Chapter 9 - Chapter 9: STRATEGIC MANAGEMENT CHAPTER 9...

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Chapter 9: STRATEGIC MANAGEMENT CHAPTER 9 OVERVIEW Strategies set critical directions for organizations and guide the allocation of their resources. This chapter focuses on strategic management and the role that strategy plays in achieving competitive advantage and organizational performance. The chapter begins by defining the key terms and concepts in strategic management and describing the strategic management process. Emphasis is placed on strategy formulation and strategy implementation. The importance of strategic management for gaining a competitive advantage is also discussed. Next, the chapter considers the importance of analyzing: (1) mission, values, and objectives; (2) organizational resources and capabilities; and (3) industry and environment. This is followed by a discussion of different levels and types of strategies that are used by organizations. Considerable attention is then devoted to four approaches to strategy formulation: Porter’s generic strategies framework, the portfolio planning approach, and incrementalism and emergent strategy. The chapter’s focus then shifts to the process of strategy implementation, with emphasis being placed on common strategic planning that hinder strategy implementation and the importance and roles of corporate governance and strategic leadership. CHAPTER 9 STUDY QUESTIONS SUMMARY Study Question 1: What are the foundations of strategic competitiveness? Competitive advantage is achieved by operating in ways that allow an organization to outperform its rivals; a competitive advantage is sustainable when it is difficult for competitors to imitate. A strategy is a comprehensive plan that sets long-term direction and guides resource allocation for sustainable competitive advantage. Strategic intent directs organizational resources and energies toward a compelling goal. Study Question 2: What is the strategic management process? Strategic management is the process of formulating and implementing strategies that achieve goals in a competitive environment. The strategic management process begins with analysis of mission, clarification of core values, and identification of objectives.
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A SWOT analysis systematically assesses organizational resources and capabilities and environmental opportunities and threats. Porter’s five forces model analyzes industry attractiveness in terms of competitors, new entrants, substitute products, and the bargaining powers of suppliers and buyers. Study Question 3: What types of strategies are used by organizations?
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Chapter 9 - Chapter 9: STRATEGIC MANAGEMENT CHAPTER 9...

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