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  • 1. Strategic Management in Action 1 Introducing the Concepts
  • 2. Learning Objectives 1. Discuss why strategic management is important. 2. Define strategy and strategic management. 3. Describe the strategic management process. 4. Describe the three levels of organizational strategies. 5. Explain the historical evolution of strategic management. 6. Rebut misconceptions about strategy and strategic management. 7. Explain who’s involved with strategic management and their role in managing strategically.
  • 3. W HY I S S TRATEGIC M ANAGEMENT I MPORTANT ?
    • Strategic Management
    Gives everyone a role Makes a difference in performance levels Provides systematic approach to uncertainties Coordinates and focuses employees
  • 4. W HAT I S S TRATEGIC M ANAGEMENT ? Strategy vs. Strategic Management
  • 5. T he B asics of S trategy & S trategic M anagement
    • Definition of Strategy
    A series of goal-directed decisions and actions matching an organization's skills and resources with the opportunities and threats in its environment
  • 6. T he B asics of S trategy & S trategic M anagement
    • Strategy Involves:
    Organization’s goals Goal-directed action Related decisions and actions Internal strengths External opportunities and threats
  • 7. T he B asics of S trategy & S trategic M anagement
    • Definition of Strategic Management
    • Decisions and actions where organizations
    Analyze current situation Develop appropriate strategies Put strategies into action Evaluate, modify, or change strategies
  • 8. T he B asics of S trategy & S trategic M anagement
    • Strategic Management entails:
    Basic managerial functions Planning Organizing Implementing Controlling
  • 9.
    • Basic
    • Activities
    • of
    • Strategic
    • Management
    • Figure 1-1
    T he B asics of S trategy & S trategic M anagement Strategy Formulation Strategy Implementation Strategy Evaluation
  • 10. T he B asics of S trategy & S trategic M anagement
    • Strategic Management
    • “ Big picture” view of organization
    • influenced by its external environment
    Four aspects that set apart Strategic Management Interdisciplinary External focus Internal focus Future direction
  • 11. The Strategic Management Process
    • Strategic Management in Action Figure 1-2
    Analyzing Current Situation Deciding on Strategies Putting Strategies in Action Evaluating and Changing Strategies Situation Analysis Strategy Formulation Strategy Implementation Strategy Evaluation Chapter 2 Chapter 3 Chapter 4 External Analysis Internal Analysis Organizational Context Chapter 5 Chapter 6 Chapter 7 Functional Competitive Corporate
  • 12. The Strategic Management Process
    • Situation Analysis
    Scanning and evaluating context External environment Organizational environment
  • 13. The Strategic Management Process
    • Strategy Formulation
    • Three organizational levels
    Functional strategies Competitive strategies Corporate strategies
  • 14. The Strategic Management Process
    • Strategy Implementation
    Process of putting strategies into action Strategy Evaluation Process of evaluating : How the strategy has been implemented Outcomes of the strategy
  • 15. The Strategic Management Process
    • Continuing Process of
    • Strategic Management in Action
    • Ongoing and continuous cycle of
    Strategy formulation Strategy implementation Strategy evaluation
  • 16. Looking at Strategic Management’s Past
    • Strategy’s Military Roots
    Battlefield strategies to gain an edge Exploit weak spots Academic Origins of Strategic Management Economic theory Early organizational studies
  • 17. Looking at Strategic Management’s Past
    • Strategic Planning & Strategic Management Emerge
    Before 1960 Not an area of study During the 1960s Strategy and Structure Corporate Strategy Business Policy: Text and Cases During the 1970s and 1980s Becomes distinct academic field Research focus on strategic decisions vs. performance
  • 18. Misconceptions About Strategy and Strategic Management
    • Misconceptions
    Strategy and strategic planning are dead Strategy is strictly for top management Strategy is about planning Strategy is stable and constant Strategic management outlines ultimate destination & route
  • 19. W HO’S I NVOLVED WITH S TRATEGIC M ANAGEMENT ?
    • The Role of the Board of Directors
    Elected representatives of the company’s stockholders Legally obligated to represent and protect stockholder’s interest The Role of Top Management Responsible for every decision and action of every employee Providing effective leadership Other Strategic Managers and Organizational Employees Implement— put the strategies into action and monitor performance Evaluate—do the actual evaluations and take necessary actions Open book management
  • 20. The Role of the Board of Directors Table 1-2 Typical Board Responsibilities • • • • • • • • • • Review and approve strategic goals and plans Review and approve organization's financial standards and policies Ensure integrity of organization's financial controls and reporting systems Approve an organizational philosophy Monitor organizational performance and regularly review performance results Select, evaluate, and compensate top-level managers Develop management succession plans Review and approve capital allocations and expenditures Monitor relations with shareholders and other key stakeholders Other responsibilities may be assigned depending on the unique culture and needs of the organization
  • 21. The Role of Top Management
    • Top Management
    CEO Chief Executive Officer COO Chief Operating Officer CFO Chief Financial Officer CIO Chief Information Officer
  • 22. The Role of Top Management
    • Effective
    • Strategic
    • Leadership
    • Involves
    • Figure 1-5
    Effective Strategic Leadership Exploiting and Maintaining Core Competencies Developing Human Capital Creating and Sustaining Strong Organizational Culture Emphasizing Ethical Decisions and Practices Establishing Appropriately Balanced Controls Determining Organizational Purpose or Vision
  • 23. Chapter One ? Questions

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