This document summarizes key concepts from chapters 1-5 of a strategic management textbook. It covers the strategic management process, analyzing the external and internal environment, developing vision and mission, stakeholders, business-level strategies like cost leadership and differentiation, and competitive dynamics. The summaries highlight that firms use strategic management to achieve above-average returns by analyzing opportunities from the external environment and their internal resources and capabilities to formulate and implement strategies.
The document discusses several topics related to strategic management. It summarizes the resource-based model which focuses on a firm's internal resources and capabilities as the basis for competitive advantage. It also summarizes the industrial organization model which focuses on external industry forces. It then defines the three stages of the strategic management process as strategy formulation, implementation, and evaluation/control. Finally, it explains Porter's five forces model and how it affects industry profit potential.
Mid term (apple inc keeping the ‘i’ in innovation)Christian Tobing
This document is a case study on Apple Inc. and keeping innovation at the core of its business strategy. It discusses Apple's strategic management process, including analyzing external opportunities and threats, formulating strategies, and implementing actions to achieve competitiveness and above-average returns. The case examines how Apple continues innovating through new products and technologies to maintain its competitive advantage.
This document discusses the key steps in establishing an organization's strategic direction:
1. The first step is assessing the external environment using models like Porter's five forces and stakeholder analysis.
2. The next step is analyzing the internal environment by identifying strengths and weaknesses in each value chain activity.
3. Core competencies that distinguish the organization in the market are then identified.
4. The strategic intent, or long-term goals, are articulated and should build on existing competencies.
Using established business models as investigative tools and linking them together to enhance their analytical value is proposed in this paper as a method of progressing from strategic situation analysis to competitive advantage. Moreover, internal analyses that result in the identification of distinctive competencies and external investigations that uncover industry key success factors give strategists the means to develop strategies that may achieve competitive advantage.
This document discusses a firm's resources and how they can provide sustained competitive advantage. It defines three categories of resources: physical capital, human capital, and organizational capital. These resources must be valuable, rare, difficult to imitate, and lack substitutes to provide competitive advantage. The document provides examples of different types of resources that fall into each category and explains how resources can be used to implement strategies that exploit opportunities and neutralize threats in order to achieve sustained competitive advantage over competitors.
This document provides an overview of strategic management concepts including definitions, models, and frameworks. It defines strategic management as identifying and executing a company's strategic plan by matching capabilities with environmental demands. Several strategic management models and frameworks are described in detail, including Porter's 5 Forces model, the GE planning grid, McKinsey's 7S framework, and Boston Consulting Group's growth-share matrix. The levels of strategy and process of strategic management are also outlined.
This document outlines a strategic management model that includes determining a company's mission, developing a company profile, assessing the external environment, conducting strategic analysis and choice, implementing strategies, and controlling and evaluating performance. It discusses setting long-term objectives, grand strategies, and functional strategies aligned with the mission. The model emphasizes matching internal capabilities to external opportunities through analysis and strategic decisions at multiple levels of the organization.
This document provides an overview of strategic management. It begins by defining strategic management as the set of managerial decisions that determine an organization's long-term performance. It then describes the sequential phases of strategic planning as basic financial planning, forecast-based planning, externally-oriented planning (strategic planning), and strategic management. Finally, it lists some benefits of strategic management as providing a clearer strategic vision, sharper focus, and improved understanding of a rapidly changing environment.
The document discusses several topics related to strategic management. It summarizes the resource-based model which focuses on a firm's internal resources and capabilities as the basis for competitive advantage. It also summarizes the industrial organization model which focuses on external industry forces. It then defines the three stages of the strategic management process as strategy formulation, implementation, and evaluation/control. Finally, it explains Porter's five forces model and how it affects industry profit potential.
Mid term (apple inc keeping the ‘i’ in innovation)Christian Tobing
This document is a case study on Apple Inc. and keeping innovation at the core of its business strategy. It discusses Apple's strategic management process, including analyzing external opportunities and threats, formulating strategies, and implementing actions to achieve competitiveness and above-average returns. The case examines how Apple continues innovating through new products and technologies to maintain its competitive advantage.
This document discusses the key steps in establishing an organization's strategic direction:
1. The first step is assessing the external environment using models like Porter's five forces and stakeholder analysis.
2. The next step is analyzing the internal environment by identifying strengths and weaknesses in each value chain activity.
3. Core competencies that distinguish the organization in the market are then identified.
4. The strategic intent, or long-term goals, are articulated and should build on existing competencies.
Using established business models as investigative tools and linking them together to enhance their analytical value is proposed in this paper as a method of progressing from strategic situation analysis to competitive advantage. Moreover, internal analyses that result in the identification of distinctive competencies and external investigations that uncover industry key success factors give strategists the means to develop strategies that may achieve competitive advantage.
This document discusses a firm's resources and how they can provide sustained competitive advantage. It defines three categories of resources: physical capital, human capital, and organizational capital. These resources must be valuable, rare, difficult to imitate, and lack substitutes to provide competitive advantage. The document provides examples of different types of resources that fall into each category and explains how resources can be used to implement strategies that exploit opportunities and neutralize threats in order to achieve sustained competitive advantage over competitors.
This document provides an overview of strategic management concepts including definitions, models, and frameworks. It defines strategic management as identifying and executing a company's strategic plan by matching capabilities with environmental demands. Several strategic management models and frameworks are described in detail, including Porter's 5 Forces model, the GE planning grid, McKinsey's 7S framework, and Boston Consulting Group's growth-share matrix. The levels of strategy and process of strategic management are also outlined.
This document outlines a strategic management model that includes determining a company's mission, developing a company profile, assessing the external environment, conducting strategic analysis and choice, implementing strategies, and controlling and evaluating performance. It discusses setting long-term objectives, grand strategies, and functional strategies aligned with the mission. The model emphasizes matching internal capabilities to external opportunities through analysis and strategic decisions at multiple levels of the organization.
This document provides an overview of strategic management. It begins by defining strategic management as the set of managerial decisions that determine an organization's long-term performance. It then describes the sequential phases of strategic planning as basic financial planning, forecast-based planning, externally-oriented planning (strategic planning), and strategic management. Finally, it lists some benefits of strategic management as providing a clearer strategic vision, sharper focus, and improved understanding of a rapidly changing environment.
The document discusses various strategic analysis tools and techniques used to analyze a company's internal strengths and weaknesses as well as external opportunities and threats. It describes Porter's Five Forces framework for industry analysis, which examines the competitive forces that shape an industry and the attractiveness of the industry. It also discusses the SWOT analysis technique for assessing internal strengths and weaknesses and external opportunities and threats. Environmental scanning techniques like ETOP and QUEST are covered, which help identify external factors that may impact a company. The importance of strategic analysis for formulating business strategy is emphasized.
The document discusses various topics related to strategic management, including environmental scanning, structural analysis, competitive forces, organizational structure, and components of strategies.
It defines environmental scanning as systematically surveying external opportunities and threats that could influence future decisions. It also discusses conducting an internal scan to examine organizational strengths and weaknesses. Porter's Five Forces model is explained as a framework to analyze industry competition and profitability.
The document also discusses different types of organizational structures and how structure should align with strategy. Finally, it lists some key components of strategies as goals, policies, action plans, and feedback mechanisms.
The document discusses strategy and organization design. It describes strategic intent as directing an organization's energies toward a focused goal. It also discusses Porter's five forces model and Miles and Snow's strategy typology for formulating strategy. Organization design must support the competitive strategy. The document also discusses approaches for assessing organizational effectiveness, including goal-based, resource-based, internal process, and strategic constituents approaches.
The document discusses Porter's three generic strategies of cost leadership, differentiation, and focus. It describes how cost leadership can be achieved through high asset turnover, low operating costs, and supply chain control. Examples provided are Air Deccan and Tata Nano. Differentiation is achieved through unique product features that customers perceive as worth a premium price. Examples include Hero Honda and Apple. Focus strategy targets a niche market segment through either low costs or differentiation tailored to that segment's needs, like BMW targeting a luxury niche.
This document provides an overview of a strategic planning and policy analysis course. The 3 main points are:
1) The course aims to teach students how to analyze an organization's strengths, weaknesses, opportunities, and threats in order to formulate strategic plans and goals.
2) Students will learn how to think strategically about a company and its business position to gain a competitive advantage.
3) Strategic planning involves analyzing where a company currently stands, where it wants to be in the future, and how it will get there.
Strategic management and competitive dynamics Hamzah Rehail
This document provides an overview of strategic management and competitive dynamics. It discusses the strategic management process, which includes strategy formulation, implementation, and evaluation. Key aspects of strategy formulation are analyzing external opportunities/threats and internal strengths/weaknesses, developing long-term objectives and strategies. Porter's Five Forces model is also summarized. The document then discusses competitive dynamics, including analyzing competitors, drivers of competitive actions, strategic vs. tactical moves, first and second movers, and how organizational size, reputation, and market cycles impact competitive behaviors.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
This document outlines the course syllabus for BA932 Strategic Management. It covers 5 units: 1) Strategy and Process, 2) Competitive Advantage, 3) Strategies, 4) Strategy Implementation & Evaluation, and 5) Other Strategic Issues. Unit 1 discusses strategic concepts like vision, mission, objectives, and the strategy formation process. Unit 2 covers external environment analysis using Porter's five forces model and competitive changes. It also discusses internal analysis of resources, capabilities, and competitive advantage. Unit 3 looks at generic strategies and various levels of strategy. Unit 4 examines strategy implementation and evaluation. Unit 5 covers topics like technology, innovation, and internet strategies.
Environmental scanning in strategic management involves analyzing internal and external factors that impact an organization. The internal environment considers resources like human capital, technology, and corporate culture to identify strengths and weaknesses. The external environment analyzes factors like competition, market trends, and regulations to identify opportunities and threats. By understanding these internal and external factors, organizations can optimize resources, ensure growth and survival, and make productive long-term strategic decisions.
Strategy involves determining long-term goals and objectives and adopting plans to achieve them. There are three levels of strategy: corporate, business unit, and functional. Corporate strategy focuses on selecting business portfolios and coordinating them. Business unit strategy develops competitive advantages for specific goods/services. Functional strategy coordinates resources to efficiently execute higher-level strategies. Strategic management is the process of formulating, implementing, and evaluating cross-functional decisions to achieve objectives. It involves environmental scanning, strategy formulation, implementation through programs and budgets, and feedback.
The strategic management process has four main steps: 1) Environmental scanning to analyze internal/external factors, 2) Strategy formulation to determine corporate/business/functional strategies, 3) Strategy implementation by designing organizational structure and allocating resources, and 4) Strategy evaluation by assessing strategies and performance and taking corrective actions. It is a continuous process of appraising the business, industries, competitors, and reassessing strategies to achieve goals. Competitive advantages do not last forever as rivals can eventually duplicate a firm's resources and capabilities over time through developing their own unique strengths.
This document discusses tools for defining an organization's strategic direction. It outlines questions managers can use the tools to answer, such as identifying threats and opportunities, strengths and weaknesses, and sources of competitive advantage. The tools also help identify core competencies, value propositions, and necessary future resources and capabilities. Performing external and internal analysis is crucial for establishing a coherent innovation strategy that leverages the firm's position and provides future direction. This involves assessing factors like industry competition and identifying core competencies, dynamic capabilities, and strategic intent to adapt to changes.
This document provides an overview of the course curriculum for BA932 Strategic Management. It includes 5 units that cover key topics in strategic management:
Unit 1 covers strategy and process, including concepts of strategy, strategic management, goals, objectives, vision, mission and stakeholders.
Unit 2 focuses on competitive advantage, including Porter's five forces model, industry analysis, resources and capabilities.
Unit 3 discusses various strategic alternatives and types of business and corporate strategies.
Unit 4 is about implementing and evaluating strategies, including the implementation process, structure, control systems and strategic change.
Unit 5 covers other strategic issues like technology, innovation, non-profit strategies and new business models.
This document outlines the course units for a strategic management course. Unit 1 covers strategic concepts like vision, mission, objectives and goals. It also discusses stakeholders and corporate social responsibility. Unit 2 focuses on competitive advantage, including Porter's five forces model and analyzing resources and capabilities. Unit 3 looks at different business and corporate level strategies. Unit 4 is about implementing and evaluating strategies. Unit 5 discusses other strategic issues like technology, innovation and new business models.
This document provides an overview of corporate strategy and general management. It discusses:
1. The definition and importance of business policy and corporate strategy in achieving organizational goals and responding to the external environment.
2. The roles and responsibilities of general managers in supervising operations, planning, coordinating functions, and making personal contributions to organizational success.
3. Key aspects of formulating and implementing corporate strategy, including identifying opportunities/threats, assessing strengths/weaknesses, and aligning strategy with personal and societal values.
4. The importance of effective organizational structure, processes, leadership, and strategy implementation for accomplishing organizational purposes.
Strategic management involves establishing an organization's objectives and strategies to achieve long-term goals. It includes three main stages: strategy formulation, implementation, and evaluation. Strategy formulation involves developing strategic alternatives and selecting strategies to match strengths to opportunities. Implementation turns strategies into actions. Evaluation assesses strategy effectiveness and provides feedback for new planning. External opportunities and threats as well as internal strengths and weaknesses are analyzed to formulate competitive strategies.
The document discusses performing an internal audit to assess the strengths and weaknesses of a company's internal functions. It describes analyzing key areas like management, marketing, finance, production/operations, research and development, and organizational culture. The internal audit process involves gathering information from managers and employees across departments to understand how each function contributes to business objectives. Identifying distinctive competencies and improving on weaknesses can help companies develop effective strategies.
Designing and Sustaining Large-Scale Value-Centered Agile Ecosystems (powered...Alexey Krivitsky
Is Agile dead? It depends on what you mean by 'Agile'. If you mean that the organizations are not getting the promised benefits because they were focusing too much on the team-level agile "ways of working" instead of systemic global improvements -- then we are in agreement. It is a misunderstanding of Agility that led us down a dead-end. At Org Topologies, we see bright sparks -- the signs of the 'second wave of Agile' as we call it. The emphasis is shifting towards both in-team and inter-team collaboration. Away from false dichotomies. Both: team autonomy and shared broad product ownership are required to sustain true result-oriented organizational agility. Org Topologies is a package offering a visual language plus thinking tools required to communicate org development direction and can be used to help design and then sustain org change aiming at higher organizational archetypes.
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
The document discusses various strategic analysis tools and techniques used to analyze a company's internal strengths and weaknesses as well as external opportunities and threats. It describes Porter's Five Forces framework for industry analysis, which examines the competitive forces that shape an industry and the attractiveness of the industry. It also discusses the SWOT analysis technique for assessing internal strengths and weaknesses and external opportunities and threats. Environmental scanning techniques like ETOP and QUEST are covered, which help identify external factors that may impact a company. The importance of strategic analysis for formulating business strategy is emphasized.
The document discusses various topics related to strategic management, including environmental scanning, structural analysis, competitive forces, organizational structure, and components of strategies.
It defines environmental scanning as systematically surveying external opportunities and threats that could influence future decisions. It also discusses conducting an internal scan to examine organizational strengths and weaknesses. Porter's Five Forces model is explained as a framework to analyze industry competition and profitability.
The document also discusses different types of organizational structures and how structure should align with strategy. Finally, it lists some key components of strategies as goals, policies, action plans, and feedback mechanisms.
The document discusses strategy and organization design. It describes strategic intent as directing an organization's energies toward a focused goal. It also discusses Porter's five forces model and Miles and Snow's strategy typology for formulating strategy. Organization design must support the competitive strategy. The document also discusses approaches for assessing organizational effectiveness, including goal-based, resource-based, internal process, and strategic constituents approaches.
The document discusses Porter's three generic strategies of cost leadership, differentiation, and focus. It describes how cost leadership can be achieved through high asset turnover, low operating costs, and supply chain control. Examples provided are Air Deccan and Tata Nano. Differentiation is achieved through unique product features that customers perceive as worth a premium price. Examples include Hero Honda and Apple. Focus strategy targets a niche market segment through either low costs or differentiation tailored to that segment's needs, like BMW targeting a luxury niche.
This document provides an overview of a strategic planning and policy analysis course. The 3 main points are:
1) The course aims to teach students how to analyze an organization's strengths, weaknesses, opportunities, and threats in order to formulate strategic plans and goals.
2) Students will learn how to think strategically about a company and its business position to gain a competitive advantage.
3) Strategic planning involves analyzing where a company currently stands, where it wants to be in the future, and how it will get there.
Strategic management and competitive dynamics Hamzah Rehail
This document provides an overview of strategic management and competitive dynamics. It discusses the strategic management process, which includes strategy formulation, implementation, and evaluation. Key aspects of strategy formulation are analyzing external opportunities/threats and internal strengths/weaknesses, developing long-term objectives and strategies. Porter's Five Forces model is also summarized. The document then discusses competitive dynamics, including analyzing competitors, drivers of competitive actions, strategic vs. tactical moves, first and second movers, and how organizational size, reputation, and market cycles impact competitive behaviors.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
This document outlines the course syllabus for BA932 Strategic Management. It covers 5 units: 1) Strategy and Process, 2) Competitive Advantage, 3) Strategies, 4) Strategy Implementation & Evaluation, and 5) Other Strategic Issues. Unit 1 discusses strategic concepts like vision, mission, objectives, and the strategy formation process. Unit 2 covers external environment analysis using Porter's five forces model and competitive changes. It also discusses internal analysis of resources, capabilities, and competitive advantage. Unit 3 looks at generic strategies and various levels of strategy. Unit 4 examines strategy implementation and evaluation. Unit 5 covers topics like technology, innovation, and internet strategies.
Environmental scanning in strategic management involves analyzing internal and external factors that impact an organization. The internal environment considers resources like human capital, technology, and corporate culture to identify strengths and weaknesses. The external environment analyzes factors like competition, market trends, and regulations to identify opportunities and threats. By understanding these internal and external factors, organizations can optimize resources, ensure growth and survival, and make productive long-term strategic decisions.
Strategy involves determining long-term goals and objectives and adopting plans to achieve them. There are three levels of strategy: corporate, business unit, and functional. Corporate strategy focuses on selecting business portfolios and coordinating them. Business unit strategy develops competitive advantages for specific goods/services. Functional strategy coordinates resources to efficiently execute higher-level strategies. Strategic management is the process of formulating, implementing, and evaluating cross-functional decisions to achieve objectives. It involves environmental scanning, strategy formulation, implementation through programs and budgets, and feedback.
The strategic management process has four main steps: 1) Environmental scanning to analyze internal/external factors, 2) Strategy formulation to determine corporate/business/functional strategies, 3) Strategy implementation by designing organizational structure and allocating resources, and 4) Strategy evaluation by assessing strategies and performance and taking corrective actions. It is a continuous process of appraising the business, industries, competitors, and reassessing strategies to achieve goals. Competitive advantages do not last forever as rivals can eventually duplicate a firm's resources and capabilities over time through developing their own unique strengths.
This document discusses tools for defining an organization's strategic direction. It outlines questions managers can use the tools to answer, such as identifying threats and opportunities, strengths and weaknesses, and sources of competitive advantage. The tools also help identify core competencies, value propositions, and necessary future resources and capabilities. Performing external and internal analysis is crucial for establishing a coherent innovation strategy that leverages the firm's position and provides future direction. This involves assessing factors like industry competition and identifying core competencies, dynamic capabilities, and strategic intent to adapt to changes.
This document provides an overview of the course curriculum for BA932 Strategic Management. It includes 5 units that cover key topics in strategic management:
Unit 1 covers strategy and process, including concepts of strategy, strategic management, goals, objectives, vision, mission and stakeholders.
Unit 2 focuses on competitive advantage, including Porter's five forces model, industry analysis, resources and capabilities.
Unit 3 discusses various strategic alternatives and types of business and corporate strategies.
Unit 4 is about implementing and evaluating strategies, including the implementation process, structure, control systems and strategic change.
Unit 5 covers other strategic issues like technology, innovation, non-profit strategies and new business models.
This document outlines the course units for a strategic management course. Unit 1 covers strategic concepts like vision, mission, objectives and goals. It also discusses stakeholders and corporate social responsibility. Unit 2 focuses on competitive advantage, including Porter's five forces model and analyzing resources and capabilities. Unit 3 looks at different business and corporate level strategies. Unit 4 is about implementing and evaluating strategies. Unit 5 discusses other strategic issues like technology, innovation and new business models.
This document provides an overview of corporate strategy and general management. It discusses:
1. The definition and importance of business policy and corporate strategy in achieving organizational goals and responding to the external environment.
2. The roles and responsibilities of general managers in supervising operations, planning, coordinating functions, and making personal contributions to organizational success.
3. Key aspects of formulating and implementing corporate strategy, including identifying opportunities/threats, assessing strengths/weaknesses, and aligning strategy with personal and societal values.
4. The importance of effective organizational structure, processes, leadership, and strategy implementation for accomplishing organizational purposes.
Strategic management involves establishing an organization's objectives and strategies to achieve long-term goals. It includes three main stages: strategy formulation, implementation, and evaluation. Strategy formulation involves developing strategic alternatives and selecting strategies to match strengths to opportunities. Implementation turns strategies into actions. Evaluation assesses strategy effectiveness and provides feedback for new planning. External opportunities and threats as well as internal strengths and weaknesses are analyzed to formulate competitive strategies.
The document discusses performing an internal audit to assess the strengths and weaknesses of a company's internal functions. It describes analyzing key areas like management, marketing, finance, production/operations, research and development, and organizational culture. The internal audit process involves gathering information from managers and employees across departments to understand how each function contributes to business objectives. Identifying distinctive competencies and improving on weaknesses can help companies develop effective strategies.
Designing and Sustaining Large-Scale Value-Centered Agile Ecosystems (powered...Alexey Krivitsky
Is Agile dead? It depends on what you mean by 'Agile'. If you mean that the organizations are not getting the promised benefits because they were focusing too much on the team-level agile "ways of working" instead of systemic global improvements -- then we are in agreement. It is a misunderstanding of Agility that led us down a dead-end. At Org Topologies, we see bright sparks -- the signs of the 'second wave of Agile' as we call it. The emphasis is shifting towards both in-team and inter-team collaboration. Away from false dichotomies. Both: team autonomy and shared broad product ownership are required to sustain true result-oriented organizational agility. Org Topologies is a package offering a visual language plus thinking tools required to communicate org development direction and can be used to help design and then sustain org change aiming at higher organizational archetypes.
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
A team is a group of individuals, all working together for a common purpose. This Ppt derives a detail information on team building process and ats type with effective example by Tuckmans Model. it also describes about team issues and effective team work. Unclear Roles and Responsibilities of teams as well as individuals.
Colby Hobson: Residential Construction Leader Building a Solid Reputation Thr...dsnow9802
Colby Hobson stands out as a dynamic leader in the residential construction industry. With a solid reputation built on his exceptional communication and presentation skills, Colby has proven himself to be an excellent team player, fostering a collaborative and efficient work environment.
Originally presented at XP2024 Bolzano
While agile has entered the post-mainstream age, possibly losing its mojo along the way, the rise of remote working is dealing a more severe blow than its industrialization.
In this talk we'll have a look to the cumulative effect of the constraints of a remote working environment and of the common countermeasures.
Ganpati Kumar Choudhary Indian Ethos PPT.pptx, The Dilemma of Green Energy Corporation
Green Energy Corporation, a leading renewable energy company, faces a dilemma: balancing profitability and sustainability. Pressure to scale rapidly has led to ethical concerns, as the company's commitment to sustainable practices is tested by the need to satisfy shareholders and maintain a competitive edge.
12 steps to transform your organization into the agile org you deservePierre E. NEIS
During an organizational transformation, the shift is from the previous state to an improved one. In the realm of agility, I emphasize the significance of identifying polarities. This approach helps establish a clear understanding of your objectives. I have outlined 12 incremental actions to delineate your organizational strategy.
Impact of Effective Performance Appraisal Systems on Employee Motivation and ...Dr. Nazrul Islam
Healthy economic development requires properly managing the banking industry of any
country. Along with state-owned banks, private banks play a critical role in the country's economy.
Managers in all types of banks now confront the same challenge: how to get the utmost output from
their employees. Therefore, Performance appraisal appears to be inevitable since it set the
standard for comparing actual performance to established objectives and recommending practical
solutions that help the organization achieve sustainable growth. Therefore, the purpose of this
research is to determine the effect of performance appraisal on employee motivation and retention.
1. Chapter 1: Summary
■ Firms use the strategic management process to achieve strategic competitiveness and earn
above-average returns. Firms analyse the external environment and their internal
organization, then formulate and implement a strategy to achieve a desired level of
performance (A-S-P). Performance is reflected by the firm’s level of strategic
competitiveness and the extent to which it earns above-average returns. Strategic
competitiveness is achieved when a firm develops and implements a value-creating strategy.
Above-average returns (in excess of what investors expect to earn from other investments
with similar levels of risk) provide the foundation needed to simultaneously satisfy all of a
firm’s stakeholders.
■ The fundamental nature of competition is different in the current competitive landscape.
As a result, those making strategic decisions must adopt a different mind-set, one that allows
them to learn how to compete in highly turbulent and chaotic environments that produce a
great deal of uncertainty. The globalization of industries and their markets along with rapid
and significant technological changes are the two primary factors contributing to the
turbulence of the competitive landscape.
■ Firms use two major models to help develop their vision and mission when choosing one
or more strategies in pursuit of strategic competitiveness and above-average returns. The
core assumption of the I/O model is that the firm’s external environment has a large
influence on the choice of strategies more than do the firm’s internal resources, capabilities,
and core competencies. Thus, the I/O model is used to understand the effects an industry’s
characteristics can have on a firm when deciding what strategy or strategies to use in
competing against rivals. The logic supporting the I/O model suggests that aboveaverage
returns are earned when the firm locates an attractive industry or part of an industry and
successfully implements the strategy dictated by that industry’s characteristics. The core
assumption of the resource-based model is that the firm’s unique resources, capabilities, and
core competencies have more of an influence on selecting and using strategies than does the
firm’s external environment. Above-average returns are earned when the firm uses its
valuable, rare, costly-toimitate, and non-substitutable resources and capabilities to compete
against its rivals in one or more industries. Evidence indicates that both models yield insights
that are linked to successfully selecting and using strategies. Thus, firms want to use their
unique resources, capabilities, and core competencies as the foundation to engage in one or
more strategies that allow them to effectively compete against rivals in their industry.
■ Vision and mission are formed to guide the selection of strategies based on the information
from the analyses of the firm’s internal organization and external environment. Vision is a
picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve.
Flowing from the vision, the mission specifies the business or businesses in which the firm
intends to compete and the customers it intends to serve. Vision and mission provide
direction to the firm and signal important descriptive information to stakeholders.
2. ■ Stakeholders are those who can affect, and are affected by, a firm’s performance. Because
a firm is dependent on the continuing support of stakeholders (shareholders, customers,
suppliers, employees, host communities, etc.), they have enforceable claims on the
company’s performance. When earning above-average returns, a firm generally has the
resources it needs to satisfy the interests of all stakeholders. However, when earning only
average returns, the firm must carefully manage its stakeholders in order to retain their
support. A firm earning below-average returns must minimize the amount of support it loses
from unsatisfied stakeholders.
■ Strategic leaders are people located in different areas and levels of the firm using the
strategic management process to help the firm achieve its vision and fulfil its mission. In
general, CEOs are responsible for making certain that their firms properly use the strategic
management process. The effectiveness of the strategic management process is increased
when it is grounded in ethical intentions and behaviours. The strategic leader’s work
demands decision trade-offs, often among attractive alternatives. It is important for all
strategic leaders, especially the CEO and other members of the top-management team, to
conduct thorough analyses of conditions facing the firm, be brutally and consistently honest,
and work jointly to select and implement the correct strategies.
Chapter 2: Summary
■ The firm’s external environment is challenging and complex. Because of its effect on
performance, the firm must develop the skills required to identify opportunities and threats
that are a part of its external environment.
■ The external environment has three major parts: 1. The general environment (segments and
elements in the broader society that affect industries and the firms competing in them) 2. The
industry environment (factors that influence a firm, its competitive actions and responses,
and the industry’s profitability potential) 3. The competitor environment (in which the firm
analyzes each major competitor’s future objectives, current strategies, assumptions, and
capabilities).
■ Scanning, monitoring, forecasting, and assessing are the four parts of the external
environmental analysis process. Effectively using this process helps the firm in its efforts to
identify opportunities and threats.
■ The general environment has seven segments: demographic, economic, political/legal,
sociocultural, technological, global, and sustainable physical. For each segment, the firm has
to determine the strategic relevance of environmental changes and trends.
■ Compared with the general environment, the industry environment has a more direct effect
on the firm’s competitive actions and responses. The five forces model of competition
includes the threat of entry, the power of suppliers, the power of buyers, product substitutes,
and the intensity of rivalry among competitors. By studying these forces, the firm finds a
3. position in an industry where it can influence the forces in its favor or where it can buffer
itself from the power of the forces to achieve strategic competitiveness and earn above-
average returns.
■ Industries are populated with different strategic groups. A strategic group is a collection of
firms following similar strategies along similar dimensions. Competitive rivalry is greater
within a strategic group than between strategic groups.
■ Competitor analysis informs the firm about the future objectives, current strategies,
assumptions, and capabilities of the companies with which it competes directly. A thorough
competitor analysis examines complementors that support forming and implementing rivals’
strategies.
■ Different techniques are used to create competitor intelligence: the set of data, information,
and knowledge that allow the firm to better understand its competitors and thereby predict
their likely competitive actions and responses. Firms absolutely should use only legal and
ethical practices to gather intelligence. The Internet enhances firms’ ability to gather insights
about competitors and their strategic intentions.
Chapter 3: Summary
■ In the current competitive landscape, the most effective organizations recognize that
strategic competitiveness and above-average returns result only when core competencies
(identified by studying the firm’s internal organization) are matched with opportunities
(determined by studying the firm’s external environment).
■ No competitive advantage lasts forever. Over time, rivals use their own unique resources,
capabilities, and core competencies to form different value-creating propositions that
duplicate the focal firm’s ability to create value for customers. Because competitive
advantages are not permanently sustainable, firms must exploit their current advantages
while simultaneously using their resources and capabilities to form new advantages that can
lead to future competitive success.
■ Effectively managing core competencies requires careful analysis of the firm’s resources
(inputs to the production process) and capabilities (resources that have been purposely
integrated to achieve a specific task or set of tasks). The knowledge the firm’s human capital
possesses is among the most significant of an organization’s capabilities and ultimately
provides the base for most competitive advantages. The firm must create an organizational
culture that allows people to integrate their individual knowledge with that held by others so
that, collectively, the firm has a significant amount of value-creating organizational
knowledge.
■ Capabilities are a more likely source of core competence and subsequently of competitive
advantages than are individual resources. How a firm nurtures and supports its capabilities so
4. they can become core competencies is less visible to rivals, making efforts to understand and
imitate the focal firm’s capabilities difficult.
■ Only when a capability is valuable, rare, costly to imitate, and no substitutable is it a core
competence and a source of competitive advantage. Over time, core competencies must be
supported, but they cannot be allowed to become core rigidities. Core competencies are a
source of competitive advantage only when they allow the firm to create value by exploiting
opportunities in its external environment. When this is no longer possible, the company
shifts its attention to forming other capabilities that satisfy the four criteria of sustainable
competitive advantage.
■ Value chain analysis is used to identify and evaluate the competitive potential of resources
and capabilities. By studying their skills relative to those associated with value chain
activities and support functions, firms can understand their cost structure and identify the
activities through which they are able to create value.
■ When the firm cannot create value in either a value chain activity or a support function,
outsourcing is considered. Used commonly in the global economy, outsourcing is the
purchase of a value-creating activity from an external supplier. The firm should outsource
only to companies possessing a competitive advantage in terms of the particular value chain
activity or support function under consideration. In addition, the firm must continuously
verify that it is not outsourcing activities through which it could create value.
Chapter 4: Summary
■ A business-level strategy is an integrated and coordinated set of commitments and actions
the firm uses to gain a competitive advantage by exploiting core competencies in specific
product markets. Five business-level strategies (cost leadership, differentiation, focused cost
leadership, focused differentiation, and integrated cost leadership/differentiation) are
examined in the chapter.
■ Customers are the foundation of successful business-level strategies. When considering
customers, a firm simultaneously examines three issues: who, what, and how. These issues,
respectively, refer to the customer groups to be served, the needs those customers have that
the firm seeks to satisfy, and the core competencies the firm will use to satisfy customers’
needs. Increasing segmentation of markets throughout the global economy creates
opportunities for firms to identify more distinctive customer needs that they can serve with
one of the business-level strategies.
■ Firms seeking competitive advantage through the cost leadership strategy produce no-
frills, standardized products for an industry’s typical customer. However, these low-cost
products must be offered with competitive levels of differentiation. Above-average returns
are earned when firms continuously emphasize efficiency such that their costs are lower than
5. those of their competitors, while providing customers with products that have acceptable
levels of differentiated features.
■ Competitive risks associated with the cost leadership strategy include (1) a loss of
competitive advantage to newer technologies, (2) a failure to detect changes in customers’
needs, and (3) the ability of competitors to imitate the cost leader’s competitive advantage
through their own distinct strategic actions.
■ Through the differentiation strategy, firms provide customers with products that have
different (and valued) features. Differentiated products must be sold at a cost that customers
believe is competitive relative to the product’s features as compared to the cost/feature
combinations available from competitors’ goods. Because of their distinctiveness,
differentiated goods or services are sold at a premium price. Products can be differentiated
on any dimension that some customer group values. Firms using this strategy seek to
differentiate their products from competitors’ goods or services on as many dimensions as
possible. The less similarity to competitors’ products, the more buffered a firm is from
competition with its rivals.
■ Risks associated with the differentiation strategy include:
a customer group’s decision that the unique features provided by the differentiated
product over the cost leader’s goods or services are no longer worth a premium price,
the inability of a differentiated product to create the type of value for which customers
are willing to pay a premium price,
the ability of competitors to provide customers with products that have features similar
to those of the differentiated product, but at a lower cost, and
the threat of counterfeiting, whereby firms produce a cheap imitation of a
differentiated good or service.
■ Through the cost leadership and the differentiated focus strategies, firms serve the needs of
a narrow market segment (e.g., a buyer group, product segment, or geographic area). This
strategy is successful when firms have the core competencies required to provide value to a
specialized market segment that exceeds the value available from firms serving customers
across the total market (industry).
■ The competitive risks of focus strategies include:
a competitor’s ability to use its core competencies to “out focus” the focuser by
serving an even more narrowly defined market segment
decisions by industry-wide competitors to focus on a customer group’s specialized
needs, and
a reduction in differences of the needs between customers in a narrow market
segment and the industry-wide market.
6. ■ Firms using the integrated cost leadership/differentiation strategy strive to provide
customers with relatively low-cost products that also have valued differentiated features.
Flexibility is required for firms to learn how to use primary value-chain activities and
support functions in ways that allow them to produce differentiated products at relatively low
costs. This flexibility is facilitated by flexible manufacturing systems and improvements and
interconnectedness in information systems within and between firms (buyers and suppliers).
The primary risk of this strategy is that a firm might produce products that do not offer
sufficient value in terms of either low cost or differentiation. In such cases, the company
becomes “stuck in the middle.” Firms stuck in the middle compete at a disadvantage and are
unable to earn more than average returns.
Chapter 5: Summary
■ Competitors are firms competing in the same market, offering similar products, and
targeting similar customers. Competitive rivalry is the ongoing set of competitive actions and
responses occurring between competitors as they compete against each other for an
advantageous market position. The outcomes of competitive rivalry influence the firm’s
ability to sustain its competitive advantages as well as the level (average, below average, or
above average) of its financial returns.
■ Competitive behaviour is the set of competitive actions and responses an individual firm
takes while engaged in competitive rivalry. Competitive dynamics is the set of actions and
responses taken by all firms that are competitors within a particular market.
■ Firms study competitive rivalry in order to predict the competitive actions and responses
each of their competitors are likely to take. Competitive actions are either strategic or tactical
in nature. The firm takes competitive actions to defend or build its competitive advantages or
to improve its market position. Competitive responses are taken to counter the effects of a
competitor’s competitive action. A strategic action or a strategic response requires a
significant commitment of organizational resources, is difficult to successfully implement,
and is difficult to reverse. In contrast, a tactical action or a tactical response requires fewer
organizational resources and is easier to implement and reverse. For example, for an airline
company, entering major new markets is an example of a strategic action or a strategic
response; changing its prices in a particular market is an example of a tactical action or a
tactical response.
■ A competitor analysis is the first step the firm takes to be able to predict its competitors’
actions and responses. In Chapter 2, we discussed what firms do to understand competitors.
This discussion was extended in this chapter to describe what the firm does to predict
competitors’ market-based actions. Thus, understanding precedes prediction. Market
commonality (the number of markets with which competitors are jointly involved and their
importance to each) and resource similarity (how comparable competitors’ resources are in
terms of type and amount) are studied to complete a competitor analysis. In general, the
7. greater the market commonality and resource similarity, the more firms acknowledge that
they are direct competitors.
■ Market commonality and resource similarity shape the firm’s awareness (the degree to
which it and its competitors understand their mutual interdependence), motivation (the firm’s
incentive to attack or respond), and ability (the quality of the resources available to the firm
to attack and respond). Having knowledge of these characteristics of a competitor increases
the quality of the firm’s predictions about that competitor’s actions and responses.
■ In addition to market commonality, resource similarity, awareness, motivation, and ability,
three more specific factors affect the likelihood a competitor will take competitive actions.
The first of these is first-mover benefits. First movers, those taking an initial competitive
action, often gain loyal customers and earn above-average returns until competitors can
successfully respond to their action. Not all firms can be first movers because they may lack
the awareness, motivation, or ability required to engage in this type of competitive
behaviour. Moreover, some firms prefer to be a second mover (the firm responding to the
first mover’s action). One reason for this is that second movers, especially those acting
quickly, often can successfully compete against the first mover. By evaluating the first
mover’s product, customers’ reactions to it, and the responses of other competitors to the
first mover, the second mover may be able to avoid the early entrant’s mistakes and find
ways to improve upon the value created for customers by the first mover’s goods or services.
Late movers (those that respond a long time after the original action was taken) commonly
are lower performers and are much less competitive.
■ Organizational size tends to reduce the variety of competitive actions that large firms
launch, while it increases the variety of actions undertaken by smaller competitors. Ideally, a
firm prefers to initiate a large number of diverse actions when engaged in competitive
rivalry. Another factor, quality, is a base denominator for competing successfully in the
global economy. It is a necessary prerequisite to achieving competitive parity. However, it is
a necessary but insufficient condition for establishing an advantage.
■ The type of action (strategic or tactical) the firm took, the competitor’s reputation for the
nature of its competitor behaviour, and that competitor’s dependence on the market in which
the action was taken are analysed to predict a competitor’s response to the firm’s action. In
general, the number of tactical responses taken exceeds the number of strategic responses.
Competitors respond more frequently to the actions taken by the firm with a reputation for
predictable and understandable competitive behaviour, especially if that firm is a market
leader. In general, the firm can predict that when its competitor is highly dependent on its
revenue and profitability in the market in which the firm took a competitive action, that
competitor is likely to launch a strong response. However, firms that are more diversified
across markets are less likely to respond to a particular action that affects only one of the
markets in which they compete.
8. ■ In slow-cycle markets, competitive advantages generally can be maintained for at least a
period of time, and competitive dynamics often include actions and responses intended to
protect, maintain, and extend the firm’s proprietary advantages. In fast-cycle markets,
competition is substantial as firms concentrate on developing a series of temporary
competitive advantages. This emphasis is necessary because firms’ advantages in fast-cycle
markets aren’t proprietary and, as such, are subject to rapid and relatively inexpensive
imitation. Standard-cycle markets have a level of competition between that in slow-cycle and
fast-cycle markets; firms often (but not always) are moderately shielded from competition in
these markets as they use capabilities that produce competitive advantages that are
moderately sustainable. Competitors in standard-cycle markets serve mass markets and try to
develop economies of scale to enhance their profitability. Innovation is vital to competitive
success in each of the three types of markets. Companies should recognize that the set of
competitive actions and responses taken by all firms differs by type of market.