Strategic objectives for our vision and mission: S.M.A.R.T.
1. Specific This provides a clear message as to what needs to be accomplished.
2. Measurable There must be at least one indicator (or yardstick) that measures progress
against fulfilling the o
I. Creating the environmentally aware organization: To create an organization that is aware
of the environment, we need to manage our environment by:
1. Environment Scanning
2. Environment Monitoring
3. Competitive Intelligence
*Know the Difference of The
Competitive Advantage A firms resources and capabilities that enable it to overcome the
competitive forces in its industry.
Operational Effectiveness Performing similar activities better than rivals.
Analysis: Analyzing companys vision (goals)
Chapter 1 Creating Competitive Advantages
1. What is exciting about strategic management and why should we study it?
There were 500 companies in the 1950s and only 71 are left.
Struggling firms can become stars, while high flyers can become earthbound
Vision Organizational goal(s) that evoke(s) powerful and compelling mental images.
a. The walk must match the talk If the organization is a low cost leader then they
should not develop an enormous marketing campaign.
Learning from others mistakes
Sears former CEO Arthur Martinez said: Todays peacocks are tomorrows feather duster
We dont want to be feather dusters; we always want to be peacocks.
Nokia: 1990s: the worlds largest mobile manufacturing. Their competitive
The Strategic Management Process
What is the Intended Strategy? Analyzed the firm and wanted to do something. It is a strategy
in which organizational decisions are determined only by analysis.
What is the Realized Strategy? Something happ
What is the External Control View of Leadership? Situations in which external forces
where the leader has limited influence determine the organizations success. Other things affect
the business, even if leadership is good.
o Example: Hurricane Katrina in
Corporate Governance The relationship among various participants in determining the
direction and performance of corporations. The primary participants are (1) the shareholders, (2)
the management (led by the chief executive officer, CEO), and (
Social responsibility, social innovation and environmental sustainability:
Social Responsibility The expectation that businesses or individuals will strive to improve the
overall welfare of society.
Shared Value Policies and operating practices that enhan