Strategic Management
STRATEGIC MANAGEMENT & BUSINESS POLICY
12TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Strategic Management: a set of managerial decisions and actions that determines the long-run performance of a corporation.
Includes:
• • • • Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control
Pearson Education © 2010
1-2
Phases of Strategic Management:
• • • • Phase Phase Phase Phase 1: 2: 3: 4: Basic financial planning Forecast-based planning Externally oriented strategic planning Strategic management
Pearson Education © 2010
1-3
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
Pearson Education © 2010
1-4
Additional Benefits of Strategic Management:
• Improved organizational performance • Achieves a match between the organization’s environment and its strategy, structure and processes • Important in unstable environments • Strategic thinking • Organizational learning
Pearson Education © 2010
1-5
Impact of Globalization: Globalization: the integration and internationalization of markets and corporations
Pearson Education © 2010
1-6
Impact of Environmental Sustainability: Environmental Sustainability: the use of business practices to reduce a company’s impact on the natural, physical environment
Pearson Education © 2010
1-7
Impact of Environmental Sustainability
Risks of Climate Change include:
• Regulatory risk • Supply chain risk • Product and technology risk
• Litigation risk • Reputational risk • Physical risk
Pearson Education © 2010
1-8
Population ecology: established organizations are unable to adapt to change
Institution theory: organizations adapt by imitating successful organizations
Pearson Education © 2010
1-9
Strategic choice perspective: organizations adapt to
12TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Strategic Management: a set of managerial decisions and actions that determines the long-run performance of a corporation.
Includes:
• • • • Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control
Pearson Education © 2010
1-2
Phases of Strategic Management:
• • • • Phase Phase Phase Phase 1: 2: 3: 4: Basic financial planning Forecast-based planning Externally oriented strategic planning Strategic management
Pearson Education © 2010
1-3
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
Pearson Education © 2010
1-4
Additional Benefits of Strategic Management:
• Improved organizational performance • Achieves a match between the organization’s environment and its strategy, structure and processes • Important in unstable environments • Strategic thinking • Organizational learning
Pearson Education © 2010
1-5
Impact of Globalization: Globalization: the integration and internationalization of markets and corporations
Pearson Education © 2010
1-6
Impact of Environmental Sustainability: Environmental Sustainability: the use of business practices to reduce a company’s impact on the natural, physical environment
Pearson Education © 2010
1-7
Impact of Environmental Sustainability
Risks of Climate Change include:
• Regulatory risk • Supply chain risk • Product and technology risk
• Litigation risk • Reputational risk • Physical risk
Pearson Education © 2010
1-8
Population ecology: established organizations are unable to adapt to change
Institution theory: organizations adapt by imitating successful organizations
Pearson Education © 2010
1-9
Strategic choice perspective: organizations adapt to