This document discusses strategic management and the strategic management process. It defines key concepts like corporate strategy, business strategy, and functional strategy. It also outlines the steps in the strategic management process as assessing the external and internal environment, formulating strategy, and executing strategy. Strengths, weaknesses, opportunities, and threats are identified as important to analyze. Different levels of strategy and types of competitive strategies are also defined.

1. Management by Richard L Daft
9th Edition

2.  Proverbs 16:3 “Commit to the LORD
whatever you do, and your plans will
succeed.”

3.  The plan of action that prescribes reserve
allocation and other activities for dealing with
the environment, achieving competitive
advantage and attaining organizational goals.
 Competitive advantage- what set the
organization apart from others and provides
it with a distinctive edge in the market place.

4.  To take the long term view and to take and to
see the big picture, including the
organization and the competitive
environment and, conside how they fit
together.

5.  Set of decisions and actions used to
formulate and execute strategies that will
provides competitively superior fit between
the organization and environment so as to
achieve organizational goals.

6.  Core competence- is something the
organization does especially well in
comparison to its competitors.
 Build synergy- when organizational parts
interact to produce a joint effect that is
greater than the sum of the parts acting alone
synergy occurs.
 Deliver Value- combination of benefits
received and cost paid.

7. Corporate level strategy(what business are we in?)
 Organization as a whole
 Business units and product lines that make up
the corporate entity.
Business level strategy (how do we compete?)
 Pertains to each business unit or product line.
 Concern amount of advertising,direction and
extent of research and development,product
changes etc.
Functional level strategy (how do we support the
business level strategy?)
 Pertains to the major functional department
within business units

8. Three Levels of Strategy in Organizations

9. The Strategic Management Process

10. Strategy formulation
 Include assessing the
external and internal
problems and
integrating the results
into goals and
strategy.
Strategy execution
 Use of managerial and
organizational tools to
direct resources
toward accomplishing
strategic results
 Administration and
implementation of the
strategic plan.

11.  Includes a search for strengths, weakness,
opportunities and threat that affect
organizational performance.

12.  Strengths – positive internal
characteristics that the organization can
exploit to achieve its strategic
performance goals.
 Weakness – internal characteristics that
might inhibit or restrict the organization
performance

13.  Threats – are the characteristics of the
external environment that may prevent the
organization on achieving its strategic
goals.
 Opportunities- are characteristics of the
external environment that have the
potential to help the organization achieve
or exceed its strategic goals.

14. Checklist for Analyzing Organizational
Strengths and Weakness

17.  The organization’s mix of strategic business units and
product lines that fit together in such a way as to provide the
corporation with synergy and competitive advantage.
 A division of the organization that has a unique business
mission, product line, competitors, and markets relative to
other SBUs in the same corporation.
 A concept developed by the Boston Consulting Group that
evaluates strategic business units with respect to the
dimensions of business growth rate and market share.

20.  Moving into a new business that is related to the
company’s existing business activities.
 A strategy of moving into new lines of business.
 Expanding into a totally new line of business.
 Expanding into businesses that either produce the supplies
needed to make products or that distribute and sell those
products.

24.  A type of competitive strategy with which the organization
aggressively seeks efficient facilities, cuts costs, and employs
tight cost controls to be more efficient than competitors.
 A type of competitive strategy with which the organization
seeks to distinguish its products or services from that of
competitors.
 A type of competitive strategy that emphasizes concentration
on a specific regional market or buyer group.

28.  managers focus on
◦ leveraging and developing more from the firm’s
existing assets, capabilities, and core competencies
◦ The idea is that getting growth out of existing
businesses is cheaper and more effective than
trying to buy it from outside

30.  Collaboration with other organizations
(competitors) is an important part of how
today’s successful companies enter new areas
of business

31. National Broadcasting
Corporation
Vivendi Universal

34.  Standardization of product design and
advertising strategies throughout the world
 Can help the organization reap efficiencies by
product standardization
 people everywhere want to buy the same
products and live the same way

36.  Modification of product design and
advertising strategies to suit the specific
needs of individual countries
 Some companies reject the idea of single
global market

38.  Combines global coordination to attain
efficiency with flexibility to meet specific
needs in various countries
 Global integration and national
responsiveness
 World market operations

44.  According to Porter (1996) companies must
be adapt and flexible when it comes to
responding to the drastic changes in the
business industry.
 Strategic positions are based on customer’s
requirements
 Strategy needs to be expand as a horizon and
should not be of a single, planning cycle