Thus the stakeholder management process may involve a series of trade offs that

Thus the stakeholder management process may involve a

This preview shows page 8 - 9 out of 9 pages.

Thus, the stakeholder management process may involve a series of trade-offs that is dependent on the extent to which the firm is dependent on the support of each affected stakeholder and the firm's ability to earn above- average returns. 7 Describe the work of strategic leaders. STRATEGIC LEADERS Who are strategic leaders? While it is dependent on the size of the organization, all organizations have a CEO or top manager and this individual is the primary organizational strategist in every organization. Small organizations may have a single strategist: the CEO or owner. Large organizations may have few or several top-level managers, executives or a top management team. All of these individuals are organizational strategists. What are the responsibilities of strategic leaders? Top managers play decisive roles in firms’ effor ts to achieve their desired strategic outcomes. As organizational strategists, top managers are responsible for deciding how resources will be developed or acquired, at what cost and how they will be used or allocated throughout the organization. Strategists also must consider the risks of actions under consideration, along with the firm’s vision and managers’ strategic orientations. Organizational strategists also are responsible for determining how the organization does business. This responsibility is reflected in the organizational culture , which refers to the complex set of ideologies, symbols, and core values shared throughout the firm and that influences the way it conducts business. The organization’s culture is the social energy that drives or fails to drive the organization. The Work of Effective Strategic Leaders While it seems simplistic, performing their role effectively requires strategists to work hard, perform thorough analyses of available information, be brutally honest, desire high performance, exercise common sense, think clearly, and ask questions and listen. In addition, strate gic leaders must be able to ―think seriously and deeply … about the purposes of the organization s they head or functions they perform, about the strategies, tactics, technologies, systems, and people necessary to attain these purposes and about the important questions that always need to be asked.‖ Additionally, effective strategic leaders work to set an ethical tone in their firms. Strategists work long hours and face ambiguous decision situations, but they also have opportunities to dream and act in concert with a compelling vision that motivates others in creating competitive advantage. Predicting Outcomes of Strategic Decisions: Profit Pools Top-level managers try to predict the outcomes of their strategic decisions before they are implemented, but this is sometimes very difficult to do. Those firms that do a better job of anticipating the outcomes of strategic moves will obviously be in a better position to succeed. One way to do this is by mapping out the profit pools of an industry. Profit pools are the total profits earned in an industry at all points along the value chain.
Image of page 8
Image of page 9

You've reached the end of your free preview.

Want to read all 9 pages?

  • Summer '12
  • JeanetteRamos-Alexander
  • Business, Management, Strategic Management and Strategic Competitiveness

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes