3830-exam_1_study_guide_S_2008-McGuire[1] - Chapter 1:...

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Chapter 1: Definition of Strategic Management o Consists of all analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages o Analysis of strategic goals along with the analysis of the internal and external environment of the organization o Leaders must make strategic decisions about what industries to compete in and should we compete in those industries o Actions should be taken to implement these strategies o Study of why some firms outperform others o Keys attributes of strategic management o Directs the organization toward overall goals and objectives o Includes multiple stakeholders in decision making o Needs to incorporate short-term and long-term perspectives o Recognizes trade-offs between efficiency and effectiveness Strategic Management process o Strategic analysis (the starting point) o The advanced work that must be done in order to effectively formulate and implement strategies o Clear goals and objectives permit effective allocation of resources o Hierarchy of goals o Strategic formulation o Several levels Business-level: the issue of how to compete in given business environments to attain competitive advantage o Corporate level What businesses to compare How businesses can be managed to achieve synergy o International strategy Expand to include foreign markets o Digital business strategy Internet and wireless connections changing businesses o Strategic implementation o Involves ensuring that a firm has proper strategic controls and organizational designs o Ensuring that the organization is committed to excellence and ethical behavior, promotes learning and continuous improvement, and acts entrepreneurially in creating and taking advantage of new opportunities Strategic control and corp. governance Creating effective organization designs Creating and learning organization and an ethical organization Fostering corp. entrepreneurship Creating new ventures
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Stakeholders Those who influence firm actions, or are influenced by them 5 groups o Customers o Employees and managers o Suppliers (of goods, services, and capital) o The community at large o owners Firm must rely on stakeholder support and resources from for long-term survival and performance o Importance/influence depends upon Power Immediacy Legitimacy Must meet some of these aspects (most of the time all 3) Stakeholder analysis is an (implicit or explicit) aspect of external analysis and strategy formulation Zero sum o The gain of one group of stakeholders is a lose for another o Conflict between workers and management Stakeholder symbiosis o Stakeholders are dependent upon each other for success and well-being Ethical/social responsibility of business o Balance the support of the stakeholders Organizational implications of strategic management o Everyone in the company must work together to make a company run smoothly
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This note was uploaded on 08/25/2008 for the course MGT 3830 taught by Professor Unknown during the Spring '06 term at LSU.

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3830-exam_1_study_guide_S_2008-McGuire[1] - Chapter 1:...

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