Professional Documents
Culture Documents
Ch 1 -1
Strategic Management –Defined
Ch 1 -2
Purpose of Strategic Management
Ch 1 -3
Strategic Management
Ch 1 -4
3 Stages of the Strategic
Management Process
Strategy formulation
Strategy implementation
Strategy evaluation
Ch 1 -5
Strategy Formulation
Long-Term Objectives
Alternative Strategies
Strategy Selection
Ch 1 -6
Issues in Strategy
Formulation
Businesses to enter
Businesses to abandon
Allocation of resources
Expansion or
diversification
International markets
Mergers or joint
ventures
Avoidance of hostile
takeover
Ch 1 -7
Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
Ch 1 -8
Strategy Implementation Steps
Ch 1 -9
Issues in Strategy
Implementation
Mobilization of
employees & managers
Interpersonal skills
critical
Ch 1 -10
Strategy Evaluation
Internal Review
External Review
Performance Measurement
Corrective Action
Ch 1 -11
Prime Task of
Strategic Management
Ch 1 -12
Integrating Intuition & Analysis
Ch 1 -13
Integrating Intuition & Analysis
Judgment
Feelings
Little precedent
Ch 1 -14
Integrating Intuition & Analysis
Ch 1 -15
Adapting to Change
Ch 1 -16
Key Terms in Strategic Management
Competitive advantage
Strategists
Vision and mission statements
External opportunities and threats
Internal strengths and weaknesses
Long-term objectives
Strategies
Annual objectives
Policies
Ch 1 -17
Strategic Management is
Gaining and Maintaining
Competitive Advantage
Ch 1 -18
Achieving Sustained Competitive
Advantage
Ch 1 -19
Strategists
Gather Information
Analyze Information
Organize Information
Ch 1 -20
Vision and Mission Statements
Vision Statement –
What do we want to become?
Mission Statement –
What is our business?
Ch 1 -21
External Opportunities and Threats
Analysis of Trends
Economic
Social
Cultural
Demographic/Environmental
Political, Legal, Governmental
Technological
Competitors
Ch 1 -22
External Opportunities and Threats
Take advantage of
External Opportunities
Strategy Formulation
Avoid/minimize impact of
External Threats
Ch 1 -23
Internal Strengths and Weaknesses
Controllable
activities performed
especially well or poorly
Ch 1 -24
Internal Strengths and Weaknesses
Management
Marketing
Finance/Accounting
Production/Operations
Ch 1 -25
Internal Strengths and Weaknesses
Ratios
Performance Measures
Internal Factors
Industry Averages
Survey Data
Ch 1 -26
Long-Term Objectives
Ch 1 -27
Long-Term Objectives
Aid in evaluation
Create synergy
Reveal priorities
Focus coordination
Ch 1 -28
Strategies
Ch 1 -29
Strategies
Examples
Geographic expansion
Diversification
Acquisition
Product development
Market penetration
Retrenchment
Divestiture
Liquidation
Joint venture
Ch 1 -30
Sample Strategies
Table 1-1
Best Buy
Levi Strauss
Ch 1 -31
Annual Objectives
Ch 1 -32
Policies
Ch 1 -33
Ch 1 -34
Strategic Management Model
StrategicManagement Process
Dynamic & continuous
More formal in larger
organizations
Ch 1 -35
Strategic Management
Communication is a key to
successful strategic management
Ch 1 -36
Benefits of Strategic Management
Ch 1 -37
Benefits of Strategic Management
Nonfinancial Benefits
Enhanced awareness of threats
Improved understanding of competitors’ strategies
Increased employee productivity
Reduced resistance to change
Clearer understanding of performance-reward
relationship
Enhanced problem-prevention capabilities
Ch 1 -38
Why Some Firms Do No Strategic
Planning
Lack of knowledge of strategic planning
Poor reward structures
Fire fighting
Waste of time
Too expensive
Laziness
Content with success
Ch 1 -39
Why Some Firms Do No Strategic
Planning (continued)
Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
Honest difference of opinion
Suspicion
Ch 1 -40
Pitfalls in Strategic Planning
Ch 1 -41
Effective Strategic Planning is:
Ch 1 -43
Effective Strategic Planning
continued
Is not a formal system for control
Does not disregard qualitative information
Is not controlled by “technicians”
Does not pursue too many strategies at once
Continually strengthens the “good ethics is
good business” policy
Ch 1 -44
Comparing Business and Military
Strategy
Strategic planning started in the military
Similarity
Both business and military organizations must
adapt to change and constantly improve
Difference
Business strategy assumes competition
Military strategy assumes conflict
Ch 1 -45