization may choose on direction of the following strategies: Differentiation, Cost leadership, Focus. 4Ps Porter’sCompetitivestrategies Product, Price, Place, Promotion
- 29. Formulating Business-Level str. Partnershipstrategy Organizational Combination Strategic Alliances Preferred Supplier Arrangements Strategic Business Partnering Mergers Acquisitions Joint Ventures A Strategic Plan
- 30. Formulating Functional Level str. KAUH Administrative (Services) department
- 31. Strategy Implementation and Control In this rapidly changing environment, it’s common sense to find a : Dynamic Approaches to implementing strategies that are based on : • Vision, • Intuition • Employees Participation
- 32. Strategy Implementation and Control Tips:> for Effective Strategy Implementation: ================================================ Build commitment to the strategy, Pay attention to culture, Take advantage of employees’ skills and knowledge, Commmmmunicate. Manager’sShoptalk
- 33. Strategy Implementation and Control ForPuttingStrategyintoAction Leadership • Use Persuasion. •Motivate Employees •Shape Culture/Values Information and Control Sys. •Revise Pay •Change Budget Allocation •Implement IS •Apply Rules/Procedures Human Resources •Recruitment •Manage transfers, promotions, and training •Direct layoffs/Recall Structural Design •Design Org. Chart •Create Teams •Determine centralized or decentralized •Arrange Facilities/ Task design Environment
- 34. Strategy Implementation and Control During turbulent times, .......... Many managers feel confident that they found the right formula, but they are less optimistic about the use and dosage.
- 35. Strategy Implementation and Control Three critical issues for implementing strategies during turbulent times... • Global Mindset, • Corporate Culture, and • Information technology. ForPuttingStrategyintoAction
- 36. Jordan University of Science and Tech. Faculty of Medicine Department of Public Health Course: Advanced Health Care Management Picture Not Available Belal Abul-Asal KAUH Dr. Ekhlas Saad MOH