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The Strategic Management Process

Strategic Planning Process

* Mission and objectives (what is this company going to consist of?)

* Environment scanning (what’s going on in the environment?

* Strategy formulation (what am I going to do?)

* Strategy implementation ( now I’m going to do it; put forth the effort and make it happen)

* Evaluation and control (how did it work?)

1. Business Model- most important parts of the business strategy

What is it?

* Value Proposition- a description of the customer problem, the product that addresses the problem, and the value of the product from the customer’s perspectives.

EXAMPLE: BMW (fast and attractive) ; Foot Locker (convenience)

* Market segment- the group of customers to target, recognizing that different market segments have different needs. Sometimes the potential of an innovation is unlocked only when a different market segment is targeted.

EXAMPLE: Target (higher income, education, smaller families, older population)

* Value chain structure- the firm’s position and activities in the value chain and grow the firm will capture part of the value that it creates in the chain.

* Inbound logistics- include the receiving, warehousing, and inventory control of input materials

* Operations- are the value creating activities that transform the inputs into the final product

* Outbound logistics- are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.

* Marketing and sales- are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc.

* Service- activities are those that maintain and enhance the product’s value including customer support, repair services, etc.

* Revenue generation and margins- how revenue is generated (sales, leasing, subscription, support, etc.), the cost structure, and target profit margins

EXAMPLE:...