Strat man

• Strategic Management Processes


  1. Strategy analysis

  2. Strategy formulation

  3. Strategy implementation
• Intended Strategy


  • Organizational decisions are determined only by analysis
• Realized Strategy


  • Organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences
• Strategy Analysis


  Study of firms’ external and internal environments, and their fit with organizational vision and goals
• Strategy Formulation


  Decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage
• Strategy Implementation


  Actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership
• Corporate Governance


  • Relationship among shareholders, management, and the board of directors in determining the direction and performance of corporations
• Stakeholder Management


  A firm’s strategy for recognizing and responding to the interests of all its salient stakeholders
• Social Responsibility


  • Expectation that businesses or individuals will strive to improve the overall welfare of society
• Triple Bottom Line


  • Assessment of a firm’s financial, social, and environmental performance
• Hierarchy Of Goals


  • Organizational goals ranging from less specific yet powerful and compelling mental images to more specific and measurable goals
• Vision


  Organizational goal(s) that evoke(s) powerful and compelling mental images
• Mission Statement


  Set of organizational goals that identifies the purpose of the organization, its basis of competition, and competitive advantage
• Strategic Objectives


  Organizational goals used to put into practice the mission statement, specific and covering a well-defined time frame
• Romantic View of Leadership


  Implicit assumption that the leader is the key force in determining an organization’s success or lack thereof
• External Control View of Leadership


  Implicit assumption that the leader is the most important factor in determining organizational outcomes, focus is on external factors that may positively (or negatively) affect a firm’s success
• Incremental Management


  Viewing their job as making a series of small, minor changes to improve the efficiency of their firm’s operations
• Strategic Management


  Analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages
• Ongoing Processes of Strategic Management

  • Analyses
  • Decisions
  • Actions
• Strategic Management is an ongoing process
• Strategy


  Ideas, decisions, and actions that enable a firm to succeed
• Competitive advantage


  A firm’s resources and capabilities that enable it to overcome the competitive forces in its industries
• Operational Effectiveness


  Performing similar activities better than rivals
• Stakeholders


  • Owners (shareholders in a publicly held corporation)
  • Employees
  • Customers
  • Suppliers
  • Community at large
• Four Key Attributes of Strategic Management

  • Directed toward overall organizational goals and objectives
  • Includes multiple stakeholders in decision making
  • Requires incorporating both short-term and long-term perspectives
  • Involves the recognition of trade-offs between effectiveness and efficiency
• Peter Senge: 'referred to the need for incorporating both short-term and long-term perspectives as a “creative tension”'
• Effectiveness


  Tailoring actions to the needs of an organization rather than wasting effort, or “doing the right thing”
• Efficiency


  Performing actions at a low-cost relative to a benchmark, or “doing things right”
• Innovation Paradox


  • The tension between existing products and new ones, stability and change
• Globalization Paradox


  • The tension between global connectedness and local needs
• Obligation Paradox


  • Being socially responsible may bring down a firm’s share price, and prioritizing employees may conflict with short-term shareholders’ or customers’ needs
• Ambidexterity


  The challenge managers face of aligning resources to take advantage of existing product markets and proactively exploring new opportunities
• Strategic Management Processes


  • Three ongoing processes: analyses, decisions, actions (ADA)
  • Strategy analysis, strategy formulation, strategy implementation