Strategy formulation and Implementation

Strategy formulation and Implementation - Strategy...

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Unformatted text preview: Strategy Formulation and Implementation Chapter 8 What is Strategic Management? Strategic management is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. Managers ask questions as What changes and trends are occurring in the competitive environment? Who our customers? What products or services should we offer? How can we offer those products and services most efficiently? Grand Strategy Grand Strategy is the general plan of major action by which a firm intends to achieve its long-term goals .Grand strategies fall into three general categories: growth, stability , and retrenchment . Growth can be promoted internally by investing in expansion or externally by acquiring additional business divisions. Stability means that the organization wants to remain the same size or grow slowly and in a controlled fashion .Retrenchment means that the organization goes through a period of forced decline. Global Strategies In the international arena, companies face a strategic dilemma between global integration and national responsiveness. Organizations must decide whether they want each global affiliate to act autonomously or whether activities should be standardized and centralized across countries. The three global strategies are shown in Exhibit 8.1 Global Strategies Globalization strategy The theory is that people everywhere want to buy the same products and live the same way/ drink Coca- Cola, wear Levi blue jeans,etc/. When an organization chooses a strategy of globalization it means that its product design and advertising strategies are standardized throughout the world /Colgate-Palmolive company sells Colgate toothpaste in more than 40 countries/. Global Strategies Multidomestic Strategy...
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Strategy formulation and Implementation - Strategy...

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