Lecture 1 shrdm

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STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 1

Basic Concepts

of Strategic

Management

Strategy vs. Technique

• Strategy usually requires some sort of

planning. You'd probably use strategy

when faced with a new situation, ie. the

strategy to win a game.

• Technique is a procedure or skill for

completing a specific task. I'd imagine this

would be used for predictable events, ie.

solving a long division equation.

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Methods vs. Approach

• Method is a way something is done.

Perhaps used for routine tasks.

• An approach is treating something in a

certain way. Experiments must be

approached the same way to repeat

desired results.

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Strategic Management Defined

Set of managerial decisions and actions that determines the long-run performance of a firm.

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Basic Concepts of Strategic Management

4 Phases of Strategic Management

1. Basic financial planning

2. Forecast-based planning

3. Externally-oriented planning

4. Strategic management

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Highly Rated Benefits

• Clearer sense of strategic vision

• Sharper focus on strategic importance

• Improved understanding of changing environment

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Basic Elements of the Strategic

Management Process

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Environmental Scanning Defined

Monitoring, evaluation, and disseminating information from external and internal environments –to key people in the firm

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Environmental

Variables

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Environmental Scanning

SWOT Analysis

• Strengths – Weaknesses

• Opportunities - Threats

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Strategy Formulation

Development of long-range plans for effective management of opportunities and threats in light of corporate strengths and weaknesses

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Strategy Formulation

Mission Statement

• Purpose/reason for organization

• Promotes shared expectations

• Communicates public image

• Who we are; what we do; what we aspire to

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Organizational Adaptation

Organization “fit” with environment

• Theory of population ecology

• Institution theory

• Strategic choice perspective

• Organizational learning theory

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Organizational Adaptation

Strategic flexibility

• Demands long-term commitment to development of critical resources

• Demands firm become a learning organization

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Learning Organizations

An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

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Learning Organizations

4 Chief Activities

• Systematic problem solving

• New approach experimentation

• Learning from experiences

• Intra-organization knowledge transfer

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Hierarchy of

Strategy

Lecture 1 shrdm

Business

Transcript of Lecture 1 shrdm