1st & 2nd chapter of book strategic managmente and competitiveness Hitt , Ireland , hoskisson

1. Prof.Dr Yucel EROL
student Mohammed Abdulrahman
Strategic Management

2. Strategic Management is A strategy is an integrated and coordinated
set of commitments and actions designed to exploit core competencies
and gain a competitive advantage
Set of
commitments
coordinated
integrated

3. learning how to successfully compete in the globalized
world is one of the most significant challenges for firms competing in
the current century

4. competitive advantage

5. The strategic management process is the full set of commitments,
decisions, and actions required for a fi rm to achieve strategic
competitiveness and earn above-average returns

6. The Global Economy

7. Technology andTechnological Changes
Perpetual innovation is a term used to describe how rapidly and
consistently new,
information-intensive technologies replace older ones.The shorter
product life cycles resulting from these rapid diffusions of new
technologies place a competitive premium on being able to quickly
introduce new, innovative goods and services into the marketplace.

8. Strategic flexibility is a set of capabilities used to respond to various
demands and opportunities existing in a dynamic and uncertain
competitive environment
strategic flexibility involves coping with uncertainty and its accompanying
risks. Should try to develop strategic flexibility in all areas of their
operations. However, those working within firms to develop strategic
flexibility should understand that the task is not easy

9. The Resource-Based Model of Above-Average
Returns
The resource-based model assumes that each organization is a
collection of unique resources and capabilities.The uniqueness of its
resources and capabilities is the basis of a firm’s strategy and its ability
to earn above-average returns.82
Resources are inputs into a firm’s production process, such as capital
equipment, the skills of individual employees, patents, finances, and
talented managers. In general, a firm’s resources are classified into
three categories: physical, human, and organizational capital.

10. A capability is the capacity for a set of resources to perform a task
or an activity in an integrative manner. Capabilities evolve over
time and must be managed dynamically in pursuit of above-
average returns.84
Core competencies are resources and capabilities that serve as a
source of competitive advantage for a firm over its rivals. Core
competencies are often
visible in the form of organizational functions.
For example, we noted earlier that Best Buy is processing the
extensive amount of data it has about its customers to identify
private-label consumer electronic
products it can produce to meet customers’ needs.

11. Vision
is a picture of what the firm wants to be and, in broad terms, what it
wants to ultimately achieve.91Thus, a vision statement articulates
the ideal description of an organization and gives shape to its
intended future. In other words, a vision statement points the firm in
the direction of where it would eventually like to be in the years to
come.92Vision is “big picture” thinking with passion that helps
people feel what they are supposed to be doing in the
organization.93 People feel what they are to do when their firm’s
vision
is simple, positive, and emotional. However, an effective vision
stretches and challenges people as well.

12. Mission
The vision is the foundation for the firm’s mission. A mission
specifies the business or businesses in which the firm intends to
compete and the customers it intends to serve.94The firm’s mission
is more concrete than its vision

13. Segments of the General Environment

14. External Environmental Analysis

15. Industry Environment Analysis
An industry is a group of firms producing products that are close
substitutes. In the
course of competition, these firms influence one another.Typically,
industries include
a rich mixture of competitive strategies that companies use in pursuing
above-average
returns. In part, these strategies are chosen because of the influence of
an industry’s characteristics.