MGT - WHAT IS STRATEGY AND THE STRATEGIC MANAGEMENT...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: WHAT IS STRATEGY AND THE STRATEGIC MANAGEMENT PROCESS? Chapter 1 1- 1- 2 Strategy Strategy (as defined in the text): a firms theory about how to gain competitive advantage Competitive advantage??? Whats Apples theory of competitive advantage? A good strategy is one that generates a competitive advantage for the firm 1- 1- 3 Strategy Another, more generic, definition of strategy : a course of action for achieving a goal Theory of competitive advantage, which is central to textbook definition of strategy, is/should be key driver of strategy as defined here, i.e., what course of action is selected for the firm 1- 1- 4 The Strategic Management Process Strategic management process : a sequential set of analyses and choices that can increase the likelihood that a firm will choose a good strategy, i.e., a strategy that will generate a competitive advantage Mission Objectives External Analysis Internal Analysis Strategic Choice Strategy Implementation Competitive Advantage The Strategic Management Process Diagram of Key Elements of Strategic Management Process 1- 1- 6 The Strategic Management Process Mission : an organizations long-term purpose Defines what an organization aspires to be (and what it hopes to avoid being) Cf. vision 1- 1- 7 The Strategic Management Process Missions: Good, Bad, and Indifferent Indifferent: Good reasons to think that missions may not help a firm do better than others Common elements Lack of impact on member action Some missions probably have positive effects Visionary firms where mission has broad influence Built to Last (Collins and Porras) Missions can sometimes have negative effects See Ben & Jerrys??? 1- 1- 8 The Strategic Management Process Objectives : specific measureable targets a firm can use to evaluate the extent to which it is realizing its mission See example in text (3M) regarding how objectives can be effectively linked to mission 3Ms mission focuses on finding innovative products and earning high returns for shareholders Objectives map well on to mission 1- 1- 9 The Strategic Management Process High-quality objectives: Tightly connected to key elements of mission Relatively easy to measure Relatively easy to track over time Low-quality objectives Not connected to key elements of mission Not easy (or impossible) to measure Not easy to track over time 1- 1- 10 10 The Strategic Management Process External Analysis : involves identification of critical threats and opportunities in the environment E.g., competitive environment Also involves considering how environment might evolve in the...
View Full Document

Page1 / 30

MGT - WHAT IS STRATEGY AND THE STRATEGIC MANAGEMENT...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online