The Tools of Strategic Analysis
Chapter 1
What is Strategy and the Strategic Management Process?
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall.
1-1
The Tools of Strategic Analysis
Walt Disney Company
1984 Profits: $242 Million
Theme Park Operations: 77 percent of profits Consumer Products: 22 percent of profits Filmed Entertainment: 1 percent of profits
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-2
The Tools of Strategic Analysis
Walt Disney Company
Hired Michael Eisner - 1984
1. Increased admission prices at theme parks 1984 - $186 m 1989 - $787 m 2. Focused on movie studios (character development) 1984 - $2.42 m 1994 - $845 m
3. Diversified into television (ABC), hotels, retail stores, sport team, cruise line, publishing, consumer products, licensing, etc. (Huey & McGowan, 1995)
Market Cap: 1984 = $2 billion 1994 = $28 billion
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-3
The Tools of Strategic Analysis
Definition of Strategy
Strategy: A firm’s theory about how to gain competitive advantages
Eisner’s theory may have been:
People will pay a premium price for extraordinary entertainment. We have the necessary resources to create extraordinary entertainment. Therefore, let’s redeploy our resources in a different way and offer something extraordinary to people.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-4
The Tools of Strategic Analysis
The Strategic Management Process
External Analysis
Mission
Objectives
Strategic Choice
Strategy Implementation
Competitive Advantage
Internal Analysis
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-5
The Tools of Strategic Analysis
The Strategic Management Process
External Analysis
Objectives
Strategic Choice
Strategy Implementation
Competitive Advantage
Internal Analysis
Mission
Copyright © 2012 Pearson Education,
What is Strategy and the Strategic Management Process?
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall.
1-1
The Tools of Strategic Analysis
Walt Disney Company
1984 Profits: $242 Million
Theme Park Operations: 77 percent of profits Consumer Products: 22 percent of profits Filmed Entertainment: 1 percent of profits
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-2
The Tools of Strategic Analysis
Walt Disney Company
Hired Michael Eisner - 1984
1. Increased admission prices at theme parks 1984 - $186 m 1989 - $787 m 2. Focused on movie studios (character development) 1984 - $2.42 m 1994 - $845 m
3. Diversified into television (ABC), hotels, retail stores, sport team, cruise line, publishing, consumer products, licensing, etc. (Huey & McGowan, 1995)
Market Cap: 1984 = $2 billion 1994 = $28 billion
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-3
The Tools of Strategic Analysis
Definition of Strategy
Strategy: A firm’s theory about how to gain competitive advantages
Eisner’s theory may have been:
People will pay a premium price for extraordinary entertainment. We have the necessary resources to create extraordinary entertainment. Therefore, let’s redeploy our resources in a different way and offer something extraordinary to people.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-4
The Tools of Strategic Analysis
The Strategic Management Process
External Analysis
Mission
Objectives
Strategic Choice
Strategy Implementation
Competitive Advantage
Internal Analysis
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
1-5
The Tools of Strategic Analysis
The Strategic Management Process
External Analysis
Objectives
Strategic Choice
Strategy Implementation
Competitive Advantage
Internal Analysis
Mission
Copyright © 2012 Pearson Education,