ch01.ppt
TRANSCRIPT
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1Strategic Management in Action
Introducing the Concepts
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Learning Objectives
1. Discuss why strategic management is important.
2. Define strategy and strategic management.
3. Describe the strategic management process.
4. Describe the three levels of organizational strategies.
5. Explain the historical evolution of strategic management.
6. Rebut misconceptions about strategy and strategic management.
7. Explain who’s involved with strategic management and their role in managing strategically.
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WHY IS STRATEGIC MANAGEMENT IMPORTANT?
Strategic Management
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Gives everyone a role
Makes a difference in performance levels
Provides systematic approach to uncertainties
Coordinates and focuses employees
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WHAT IS STRATEGIC MANAGEMENT?
Strategy
vs.
Strategic Management
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The Basics of Strategy & Strategic Management
Definition of Strategy
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A series of goal-directed decisions and actions
matching an organization's skills and resources
with the opportunities and threats in its environment
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The Basics of Strategy & Strategic Management
Strategy Involves:
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Organization’s goals
Goal-directed action
Related decisions and actions
Internal strengths
External opportunities and threats
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The Basics of Strategy & Strategic Management
Definition of Strategic Management
Decisions and actions where organizations
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Analyze current situation
Develop appropriate strategies
Put strategies into action
Evaluate, modify, or change strategies
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The Basics of Strategy & Strategic Management
Strategic Management entails:
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Basic managerial functions
Planning
Organizing
Implementing
Controlling
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Basic
Activities
of
Strategic
Management
Figure 1-1
The Basics of Strategy & Strategic Management
Strategy Formulation
Strategy Implementation
Strategy Evaluation
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The Basics of Strategy & Strategic Management
Strategic Management“Big picture” view of organization
influenced by its external environment
Four aspects that set apart Strategic Management
Interdisciplinary
External focus
Internal focus
Future direction
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The Strategic Management Process
AnalyzingCurrent
Situation
Decidingon
Strategies
PuttingStrategiesin Action
Evaluating andChanging Strategies
SituationAnalysis
StrategyFormulation
StrategyImplementation
StrategyEvaluation
Chapter 2 Chapter 3
Chapter 4
ExternalAnalysis
InternalAnalysis
Organizational Context
Chapter 5 Chapter 6
Chapter 7
Functional Competitive
Corporate
Strategic Management in Action Figure 1-2
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The Strategic Management Process
Situation Analysis
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Scanning and evaluating context
External environment
Organizational environment
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The Strategic Management Process
Strategy Formulation
Three organizational levels
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Functional strategies
Competitive strategies
Corporate strategies
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The Strategic Management Process
Strategy Implementation
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Process of putting strategies into action
Strategy Evaluation
Process of evaluating:
How the strategy has been implemented
Outcomes of the strategy
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The Strategic Management Process
Continuing Process ofStrategic Management in Action
Ongoing and continuous cycle of
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Strategy formulation
Strategy implementation
Strategy evaluation
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Looking at Strategic Management’s Past
Strategy’s Military Roots
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Battlefield strategies to gain an edge
Exploit weak spots
Academic Origins of Strategic Management
Economic theory
Early organizational studies
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Looking at Strategic Management’s Past
Strategic Planning & Strategic Management Emerge
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Before 1960Not an area of study
During the 1960sStrategy and StructureCorporate StrategyBusiness Policy: Text and Cases
During the 1970s and 1980sBecomes distinct academic fieldResearch focus on strategic decisions vs. performance
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Misconceptions AboutStrategy and Strategic Management
Misconceptions
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Strategy and strategic planning are dead
Strategy is strictly for top management
Strategy is about planning
Strategy is stable and constant
Strategic management outlines ultimate destination & route
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WHO’S INVOLVED WITH STRATEGIC MANAGEMENT?
The Role of the Board of Directors••
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Elected representatives of the company’s stockholders
Legally obligated to represent and protect stockholder’s interest
The Role of Top ManagementResponsible for every decision and action of every employee
Providing effective leadership
Other Strategic Managers and Organizational EmployeesImplement— put the strategies into action and monitor performance
Evaluate—do the actual evaluations and take necessary actions
Open book management
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The Role of the Board of Directors
Table 1-2 Typical Board Responsibilities
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Review and approve strategic goals and plans
Review and approve organization's financial standards and policies
Ensure integrity of organization's financial controls and reporting systems
Approve an organizational philosophy
Monitor organizational performance and regularly review performance results
Select, evaluate, and compensate top-level managers
Develop management succession plans
Review and approve capital allocations and expenditures
Monitor relations with shareholders and other key stakeholders
Other responsibilities may be assigned depending on the unique culture and needs of the organization
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The Role of Top Management
Top Management
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CEO Chief Executive Officer
COO Chief Operating Officer
CFO Chief Financial Officer
CIO Chief Information Officer
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The Role of Top Management
EffectiveStrategic
Leadership
Exploiting andMaintaining
Core Competencies
DevelopingHumanCapital
Creating andSustaining Strong
Organizational Culture
EmphasizingEthical Decisions
and Practices
EstablishingAppropriately
Balanced Controls
DeterminingOrganizational
Purpose or Vision
Effective
Strategic
Leadership
Involves
Figure 1-5
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Chapter One
Questions