Professional Documents
Culture Documents
St t i
Strategic
Management
Chapter 1
Chapter1
Learning Objectives
LearningObjectives
Understandthebenefitsofstrategic
U d t d th b
fit f t t i
management
Explainhowglobalizationandenvironmental
sustainabilityinfluencestrategicmanagement
Understandthebasicmodelofstrategic
managementanditscomponents
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Learning Objectives
LearningObjectives
Identifysomecommontriggeringeventsthat
Id tif
ti
i
t th t
actasstimuliforstrategicchange
Understandstrategicdecisionmakingmodes
Usethestrategicauditasamethodof
analyzingcorporatefunctionsandactivities
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Phases
of Strategic Management
PhasesofStrategicManagement
Phase 1: Basic financial
Phase1:Basicfinancial
planning
Phase2:Forecastbased
Phase2:Forecast
planning
Phase3:Externallyoriented
strategicplanning
strategic planning
Phase4:Strategic
management
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Strategicplanningbecomesincreasingly
importantastheenvironmentbecomesmore
unstable.
bl
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Impact of Globalization
ImpactofGlobalization
Globalization
Gl b li ti
theintegratedinternationalizationofmarketsand
corporations
ti
haschangedthewaymoderncorporationsdo
business
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Impact of Innovation
ImpactofInnovation
Innovation
I
ti
describesnewproducts,services,methodsand
organizationalapproachesthatallowthebusiness
i ti
l
h th t ll th b i
toachieveextraordinaryreturns
Innovation istheimplementationofpotential
innovationsthattrulydrivesbusinessestobe
remarkable.
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Impact of Sustainability
ImpactofSustainability
Sustainability
S t i bilit
referstotheuseofbusinesspracticestomanage
th t i l b tt
thetriplebottomline
li
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Impact of Sustainability
ImpactofSustainability
Thetriplebottomlineinvolves:
Th
t i l b tt
li i l
1. themanagementoftraditionalprofit/loss;
2. themanagementofthecompanyssocial
responsibility;and
3. themanagementofitsenvironmental
responsibility.
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Institutiontheory
I tit ti th
organizationscanand
do adapt to changing
doadapttochanging
conditionsby
imitatingother
g
successful
organizations
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Organizationallearningisacriticalcomponentof
competitivenessinadynamicenvironment.
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Solvingproblemssystematically
Experimentingwithnewapproaches
Learningfromtheirownexperiencesandpast
historyaswellasfromtheexperiencesofothers
Transferringknowledgequicklyandefficiently
throughouttheorganization
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BasicElementsoftheStrategic
ManagementProcess
Figure 11
Figure11
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Environmental Variables
EnvironmentalVariables
Figure13
g
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Vision
describeswhattheorganizationwouldliketo
become
Objectives
theendresultsofplannedactivity
the end results of planned activity
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Hierarchy of Strategy
HierarchyofStrategy
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Feedback/Learningprocess
reviseorcorrectdecisionsbasedonperformance
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1-32
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ThreeCharacteristicsof
StrategicDecisions
Rare
Strategicdecisionsareunusualandtypicallyhave
noprecedenttofollow.
Consequential
Strategicdecisionscommitsubstantialresources
and demand a great deal of commitment from
anddemandagreatdealofcommitmentfrom
peopleatalllevels.
Directive
Strategicdecisionssetprecedentsforlesser
decisionsandfutureactionsthroughoutan
organization
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MintzbergsModesofStrategic
k
DecisionMaking
Entrepreneurial
t ep e eu a
Adaptive
dapt e
Planning
Logical
Logical
incrementalism
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Strategic DecisionMaking
StrategicDecision
MakingProcess
Process
1.
1
2.
3
3.
4.
5.
6.
7.
8
8.
Evaluatecurrentperformanceresults
Evaluate
current performance results
Reviewcorporategovernance
Scan and assess the external environment
Scanandassesstheexternalenvironment
Scanandassesstheinternalcorporate
environment
Analyzestrategic(SWOT)factors
Generate,evaluateandselectthebest
alternativestrategy
lt
ti
t t
Implementselectedstrategies
Evaluate implemented strategies
Evaluateimplementedstrategies
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Strategic DecisionMaking
StrategicDecision
MakingProcess
Process
Figure15
g
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Strategic DecisionMaking
StrategicDecision
MakingProcess
Process
Figure15
g
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TheStrategicAudit:AidtoStrategic
DecisionMaking
k
Strategicaudit
St t i
dit
providesachecklistofquestions,byareaorissue,
th t
thatenablesasystematicanalysistobemadeof
bl
t
ti
l i t b
d f
variouscorporatefunctionsandactivities
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