International Management Summary
International management summary
Section 3: Strategic management and corporate governance
Economic contributions to strategic management
What is Strategic Management about: * The systematic study of strategy in a business context * Strategy is about obtaining sustainable profitability
(while respecting standards of decency) * How is sustainable profitability achieved? * Doing things well (operational efficiency) but the same way as the others erodes profits > * Strategy is essentially about doing things differently (Porter
1996), choosing different sets of activities * What are the fundamental choices to be done? * Where to compete? > Corporate Strategy * How to compete? > Competitive Strategy
The field of strategic management has a normative (what firms should do) and descriptive (what firms actually do) part. The literature on strategic management may be further divided into contributions that focus on the process and the content of strategic management, although the content is hard to divide into normative and descriptive.
Strategic planning is the component of strategic management that aims at the formulation of a firm’s strategy. It is argued that the process of strategic planning should consist of a logical sequence of steps.
Origins of Strategic Management * Strategic management was born (in the ’60’s) as a tool to assist practitioners in the process of strategic planning, i.e., in the formulation of deliberate strategies * Today we acknoledge that strategies can be emergent as well as deliberate (Mintzberg and Quin 1991) * We also acknowledge that besides the content of strategy, the process of strategy formulation and implementation is important. * Economics has contributed mostly to issues of content and of deliberate strategy The bricks of strategy
As strategy is about choosing, in order to be different and profitable, the common elements in strategy are: * Goals *
Section 3: Strategic management and corporate governance
Economic contributions to strategic management
What is Strategic Management about: * The systematic study of strategy in a business context * Strategy is about obtaining sustainable profitability
(while respecting standards of decency) * How is sustainable profitability achieved? * Doing things well (operational efficiency) but the same way as the others erodes profits > * Strategy is essentially about doing things differently (Porter
1996), choosing different sets of activities * What are the fundamental choices to be done? * Where to compete? > Corporate Strategy * How to compete? > Competitive Strategy
The field of strategic management has a normative (what firms should do) and descriptive (what firms actually do) part. The literature on strategic management may be further divided into contributions that focus on the process and the content of strategic management, although the content is hard to divide into normative and descriptive.
Strategic planning is the component of strategic management that aims at the formulation of a firm’s strategy. It is argued that the process of strategic planning should consist of a logical sequence of steps.
Origins of Strategic Management * Strategic management was born (in the ’60’s) as a tool to assist practitioners in the process of strategic planning, i.e., in the formulation of deliberate strategies * Today we acknoledge that strategies can be emergent as well as deliberate (Mintzberg and Quin 1991) * We also acknowledge that besides the content of strategy, the process of strategy formulation and implementation is important. * Economics has contributed mostly to issues of content and of deliberate strategy The bricks of strategy
As strategy is about choosing, in order to be different and profitable, the common elements in strategy are: * Goals *