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Chapter_1_Intro_to_SM_IBM_Case_Comparison

Chapter_1_Intro_to_SM_IBM_Case_Comparison - Slide 1.1 What...

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Slide 1.1 What is Strategic Management? What is Strategic Management? Case Study based on IBM’s disastrous Case Study based on IBM’s disastrous strategy in the 1980s and early 1990s strategy in the 1980s and early 1990s
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Slide 1.2 IBM in the 1980s and 1990s – 1 During this period, the world’s largest computer company IBM was in serious trouble IBM’s launch of its first personal computer eventually cost the company US$16 billion between 1991 and 1993 – why? Because it made a series of strategic mistakes….
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Slide 1.3 IBM in the 1980s and 1990s – 2 Some of IBM’s strategic mistakes are captured in the advertisement…. But before exploring IBM’s errors, it is useful to begin by exploring what we mean by the topic of strategy
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Slide 1.4 What is strategic management? What is strategic management? Recent research proposes the following definition of strategy: ‘The field of strategic management deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.’ Nag et al ( 2007 ) Strategic Management Journal , p 944 See Lynch, Chapter 1 for more definitions
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Slide 1.5 What is strategic management? What is strategic management? Strategic management is fundamentally about the broad general direction of organisations Both for private companies and for public sector organisations ‘The field of strategic management deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.’ Nag et al (2007) Strategic Management Journal , p 944
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Slide 1.6 IBM in the 1980s and 1990s – 3 During the 1980s, IBM gained market dominance of large computers – called computer ‘mainframes’ IBM then decided to move in a new broad strategic direction: into the growing market for ‘personal computers’ - PCs
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Slide 1.7 What is strategic management? What is strategic management? ‘Ownership’ goes beyond shareholders to other stakeholders in the organisation, such as employees and the general public ‘The field of strategic management deals with the major intended and emergent initiatives taken by general managers on behalf of owners , involving utilization of resources, to enhance the performance of firms in their external environments.’ Nag et al (2007) Strategic Management Journal , p 944 See Lynch, Chapters 1 and Chapter 6 for more on stakeholders
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Slide 1.8 IBM in the 1980s and 1990s – 4 IBM’s shareholders were chiefly in the USA but also with a wider geographic base Other IBM stakeholders included its senior managers, its employees around the world and its mainframe customers and suppliers
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Slide 1.9 What is strategic management?
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