Summary
Strategic Management Latest update
Introduction
Effective Managers Recognize The Role That Strategic Management Plays In
Their Organization’s Performance. Throughout This Chapter, Students Discover
That Good Strategies Can Lead To High Organizational Performance.
Strategic Management
Managers Must Carefully Consider Their Organization’s Internal And External
Environments As They Develop Strategic Plans. They Should Have A
Systematic Means Of Analyzing The Environment, Assessing Their
Organization’s Strengths And Weaknesses, Identifying Opportunities That
Would Give The Organization A Competitive Advantage, And Incorporating
These Findings Into Their Planning. The Value Of Thinking Strategically Has An
Important Impact On Organization Performance.
A. What Is Strategic Management?
1. Strategic Management Is What Managers Do To Develop
The Organization’s Strategies.
2. Strategies Are The Plans For How The Organization Will Do
Whatever It’s In Business To Do, How It Will Compete
Successfully, And How It Will Attract And Satisfy Its Customers In
Order To Achieve Its Goals.
3. A Business Model Is Simply How A Company Is Going To Make
Money. It Focuses On Two Things: (1) Whether Customers Will
Value What The Company Is Providing And (2) Whether The
Company Can Make Any Money Doing That.
B. Why Is Strategic Management Important?
1. Strategic Management Has A Significant Impact On How Well
An Organization Performs.
2. In Today’s Business World, Organizations Of All Types And
Sizes Must Manage Constantly Changing Situations.
3. Today’s Companies Are Composed Of Diverse
Divisions, Departments, Functions, And Work Activities
That Must Be Coordinated.
4. Strategic Management Is Involved In Many Of The Decisions
That Managers Make.
The Strategic Management Process
The Strategic Management Process Is A Six-Step Process That Encompasses
Strategic Planning, Implementation, And Evaluation. (See Exhibit 9-1)
A. Step 1: Identifying The Organization’s Current Mission, Goals,
And Strategies.
1. Every Organization Needs A Mission, Which Is A Statement Of
The Purpose Of An Organization. The Mission Statement
Addresses The Question: What Is The Organization’s Reason For
Being In Business?
, 2. The Organization Must Also Identify Its Current Goals And
Strategies. See Exhibit 9-2 For A List Of Components Of A
Mission Statement.
B. Step 2: Doing An External Analysis.
1. Managers In Every Organization Need To Conduct An External
Analysis. Influential Factors Such As Competition, Pending
Legislation, And Labor Supply Are Included In The External
Environment.
2. After Analyzing The External Environment, Managers Must
Assess What They Have Learned In Terms Of Opportunities And
Threats. Opportunities Are Positive Trends In External
Environmental Factors; Threats Are Negative Trends In
Environmental Factors.
3. Because Of Different Resources And Capabilities, The Same
External Environment Can Present Opportunities To One
Organization And Pose Threats To Another.
C. Step 3: Doing An Internal Analysis.
1. Internal Analysis Should Lead To A Clear Assessment Of
The Organization’s Resources And Capabilities.
2. The Organization’s Major Value-Creating Skills And Capabilities
That Determine Its Competitive Weapons Are The Organization’s
Core Competencies.
3. Any Activities The Organization Does Well Or Any Unique
Resources That It Has Are Called Strengths.
4. Weaknesses Are Activities The Organization Does Not Do
Well Or Resources It Needs But Does Not Possess.
5. Organizational Culture Is Important In Internal Analysis; The
Company’s Culture Can Promote Or Hinder Its Strategic
Actions.
6. Swot Analysis Is An Analysis Of The Organization’s
Strengths, Weaknesses, Opportunities, And Threats.
D. Step 4: Formulating Strategies.
1. After The Swot, Managers Develop And Evaluate Strategic
Alternatives And Select Strategies That Are Appropriate.
2. Strategies Need To Be Established For Corporate, Business,
And Functional Levels.
E. Step 5: Implementing Strategies.
1. A Strategy Is Only As Good As Its Implementation.
F. Step 6: Evaluating Results.
1. The Final Step In The Strategic Management Process Is
Evaluating Results. How Effective Have The Strategies Been At Helping
The Organization Reach Its Goals?
Corporate Strategies
Strategic Planning Takes Place On Three Different And Distinct Levels:
Corporate, Business, And Functional. (See Exhibit 9-3)
A. What Is Corporate Strategy? Corporate Strategy Is An
Organizational Strategy That Determines What Businesses A Company
Is In, Should Be In, Or Wants To Be In, And What It Wants To Do With
Those Businesses.
B. What Are The Types Of Corporate Strategy?
1. There Are Three Main Types Of Corporate Strategies:
Strategic Management Latest update
Introduction
Effective Managers Recognize The Role That Strategic Management Plays In
Their Organization’s Performance. Throughout This Chapter, Students Discover
That Good Strategies Can Lead To High Organizational Performance.
Strategic Management
Managers Must Carefully Consider Their Organization’s Internal And External
Environments As They Develop Strategic Plans. They Should Have A
Systematic Means Of Analyzing The Environment, Assessing Their
Organization’s Strengths And Weaknesses, Identifying Opportunities That
Would Give The Organization A Competitive Advantage, And Incorporating
These Findings Into Their Planning. The Value Of Thinking Strategically Has An
Important Impact On Organization Performance.
A. What Is Strategic Management?
1. Strategic Management Is What Managers Do To Develop
The Organization’s Strategies.
2. Strategies Are The Plans For How The Organization Will Do
Whatever It’s In Business To Do, How It Will Compete
Successfully, And How It Will Attract And Satisfy Its Customers In
Order To Achieve Its Goals.
3. A Business Model Is Simply How A Company Is Going To Make
Money. It Focuses On Two Things: (1) Whether Customers Will
Value What The Company Is Providing And (2) Whether The
Company Can Make Any Money Doing That.
B. Why Is Strategic Management Important?
1. Strategic Management Has A Significant Impact On How Well
An Organization Performs.
2. In Today’s Business World, Organizations Of All Types And
Sizes Must Manage Constantly Changing Situations.
3. Today’s Companies Are Composed Of Diverse
Divisions, Departments, Functions, And Work Activities
That Must Be Coordinated.
4. Strategic Management Is Involved In Many Of The Decisions
That Managers Make.
The Strategic Management Process
The Strategic Management Process Is A Six-Step Process That Encompasses
Strategic Planning, Implementation, And Evaluation. (See Exhibit 9-1)
A. Step 1: Identifying The Organization’s Current Mission, Goals,
And Strategies.
1. Every Organization Needs A Mission, Which Is A Statement Of
The Purpose Of An Organization. The Mission Statement
Addresses The Question: What Is The Organization’s Reason For
Being In Business?
, 2. The Organization Must Also Identify Its Current Goals And
Strategies. See Exhibit 9-2 For A List Of Components Of A
Mission Statement.
B. Step 2: Doing An External Analysis.
1. Managers In Every Organization Need To Conduct An External
Analysis. Influential Factors Such As Competition, Pending
Legislation, And Labor Supply Are Included In The External
Environment.
2. After Analyzing The External Environment, Managers Must
Assess What They Have Learned In Terms Of Opportunities And
Threats. Opportunities Are Positive Trends In External
Environmental Factors; Threats Are Negative Trends In
Environmental Factors.
3. Because Of Different Resources And Capabilities, The Same
External Environment Can Present Opportunities To One
Organization And Pose Threats To Another.
C. Step 3: Doing An Internal Analysis.
1. Internal Analysis Should Lead To A Clear Assessment Of
The Organization’s Resources And Capabilities.
2. The Organization’s Major Value-Creating Skills And Capabilities
That Determine Its Competitive Weapons Are The Organization’s
Core Competencies.
3. Any Activities The Organization Does Well Or Any Unique
Resources That It Has Are Called Strengths.
4. Weaknesses Are Activities The Organization Does Not Do
Well Or Resources It Needs But Does Not Possess.
5. Organizational Culture Is Important In Internal Analysis; The
Company’s Culture Can Promote Or Hinder Its Strategic
Actions.
6. Swot Analysis Is An Analysis Of The Organization’s
Strengths, Weaknesses, Opportunities, And Threats.
D. Step 4: Formulating Strategies.
1. After The Swot, Managers Develop And Evaluate Strategic
Alternatives And Select Strategies That Are Appropriate.
2. Strategies Need To Be Established For Corporate, Business,
And Functional Levels.
E. Step 5: Implementing Strategies.
1. A Strategy Is Only As Good As Its Implementation.
F. Step 6: Evaluating Results.
1. The Final Step In The Strategic Management Process Is
Evaluating Results. How Effective Have The Strategies Been At Helping
The Organization Reach Its Goals?
Corporate Strategies
Strategic Planning Takes Place On Three Different And Distinct Levels:
Corporate, Business, And Functional. (See Exhibit 9-3)
A. What Is Corporate Strategy? Corporate Strategy Is An
Organizational Strategy That Determines What Businesses A Company
Is In, Should Be In, Or Wants To Be In, And What It Wants To Do With
Those Businesses.
B. What Are The Types Of Corporate Strategy?
1. There Are Three Main Types Of Corporate Strategies:
