21download_doc-14.php - S trategic management Process I...

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Strategic management Process I. What is strategy a. The traditional approach i. Focused on planning ii. The idea that strategy involves rational planning iii. An organization chooses its goals, identifies the courses of action (or strategies) that best enables it to fulfills its goals, and allocates resources accordingly b. A new approach i. The planning approach incorrectly assumes that an organization’s strategy is always the outcome of rational planning 1. Ignores the fact that strategies can emerge from within an organization without any formal plan ii. Even in the absence of intent, strategies can emerge from the grassroots of an org iii. Strategy is more than what a company intends or plans to do 1. It is also what it actually does iv. Strategy: a pattern in a stream of decisions or actions 1. The pattern is a product of whatever intended strategies (planned) are actually realized and of any emergent (unplanned) strategies a. Emergent strategies are often successful and may be more appropriate than intended strategies v. Successful strategies can emerge within an organization without prior planning often is response to unforeseen circumstances vi. The strategies of most organizations are probably a combo of the intended and the emergent II. A model of the strategic management process a. Intro
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i. Strategic management process can be broken into 5 different components 1. Selection of the corporate mission and major corporate goals 2. Analysis of the organization’s external competitive environment to identify opportunities and threats 3. Analysis of the org’s internal operating environment to identify the org’s strengths and weaknesses 4. The selection of strategies that build on the org’s strengths and correct its weaknesses in order to take advantage of external opportunities and counter external threats 5. Strategy implementation ii. Strategy formulation vs. strategy implementation 1. Formulation a. The task of analyzing the org’s external and internal environment and then selection an appropriate strategy 2. Implementation a. Involves designing appropriate organizational structures and control systems to put the organizations’ chosen strategy into action b. Mission and major goals i. The mission and major goals of an org provide the context within which
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This note was uploaded on 04/18/2011 for the course BUS 370 taught by Professor Camp during the Fall '09 term at Indiana.

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21download_doc-14.php - S trategic management Process I...

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