Summary PDF version book Strategic Management

Summary PDF
Strategic
Management
International
Business: Year 4

,Table of Contents

Lecture 01: Introducing the concepts.....................................................................................................2
Lecture 02: The Context – Managing Strategically.................................................................................6
Lecture 03: The External Factor Evaluation (EFE) Matrix......................................................................10
Lecture 4: Doing an internal analysis....................................................................................................11
Lecture 5: Functional & Competitive Strategies...................................................................................14
Lecture 6: Corporate Strategies............................................................................................................18
Lecture 7: International Strategies:......................................................................................................25




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, Lecture 01: Introducing the concepts

Why is strategic management important?
 It determines how well an organization performs.
 Organizations, of all types and sizes, face continually changing situations both
internally and externally.
 Various divisions, departments, and work activities of an organization should
be coordinated and focused on achieving the organization’s goals.
 It forces organizational decision-makers to think about relevant variables.

The definition of strategy:
 The organization’s goals – directed plans and actions that align its capabilities
and resources with the opportunities and threats in its environment.
 Goal-directed actions.
 Implementing the strategy.
 The organization's capabilities and resources.
 The organization’s external opportunities and threats.

Definition of strategic management:
Strategic management is a process of analyzing the current situation, developing
appropriate strategies, putting those strategies into action, and evaluating and
changing those strategies as needed.

The basic activities of strategic management:
1. Situation analysis:
 Scanning and evaluating the current organizational context, the external
and organizational environment.

2. Strategy formulation:
 Developing and choosing appropriate strategies.

2.1 Types of strategies:
Functional / Operational strategies: goal-directed plans and actions of
the organization’s functional areas.

Competitive / business strategies: goal-directed plans and actions
concerned with how an organization competes in a specific business or
industry. The competitive strategies address the competitive advantages
an organization currently has or wants to develop.

Corporate strategies: goal-directed plans and actions concerned with
the choices of what business(es) to be in and what to do with those
businesses.

3. Strategy implementation:
 Putting various strategies into action.

4. Strategy evaluation:
 Evaluating both the outcomes of the strategies and how they have been
implemented. If the implemented strategies do not align with the
expectation and strategic goals of the organizations, they should be
modified.


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