Chapter 15 Strategic management
1. Strategic management............................................................................................................... 2
2. Strategic management process ................................................................................................ 2
2.1. Strategic direction and control .............................................................................................. 2
2.2. External environment analysis .............................................................................................. 3
2.3. Internal analysis.................................................................................................................... 3
2.4. Strategic choice.................................................................................................................... 3
2.5. Strategy implantation............................................................................................................ 3
2.5.1. Alignment of business and functional strategies............................................................ 3
2.5.2. Leadership and culture ................................................................................................. 4
2.5.3. Competencies, technology and processes.................................................................... 4
2.6. Strategic control.................................................................................................................... 4
2.6.1. Competitive intelligence ................................................................................................ 5
2.6.2. Business intelligence .................................................................................................... 5
2.6.3. Integrating mechanisms................................................................................................ 6
Chapter 15 Strategic management.doc 1
, • Considers organization environment (internal and external) to identify SWOT
• Provides direction and intent to organization
• Id most suitable ways of creating value for stakeholders
• Provide system to co-ordinate management activity throughout organization
1. Strategic management
• Overall purpose is to ensure consistency in management or organization
• Selected strategic need to be consistent with opp and threats of external environment
• Selected strategic need to be consistent with core and distinctive capabilities
• See table 15.1 on page 533 management diff organization levels
• Good strategic management 3 outcomes:
o Optimizes consistency between diff levels of management
o Optimizes consistency between organization and internal and external environment
o Leads to sustained performance higher than industry norm = sustainable competitive
advantage
2. Strategic management process
• Strategic process
• Strategic objectives
• External environment analysis
• Internal analysis
• Selections of strategies
• Strategy implementation
• Strategic control
2.1. Strategic direction and control
• Direction consist of vision and mission
• Vision – dream of original founder
• Mission – grounded expression of overall purpose or organization
• Gamble and Thompson = vision is long term future view of top management of product – customer
– maker – technology focus on organization
• Characteristics of vision statements:
o Should serve as inspiration to stakeholders
o Should inspire commitment and confidence
o Should be short enough to remember
o Should be closely identified with organization
o Contain some indication of future direction
• Mission = expression of current focus + long term purpose of organization
• First step in process to dev objectives
• Should be SMART
• Should not just be financial but cover other areas as well
• Balanced scorecard developed for this reason:
• It addresses:
Chapter 15 Strategic management.doc 2
1. Strategic management............................................................................................................... 2
2. Strategic management process ................................................................................................ 2
2.1. Strategic direction and control .............................................................................................. 2
2.2. External environment analysis .............................................................................................. 3
2.3. Internal analysis.................................................................................................................... 3
2.4. Strategic choice.................................................................................................................... 3
2.5. Strategy implantation............................................................................................................ 3
2.5.1. Alignment of business and functional strategies............................................................ 3
2.5.2. Leadership and culture ................................................................................................. 4
2.5.3. Competencies, technology and processes.................................................................... 4
2.6. Strategic control.................................................................................................................... 4
2.6.1. Competitive intelligence ................................................................................................ 5
2.6.2. Business intelligence .................................................................................................... 5
2.6.3. Integrating mechanisms................................................................................................ 6
Chapter 15 Strategic management.doc 1
, • Considers organization environment (internal and external) to identify SWOT
• Provides direction and intent to organization
• Id most suitable ways of creating value for stakeholders
• Provide system to co-ordinate management activity throughout organization
1. Strategic management
• Overall purpose is to ensure consistency in management or organization
• Selected strategic need to be consistent with opp and threats of external environment
• Selected strategic need to be consistent with core and distinctive capabilities
• See table 15.1 on page 533 management diff organization levels
• Good strategic management 3 outcomes:
o Optimizes consistency between diff levels of management
o Optimizes consistency between organization and internal and external environment
o Leads to sustained performance higher than industry norm = sustainable competitive
advantage
2. Strategic management process
• Strategic process
• Strategic objectives
• External environment analysis
• Internal analysis
• Selections of strategies
• Strategy implementation
• Strategic control
2.1. Strategic direction and control
• Direction consist of vision and mission
• Vision – dream of original founder
• Mission – grounded expression of overall purpose or organization
• Gamble and Thompson = vision is long term future view of top management of product – customer
– maker – technology focus on organization
• Characteristics of vision statements:
o Should serve as inspiration to stakeholders
o Should inspire commitment and confidence
o Should be short enough to remember
o Should be closely identified with organization
o Contain some indication of future direction
• Mission = expression of current focus + long term purpose of organization
• First step in process to dev objectives
• Should be SMART
• Should not just be financial but cover other areas as well
• Balanced scorecard developed for this reason:
• It addresses:
Chapter 15 Strategic management.doc 2
