Strategic management – Summary Class

I started in May 2015 MBA in Business Management at the Getulio Vargas Foundation (FGV) and the first class was on Strategic management. Perhaps this discipline should not be the first, as the Strategic Management takes as its premise that a business already exists and, in theory, not yet learned how to start a business, but due to scheduling issues of excellent teacher Candida Maria Torres, this discipline eventually advance.

Despite this advance in the MBA curriculum, I do not think that has anything muddled understanding of this strategic tool.

As directed by Terres, I created a summary of all raw data in the classroom to help me study for the test. I thought the summary was so cool that I decided to share here on the blog also. I hope you enjoy summary.

1. Business definition

– What is it?
CA + CB (Customer Target + Core Business).
That's what the company does to reach your target customer.
The CB can be restricted or broad. Petrobras, eg, restricted CB is the oil and CB Broad is Energy.
The CA must realize the value offered by the company CB.

– Importance:
Defines the role of branches, company's products or services (positioning) to reach your target customer.

– Example (LAN-UOL):
“Distribute fuel to the insured posts and provide service to the customer.”

The CB LAN-UOL's distribution of fuel to the stations and service delivery to the end customer through the store, car wash and tire repairman.

The CA are insured stations and convenience store customers, car wash and tire repair.

*LAN-UOL is a fuel distribution company that was presented as a case study for the years in the classroom. All the work was based on that case study, although it is not here in the post, not hinder the understanding of the key concepts of Strategic Management.

2. View

– What is it?
It is the desire or future dream in which the company wants to achieve.
May have a period of 3, 5 or 10 years, but it must be measurable, in other words, be clear when reached.
You have to be defined by the leader, it defines the direction the company should follow.
A review in Vision cancels the previous versions.

– Importance:
Directs the company's efforts for a common future goal, with a goal and clearly defined term.
Provides alignment within the company, aligning the efforts of its employees to achieve this common future.

– Example (LAN-UOL):
“Become one of the three largest distributors of fuel and service station network in Brazil by 2020.”
The deadline is clear (2020) and the goal is to be one of the three largest distributors in Brazil.

3. Mission

– What is it?
It is the raison d'être of the company and also the “como” to arrive at Vision.

It has the vocation to eternity. May remain unchanged even when the Vision be upgraded. However changes when the business changes.

Can you give more emphasis to stakeholders (shareholders, Providers, customers, employees and society), business and / or product.

Answer the five basic questions:

• What is the organization's business?
• Who is your customer?
• What is the organization's scope?
• What is your competitive advantage?
• What is your social contribution?

– Importance:
Clarifies how processes and people work the company's business to meet stakeholders.

– Example (LAN-UOL):
“Meet the needs of our customers, acting responsibly in the economic, ambiental e social, with a quality product and excellent service.”

The fuel distribution and the provision of services in the stations meet customer needs, sustainably and quality.

4. Values

– What is it?
Are the beliefs in which the company believes and remains faithful in their decision-making.
The trend is that the values ​​do not change.
A company has to 3 a 7 values.
Must be very clear. Preferably defined with a dictionary-side.

– Importance:
They guide the stance that the company will have in their decisions.
A company whose value the preservation of life never venture to an employee for more profit (in the ideal world is like). ;)

– Example:
“Customer focus; Modernization; and Quality.”

5. Scenarios analysis

– What is it?
It is the study of external aspects of the company to create future scenes in the five basic scenarios: Political, Economic, Technological, Product and Relationship Working Capital Market.

The scenarios analyze the trend, Opportunity and Threat of each of these five basic scenarios.

Trend – Macro generic impact factor for the company. Impacts all;
Opportunity – Specific factors of positive impact to the company;
Threat – Specific factors of negative impact to the company;

These scenarios indicate opportunities and threats to be addressed by the Strategic Planning.

– Importance:
It is a future forecasting exercise that determines actions to enhance business growth and also creating strategies to protect the company from threats.

– Example:

6. Sector Analysis (PORTER)

– What is it?
It is a sector analysis tool in which the company operates or intends to operate.

Analyzes called five forces of Porter, to identify their strengths and weaknesses and provide indications for new strategic actions.

As 5 Porter forces:

• New Competitors (New Starters);
• Customers;
• Current competitors;
• Substitute Products; and
• Providers;

This tool analyzes the strengths and weaknesses that each of these five categories have, in other words, It is an industry analysis and not the company itself.

There are two forms of analysis by Porter: 1- If you are already working in the sector; and 2- If you want to start working in the sector;
To highlight in a new sector the company has to offer differential.

– Importance:
Identifies the strengths and weaknesses of each of the five forces of Porter and provides another opportunity to identify actions to enhance the opportunities or protect themselves from threats.

– Example:

7. Matriz SWOT

– What is it?
It is an analysis tool that compares internal aspects of the company to market aspects (external factors).
Serves to identify the company's Strengths and Weaknesses (internal aspects) and Opportunities and Threats in the market for your business.

The relationship of these four aspects we can generate offensive actions, Defensive, and to minimize the weakness and vulnerability.

Below the SWOT matrix

Offensive actions They are set to make the most of the differential of the company, in other words, what she does best (Force), and seize the opportunities that the market offers;

Defensive actions They are set to protect the company from market threats using their Force.

Undo Weakness are actions that seek to minimize as much as possible and Weaknesses, simultaneously, leverage external opportunities.

Cancel Vulnerability are actions that seek to minimize the most of the front of the raised Weaknesses Threats.

– Importance:
The SWOT matrix is ​​important because it helps raising and organization of Strengths and Weaknesses of the company and also the opportunities and market threats.

Furthermore, the main importance of this tool is to relate internal and external aspects of the company, allowing the creation of actions that potencializarão and protect the company's business.

– Example:

8. Strategic Map

– What is it?
It is the graphical representation of the way until you arrive at VISION.

It contains the main Strategic Objectives (not necessarily all identified, only the most important), classifying them into four strategic perspectives of the BSC (Financial, Customers, Internal Processes and People Management), impact representing the relationship between them.

Strategic Objectives are obtained from other tools (Business definition, View, Mission, Porter, Setting and SWOT) and its priority is to identify those that most impact the Strategic Plan.

Strategic Objectives should be SMART (andScific, Measurable, Alcançável, Relevante e Temporal).

Ask “For what?” for a Strategic Objective helps you identify a more important goal or more impact, and assist you in prioritizing to be included in the Strategic Map.

– Importance:
Defines the main Strategic Objectives to be pursued by the company for one to achieve defined in VISION. Shows the relationship between the Strategic Objectives and how much an impact on the realization of other.

– Example:

9. Strategic panel

– What is it?
It is the break up of the Strategic Objectives contained in the Map, classifying them into four perspectives of the BSC (Financial, Customers, Internal Processes and People Management) and defining the indicators, Targets and Strategic Initiatives for each Goal, in other words, defines when each will be reached.

Indicators tell evolution of Strategic Objective over the period to arrive at VISION.

Targets are the goals to be achieved by the company and define the current time and the values ​​to be achieved in each period to achieve the set on VISION.

Initiatives may be identified Objectives, that they were not prioritized in the map and tell you how to achieve set targets.

– Importance:
Lists each Strategic Objective map with your Indicator, their targets over time and what are the initiatives that need to be performed.

Determines clearly as an objective will be accompanied (Indicator), where you want to go (Target) and what each needs to do (Initiatives)

– Example:

10. Action plan

– What is it?
It is an outcome of the initiatives set out in the Strategic Panel and is usually structured following the rule of “5W2H” (What, Why, Where, When, Who, How and How much).

Some companies add status information and return to its Action Plan.

It is not mandatory to use all the columns proposed by “5W2H” to develop a valid Action Plan. Will depend on the company's needs.

– Importance:
5W2H answers the questions for each initiative that, these form, enables monitoring of its realization.

– Example:

Conclusion

I hope you enjoyed resume and that this post has cleared up doubts. If any still remain, Make your comment in the form below and we will answer as best as possible.