Strategic Management in Action: Final Analysis

Strategic Management in Action: Final Analysis

Group 2: Andrew Maale, Kristy Strong, John White

Why Strategic Management is important

Ch. 1

Strategic Management Organizations are constantly faced with changing situations

both internally( capabilities/resources) and externally( opportunities/threats) and are still expected to meet a certain level of output.

SM process1. Situation analysis- current situation2. Strategy Formulation- designing3. Strategy Implementation- action4. Strategy Evaluation- revisit and checkWho’s involved The board of directors The top management team Other strategic managers and organizational employees

Competitive Advantage Ch.2Resource Based View

Organizational resources as competitive advantage

Does it add value?

Is it rare?

Can firm exploit it?

Is it hard to duplicate/substitute

Drivers of the new business environmentInformation revolution Technology

Globalization

Critical success factors

Ability to embrace change

Creativity and innovation capabilities

Being a world class

organization

External analysis Ch.3 Scanning and evaluating an organizations

external environment Opportunities/threats Source of information/resources Environmental uncertainty (dynamic or stable)

Specific environments General environments

Internal Analysis Process of evaluating an organization’s

resources and capabilities. It is the only way to identify organization’s

strengths and weaknesses It is needed for making good strategy decisions.

Functional Strategies Goal-directed plans and actions of the

organization’s functional areas. The Product The People The Support Processes

Corporate Strategy Strategy concerned with the choices of what

business/businesses to be in and what to do with them. Single-business organizations Multiple-business organizations

The competitive strategy and various functional strategies are aligned with the overall direction that strategic managers have chosen for the organization and are being implemented.

Importance of Competitive Planning Competitive Environments are Inevitable Creating a Blue Ocean might not always be

cost effective Sometimes forming a competitive strategy is

more efficient Battle of Thermopylae

Battle of Thermopylae Best Possible use of Forces Pass at Thermopylae was ideally suited to the

Greek style of warfare Greeks competitive strategy allowed them to

take away the Persians quantitative advantage, to allow their strength to shine through, and their weaknesses covered up.

Strategic Management: Not Just for Business Management? Good to Great touches on this in Ch. 1 Education; Politics; Not For Profits Applying these concepts and measuring

concepts in terms other than economic. Education = Graduation Rates & Test Scores Politics = ??? NFPs = Consistency of Short Term & Long Term

Goals Achieved