Chapter 8 Strategic Management

Chapter 8 Strategic Management - Chapter 8 Strategic...

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Chapter 8 Strategic Management ANNOTATED OUTLINE 1. INTRODUCTION Effective managers recognize the role that strategic management plays in their organization’s performance. Throughout this chapter, students discover that good strategies can lead to high organizational performance. 2. THE IMPORTANCE OF STRATEGIC MANAGEMENT Managers must carefully consider their organization’s internal and external environments as they develop strategic plans. They should have a systematic means of analyzing the environment, assessing their organization’s strengths and weaknesses, identifying opportunities that would give the organization a competitive advantage, and incorporating these findings into their planning. The value of thinking strategically has an important impact on organization performance. A.What Is Strategic Management? 1. Strategic management is what managers do to develop the organization’s strategies. 2. Strategic management involves all four of the basic management functions—planning, organizing, leading, and controlling. B. Why Is Strategic Management Important? 1. Strategic management has a significant impact on how well an organization performs. 2. In today’s business world, organizations of all types and sizes must manage constantly changing situations. 3. Today’s companies are composed of diverse divisions, units, functions, and work activities that must be coordinated. 4. Strategic management is involved in many of the decisions that managers make. 3. THE STRATEGIC MANAGEMENT PROCESS The strategic management process is a six-step process that encompasses strategic planning, implementation, and evaluation. (See Exhibit 8-1 and PowerPoint slide 8- 8 .) A. Step 1: Identifying the Organization’s Current Mission, Objectives, and Strategies 1. Every organization needs a mission, which is a statement of the purpose of an organization. The mission statement addresses the
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question: What is the organization’s reason for being in business? (See Exhibit 8-2 and PowerPoint slide 8-10 .) 2. The organization must identify its current objectives and strategies, as well. B. Step 2: External Analysis 1. Managers in every organization need to conduct an external analysis. Influential factors such as competition, pending legislation, and labor
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Chapter 8 Strategic Management - Chapter 8 Strategic...

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