Chapter Pp
Chapter 1
The Foundations of Strategic Management
KNOWLEDGE OBJECTIVES
1. Define strategic management. 2. Discuss why firms use the industrial organization model to analyze their external environment. 3. Discuss why firms use the resource-based view of the firm model to analyze their internal environment. 4. Define stakeholders and understand their importance. 5. Explain the work of strategic leaders.
CHAPTER OUTLINE
Focusing on Strategy: Are You a Left-Handed Guitar Player? If So, We Have a Product Just for You!
WHAT IS STRATEGIC MANAGEMENT? The Three Parts of the Strategic Management Process
THE INDUSTRIAL ORGANIZATION MODEL
Understanding Strategy, Learning from Success: Wal-Mart’s Grocery Business: Can the Momentum and Success Be Maintained?
Understanding Strategy, Learning from Failure: “CompUSA Is Closing Its Stores,” the Headlines Read. What Happened?
THE RESOURCE-BASED VIEW OF THE FIRM MODEL
STAKEHOLDERS
STRATEGIC LEADERS
HOW THE BOOK IS ORGANIZED
SUMMARY
KEY TERMS
DISCUSSION QUESTIONS
Lecture notes: Chapter Introduction: This chapter lays the groundwork with concepts and terminology that will be used throughout the book. A firm grasp of these concepts will give them a good foundation for understanding and using the material in the rest of the text.
The purpose of the text is to explain the three parts of strategic management: vision, analysis, and strategy. It is crucial for the success of the organization for all members to understand and implement the vision and strategy of the firm. Ideally, strategy is not isolated at the CEO level, but extends to all levels of employees. Nor is strategy confined to Fortune 500 firms. All firms need effective business strategy.
Focusing on Strategy
WHAT IS STRATEGIC MANAGEMENT?
This section applies to Knowledge Objective 1.
• The ongoing process of strategic management forms a vision,
The Foundations of Strategic Management
KNOWLEDGE OBJECTIVES
1. Define strategic management. 2. Discuss why firms use the industrial organization model to analyze their external environment. 3. Discuss why firms use the resource-based view of the firm model to analyze their internal environment. 4. Define stakeholders and understand their importance. 5. Explain the work of strategic leaders.
CHAPTER OUTLINE
Focusing on Strategy: Are You a Left-Handed Guitar Player? If So, We Have a Product Just for You!
WHAT IS STRATEGIC MANAGEMENT? The Three Parts of the Strategic Management Process
THE INDUSTRIAL ORGANIZATION MODEL
Understanding Strategy, Learning from Success: Wal-Mart’s Grocery Business: Can the Momentum and Success Be Maintained?
Understanding Strategy, Learning from Failure: “CompUSA Is Closing Its Stores,” the Headlines Read. What Happened?
THE RESOURCE-BASED VIEW OF THE FIRM MODEL
STAKEHOLDERS
STRATEGIC LEADERS
HOW THE BOOK IS ORGANIZED
SUMMARY
KEY TERMS
DISCUSSION QUESTIONS
Lecture notes: Chapter Introduction: This chapter lays the groundwork with concepts and terminology that will be used throughout the book. A firm grasp of these concepts will give them a good foundation for understanding and using the material in the rest of the text.
The purpose of the text is to explain the three parts of strategic management: vision, analysis, and strategy. It is crucial for the success of the organization for all members to understand and implement the vision and strategy of the firm. Ideally, strategy is not isolated at the CEO level, but extends to all levels of employees. Nor is strategy confined to Fortune 500 firms. All firms need effective business strategy.
Focusing on Strategy
WHAT IS STRATEGIC MANAGEMENT?
This section applies to Knowledge Objective 1.
• The ongoing process of strategic management forms a vision,