Organizational Management Review

Chapter 1: Basic Concepts * Strategic Management: set of managerial decisions and actions that determine the long-run performance of a corporation. * Phases of Strategic Management: * Phase 1: Basic financial planning * Phase 2: Forecast-based planning * Phase 3: Externally oriented planning * Phase 4: Strategic Management * Benefits of Strategic Management: * Clearer sense of strategic vision for the firm * Sharper focus on what is strategically important * Improved understanding of a rapidly changing environment * Globalization: integrated internationalization of markets and corporations * Environmental Sustainability: the use of business practices to reduce a company’s impact upon the natural, physical environment. * The effects of climate change on industries and companies: * * Regulatory Risk * Supply Chain Risk * Product and Test Technology Risk * Litigation Risk * Reputation Risk * Physical Risk * Theories of organizational adaption: * Population Ecology: proposes that once an organization is successfully established in a particular environmental niche, unable to adapt to changing conditions. * Institution Theory: proposes that organizations can adapt to changing conditions by imitating other successful organizations. * Strategic Choice Perspective: proposes that not only do organizations adapt to a changing environment, but they also have the opportunity and power to reshape their environment. * Organizational Learning Theory: says that an organization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and its environment. * Learning Organization: an organization that is skilled at creating, acquiring, and transferring knowledge and modifying its behavior to reflect new knowledge and insights * Basic Model of Strategic Management: