7. Steps in the Change Process A Comprehensive Approach to Change Establishment of goals for the change Recognition of the need for change Evaluation and follow-up Diagnosis of relevant variables Planning for implementation of the change Selection of appropriate change technique Actual implementation
28. Formulation and Implementation Across Strategic Alternatives Corporate Strategy Formulation Decisions about which markets to compete in Business Strategy Formulation Decisions about how to compete in each market Functional Strategy Formulation Decisions about how to address each function within the organization Implementation Carrying out the functional-level strategies chosen for each business function Implementation Carrying out the business-level strategies chosen for each business Implementation Competing in the markets via existing operations, mergers, acquisitions, new ventures, divestitures
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32. Using a SWOT Analysis to Formulate Strategy … An Example Opportunities High growth in market for low-cost lodging Strengths Solid hotel business Solid food services Weaknesses Poor performance in cruise ship, travel agency, and theme parks Weak cash position Threats Low growth in the market for high-cost lodging Environmental Analysis Organizational Analysis
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48. The BCG Matrix Source: Perspectives, No. 66, “The Product Portfolio,” Adapted by permission from The Boston Consulting Group, Inc., 1970. Relative market share Cash cows Dogs High Low High Low Question marks Stars Market growth rate
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52. The GE Business Screen In general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business. Competitive position Low Winner Medium High Good Competitive position 1. Market share 2. Technological know-how 3. Product quality 4. Service network 5. Price competitiveness 6. Operating costs Industry attractiveness 1. Market growth 2. Market size 3. Capital requirements 4. Competitive intensity Poor Medium Winner Profit producer Winner Average business Loser Question mark Loser Loser Industry growth rate
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57. The Contingency Planning Process - An Ongoing Process Action Point 1: Action Point 2: Action Point 3: Action Point 4: Develop plans, considering contingency events Implement plans and formally identify contingency events Specify contingency event indicators and develop plans for each event Successfully complete each plan or contingency plan