Ch. 1 Flashcards
Strategic Management Process
three ongoing process - analyses, decisions, and actions - also - strategy analysis, strategy formulation, and strategy implementation
intended strategy
strategy in which organizational decisions are determined only by analysis
realized strategy
of any firm is a combination of deliberate and emergent strategies
strategy analysis
starting point of the strategic management process. “advance work”.
strategy analysis - analyzing organizational goals and objectives
vision, mission, strategic objectives form hierarchy of goals
strategy analysis - analyzing the external environment of the firm
managers must scan the environment as well as analyze the competitors
1- the general environment consists of demographics and economic segments
2- industry environment constant of competitors and other organizations that may threaten the success of a firms products and services
strategy analysis - assessing the internal environment of the firm
analyzing the strengths and relationships the activities that constitute a firms value chain ( HR management, Marketing and sales, operations) can be a means of uncovering potential sources of competitive advantage for the firm
strategy analysis - assessing a firms intellectual assets
the knowledge worker and a firms other intellectual assets are important drivers of competitive advantages and wealth creation
strategy formation - formulating business level strategy
address the issue of how to compete in a given business to attain competitive advantage
strategy formation - formulating corporate - level strategy
addresses a firms portfolio of businesses
asks:
1- what business should we compete in
2- how can we manage this portfolio of businesses to create synergies among the business
strategy formation - formulating international strategy
when firms enter foreign markets - must develop international strategies as to ventures beyond its national boundaries
strategy formation - entrepreneurial strategy and competitive dynamics
managers must formulate effective entrepreneurial initiatives
- aimed at new creation for economic growth
strategy implementation
involves ensuring proper strategic controls and organizational designs, which includes establishing effective means to coordinate and integrate activities within the firm as well as with its suppliers, customers, and alliance partners
strategy implementation - strategic control and corporate governance
firm must exercise two types of strategic control
1- informational control requires that organizations continually monitor and scan the environment and respond to threats and opportunities
2- behavioral control involves the proper balance of rewards and incentives as well s cultures and boundaries
strategy implementation - creating effective organizational designs
firms must have organizational structures and design that are consistent with their strategy
- firms must ensure that their organizational boundaries are more flexible and permeable
corporate governance
the relationship among various participants in determining the direction and performance of corporations
1- shareholders
2- the management
3- the board of directors
strategic management
consists of analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages
analysis
of strategic goals (vision, mission, strategic objectives) along with the analysis of the internal and external environments of the organization
decisions
answers two questions
1- what to compete in
2-how to compete
actions
decisions acted on
-implement their strategies
operational effectiveness
performing similar activities better than rivals
sustainable completive advantage
only by performing different activities from rivals or performing similar activities in different wats
key attributes of strategic management - directed toward overall organizational goals and objectives
best for total organization
key attributes of strategic management - includes multiple stakeholders in decision making
stakeholders - those individuals, groups, and organization that have a stake in the success of the organization, including owners employees, suppliers.
key attributes of strategic management - requires incorporating both short term and long term perspectives
managers must maintain both a vision for the future and focus on its present operating needs
key attributes of strategic management - involves the recognition of trade offs between effectiveness and efficiency
efficiency - doing things right
effectiveness -doing the right thing
zero sum or symbiosis
zero sum - various stakeholders compete for the organizations resources: the gain of one individual or group is the loss of another individual or group
social responsibility
the expectation that businesses or individuals will strive to improve the overall welfare of society
triple bottom line
involves assessing financial, social, and environmental performance
three types of leaders
local line leaders - have significant profit and loss responsibility
executive leaders - champion and guide ideas, create a learning infrastructure and establish a domain for taking action
internal networkers - little positional power and formal authority, generate their power through the conviction and clarity of their ideas
hierarchy of goals
firms vision, mission, and strategic objectives
vision
is a goal that is “massively inspiring, overarching, and long term” it represents a destination that is driven by and evokes passion
visions fail for :
the walk doesn’t match the talk
irrelevance
not the holy grail
mission statement
differs from its vision in that it encompasses both the purpose of the company and the basis of competition and competitive advantage
strategic objectives
used to operationalize the mission statement
- guidance on how the organization can fulfill or move toward the higher goals
ambidexterity
the challenge managers face of both aligning resources to take advantage of existing product markets and proactively exploring new opportunities
stakeholder management
a firms strategy for recognizing and responding to the interests of all its salient stakeholders
perceptual acuity
the ability to sense what is coming before the fog clears
environmental scanning
surveillance of a firms external environment to predict environmental changes and detect changes already underway
environmental monitoring
tracks the evolution of environmental trends sequences of events or streams of activities
competitive intelligence
collecting and interpreting data on competitors, defining and understanding the industry and identifying competitors strengths and weaknesses
environmental forecasting
the development of plausible projections about the direction, scope, speed, and intensity of environmental change
scenario analysis
a more in-depth approach to forecasting that involves experts detailed assessments of societal trends, economics, politics, technology, or other dimensions of the external environment
