Strategic Management Outline Chapter 1
Chapter One:
The Nature and Value of Strategic management: * Managers must manager internal activities along with responding to problems posed by the immediate and remote external environments * Immediate external environment: competitors, suppliers, increasingly scarce resources, gov agencies, regulations, shifts in customer preference * Remote external: economic, social, political, technology, * Must be anticipated monitored, assessed and incorporated into decision making * Strategic management- the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. * There are 9 critical tasks: * Formulate the mission * Analyze internal conditions and capabilities * Asses external environment * Analyze options—match resources with external environment * Identify most desirable options (evaluate in light of the mission) * Select long term objectives and grand strategies to achieve the most desired options * Develop annual objectives and aligned short term strategies * Implement: resource allocation, match tasks, people, structures.. etc * Evaluate success * Planning directing organizing controlling * Strategy= large-scale, future oriented plans for interacting with the competitive environment to achieve company objectives; ‘Game Plan’ * Dimensions of Strategic Decisions: * Strategic Issues Require Top Management Decisions- imply it over arches several areas of operations * Broad implications * Strategic Issued Require Large Amount of the Firm’s Resources- they commit the firm to actions over an extended period, therefore they require substantial resources. * Strategic Issues Often Affect the Firm’s Long Term Prosperity- commit the firm for typically 5 years, but the impact lasts much longer. Once committed to a
The Nature and Value of Strategic management: * Managers must manager internal activities along with responding to problems posed by the immediate and remote external environments * Immediate external environment: competitors, suppliers, increasingly scarce resources, gov agencies, regulations, shifts in customer preference * Remote external: economic, social, political, technology, * Must be anticipated monitored, assessed and incorporated into decision making * Strategic management- the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. * There are 9 critical tasks: * Formulate the mission * Analyze internal conditions and capabilities * Asses external environment * Analyze options—match resources with external environment * Identify most desirable options (evaluate in light of the mission) * Select long term objectives and grand strategies to achieve the most desired options * Develop annual objectives and aligned short term strategies * Implement: resource allocation, match tasks, people, structures.. etc * Evaluate success * Planning directing organizing controlling * Strategy= large-scale, future oriented plans for interacting with the competitive environment to achieve company objectives; ‘Game Plan’ * Dimensions of Strategic Decisions: * Strategic Issues Require Top Management Decisions- imply it over arches several areas of operations * Broad implications * Strategic Issued Require Large Amount of the Firm’s Resources- they commit the firm to actions over an extended period, therefore they require substantial resources. * Strategic Issues Often Affect the Firm’s Long Term Prosperity- commit the firm for typically 5 years, but the impact lasts much longer. Once committed to a