Strategic
Management
Concepts and Cases,
4e Jeffrey Dyer, Paul
Godfrey, Robert
Jensen, David Bryce
(Solutions Manual
All Chapters)
,Strategic Management Instructor’s Manual Chapter 1: What Is Business Strategy?
Chapter 1: What Is Business Strategy?
Learning Objectives
Studying this chapter should provide you with the knowledge to:
• Define business strategy, including the importance of competitive advantage,
the four choices that are critical to strategy formulation, and the strategic
management process.
• Summarize the information that the company’s mission and thorough external
and internal analysis provide to guide strategy.
• Discuss how strategies are formulated and implemented in order to achieve
objectives.
• Explain who is responsible for, and who benefits from, good business strategy.
Purpose
Although this is no one tool acquired in this chapter, the purpose of the lecture is to
familiarize the student with what strategy is and instill the realization that being
understanding strategy is vital to competitiveness.
Outline
Strategy at Tesla
WHAT IS BUSINESS STRATEGY?
Competitive Advantage
Strategy in Practice: Measuring American Home Products’ Competitive Advantage
The Strategic Management Process
WHAT INFORMATION AND ANALYSIS GUIDES STRATEGY FORMULATION?
Mission
External Analysis
Strategy in Practice: Apple’s Evolving Mission
Internal Analysis
HOW ARE STRATEGIES FORMULATED?
Copyright ©2022 John Wiley & Sons, Inc. IM 1 - 1
, Strategic Management Instructor’s Manual Chapter 1: What Is Business Strategy?
Strategy Vehicles for Achieving Strategic Objectives
Strategy Implementation
Strategy in Practice: Walmart Functional Strategies Implement the Overall “Low Cost”
Strategy
WHO IS RESPONSIBLE FOR BUSINESS STRATEGY?
Ethics and Strategy: The Price Companies Pay to Stay Competitive
Who Benefits from a Good Business Strategy?
Strategy in Your Career
Summary • Key Terms • Review Questions • Application Exercises • References
Answers to Review Questions
1. Why is it important for you to understand business strategy?
When starting a company or being president or general manger within one,
developing strategy is a primary job. As a junior officer in a company, developing
and implementing ideas that are consistent with corporate strategy could lead to
early promotions. You can also evaluate the potential success of companies that
you may work for by understanding their strategy.
2. How would you describe/define strategy?
A plan to achieve competitive advantage
3. What are the four choices that are part of strategy formulation?
What markets or industries will the company pursue?
What unique value should the company offer the customer in those markets?
What resources and capabilities will allow the firm to deliver unique value better
than competitors?
How will the company sustain its advantage and prevent imitation of its
strategy?
4. What are the two generic strategies, or primary ways, in which companies
attempt to offer unique value relative to competitors?
Low cost or differentiation
Copyright ©2022 John Wiley & Sons, Inc. IM 1 - 2
Management
Concepts and Cases,
4e Jeffrey Dyer, Paul
Godfrey, Robert
Jensen, David Bryce
(Solutions Manual
All Chapters)
,Strategic Management Instructor’s Manual Chapter 1: What Is Business Strategy?
Chapter 1: What Is Business Strategy?
Learning Objectives
Studying this chapter should provide you with the knowledge to:
• Define business strategy, including the importance of competitive advantage,
the four choices that are critical to strategy formulation, and the strategic
management process.
• Summarize the information that the company’s mission and thorough external
and internal analysis provide to guide strategy.
• Discuss how strategies are formulated and implemented in order to achieve
objectives.
• Explain who is responsible for, and who benefits from, good business strategy.
Purpose
Although this is no one tool acquired in this chapter, the purpose of the lecture is to
familiarize the student with what strategy is and instill the realization that being
understanding strategy is vital to competitiveness.
Outline
Strategy at Tesla
WHAT IS BUSINESS STRATEGY?
Competitive Advantage
Strategy in Practice: Measuring American Home Products’ Competitive Advantage
The Strategic Management Process
WHAT INFORMATION AND ANALYSIS GUIDES STRATEGY FORMULATION?
Mission
External Analysis
Strategy in Practice: Apple’s Evolving Mission
Internal Analysis
HOW ARE STRATEGIES FORMULATED?
Copyright ©2022 John Wiley & Sons, Inc. IM 1 - 1
, Strategic Management Instructor’s Manual Chapter 1: What Is Business Strategy?
Strategy Vehicles for Achieving Strategic Objectives
Strategy Implementation
Strategy in Practice: Walmart Functional Strategies Implement the Overall “Low Cost”
Strategy
WHO IS RESPONSIBLE FOR BUSINESS STRATEGY?
Ethics and Strategy: The Price Companies Pay to Stay Competitive
Who Benefits from a Good Business Strategy?
Strategy in Your Career
Summary • Key Terms • Review Questions • Application Exercises • References
Answers to Review Questions
1. Why is it important for you to understand business strategy?
When starting a company or being president or general manger within one,
developing strategy is a primary job. As a junior officer in a company, developing
and implementing ideas that are consistent with corporate strategy could lead to
early promotions. You can also evaluate the potential success of companies that
you may work for by understanding their strategy.
2. How would you describe/define strategy?
A plan to achieve competitive advantage
3. What are the four choices that are part of strategy formulation?
What markets or industries will the company pursue?
What unique value should the company offer the customer in those markets?
What resources and capabilities will allow the firm to deliver unique value better
than competitors?
How will the company sustain its advantage and prevent imitation of its
strategy?
4. What are the two generic strategies, or primary ways, in which companies
attempt to offer unique value relative to competitors?
Low cost or differentiation
Copyright ©2022 John Wiley & Sons, Inc. IM 1 - 2
