Strategic Management Summary
Strategic Management
Summary of textbook – fourth edition
Chapter 1
What is Strategic Management?
Romantic view Situations in which the leader is the key force determining the organization’s of leadership success – or lack thereof.
External view Situations in which external forces – where the leader has limited influence - of leadership determine the organization’s success.
Strategic The analyses, decisions, and actions an organization undertakes in order to
Management create und sustain competitive advantages.
The four key attributes of Strategic Management are:
1. It is directed toward overall organizational goals and objectives 2. It includes multiple stakeholders in decision making 3. It requires incorporating both short-term and long-term perspectives 4. It involves the recognition of trade-offs between effectiveness and efficiency
Stakeholders Individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large.
Stakeholder Group Nature of claim Stockholders Dividends, capital appreciation Employees Wages, benefits, safe working environment Suppliers Payment on time, assurance of continued relationship Creditors Payment of interest, repayment of principal Customers Value, warranties Government Taxes, compliance with regulations
Communities Good citizenship behavior such as charities, employment, not polluting the environment
Effectiveness Tailoring actions to the need of an organization rather than wasting effort, or “doing the right thing”.
Efficiency Performing actions at a low cost relative to a benchmark, or “doing things right.”
Operational Performing similar activities better than rivals.
Effectiveness
Ambidexterity The challenge mangers face of both aligning resources to take advantage of existing product markets as well as
Summary of textbook – fourth edition
Chapter 1
What is Strategic Management?
Romantic view Situations in which the leader is the key force determining the organization’s of leadership success – or lack thereof.
External view Situations in which external forces – where the leader has limited influence - of leadership determine the organization’s success.
Strategic The analyses, decisions, and actions an organization undertakes in order to
Management create und sustain competitive advantages.
The four key attributes of Strategic Management are:
1. It is directed toward overall organizational goals and objectives 2. It includes multiple stakeholders in decision making 3. It requires incorporating both short-term and long-term perspectives 4. It involves the recognition of trade-offs between effectiveness and efficiency
Stakeholders Individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large.
Stakeholder Group Nature of claim Stockholders Dividends, capital appreciation Employees Wages, benefits, safe working environment Suppliers Payment on time, assurance of continued relationship Creditors Payment of interest, repayment of principal Customers Value, warranties Government Taxes, compliance with regulations
Communities Good citizenship behavior such as charities, employment, not polluting the environment
Effectiveness Tailoring actions to the need of an organization rather than wasting effort, or “doing the right thing”.
Efficiency Performing actions at a low cost relative to a benchmark, or “doing things right.”
Operational Performing similar activities better than rivals.
Effectiveness
Ambidexterity The challenge mangers face of both aligning resources to take advantage of existing product markets as well as