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1、PARTIII1.ECTURENOTESCHAPTER1THENATUREOFSTRATEGICMANAGEMENTCHAPTEROUT1.INE WhatisStrategicManagement? KeyTermsinStrategicManagement TheStrategic-ManagementModel BenefitsofStrategicManagenwnt WhySomeFirmsDoNoStrategicPlanning PitfallsinStrategicPlanning GuidelinesforEffectiveStrategicManagement Compar
2、ingBusinessandMilitaryStrategy TheCohesionCase:McDonaIdsCH.PTEROBJECTIVESAfterstudyingthischapter,youshouldbeabletodothefollowing:1. Describethesira(egic-nanagementprocess.2. Explaintheneedforintegratinganalysisandintuitioninstrategicmanage11wnt.3. Defineandgiveexamplesofkeytermsinstrategicmanagemen
3、t.4. Discussthenatureofstrategyformulation,implementation,andevaluationactivities.5. Descril)ethebenefitsofgoodstrategicmanagement.6. DiscusstherelevanceofSunTu,sHieAnofWar(ostrategicmanagement.7. DiscusshowaIlnnmayachievesustainedCOmPCliIiVeadvantage.CHAPTEROVERVIEWChapterIPrOvideSanoverviewofSirat
4、cgicmanagement.Aprac(ical,inlegralivemnnulating,implementing,andevaluatingcixsj-functionalelexisionsthatenableanorganizationtoachieveitsobjectives.1. hete11nstrategicmanagementisusedsynonymouslywithstrategicplanning.2. Thepurposeofstrategicmanagementis10exploitandcreatenewanddifferentOpporiuniiiesIb
5、rtomorrowwhilelong-rangeplanningtriestooptimizefortomorrowthetrendsoftoday.B. StagesofStrategicManagement1. Thestrategic-managemeniprocessconsistsofthreestages.a. Strategyformulationincludesdevelopingavisionandmission,identifyinganorganizationsexternalopportunitiesandthreats,determininginternalstren
6、gthsandweaknesses,establishinglong-termobjectives,generatingaliemaivestrategies,atichoosingpalicularstrategiestopursue.b. Strategyimplementationrequiresafr1110establishannualobjectives,devisepolicies,motivateemployees,andallocateresourcessothatformulatedstrategicscanbeexecuted;strategyimplementation
7、includesdevelopingastrategy-supportiveculture,creatinganeffectiveorganizationalstructure,redirectingmarketingefforts,preparingbudgets,developingandutilizinginlo11nalionsystems,andlinkingemployeeCOinpensalion(oorganizationalperformance.c. Strategyevaluationisthefinalstageinstrategicmanagement.Manager
8、sdesperatelyneedtoknowwhenparticularstrategiesarenotworkingwell;strategyevaluationistheprimarymeans(Orobtainingthisinlb11nalion.VTN(VisitTheNet):Thewebsitem11,.spsu.eduplanassesssrategic.himprovidesanarrativeonstrategyformulationandinlemenationatSouthernPolytechnicStateUniversity,2. Ihreefundamental
9、strategyevaluationactivitiesareprovidedbelow:a.Reviewingexternalandinernalfactorsthatarethebasesforcurrentstrategiesb.Measuringperformancec.Takingcorrectiveaction3Strategyformulation,implementation,andevaluationactivitiesoccuratthreehierarchicallevelsinalargeorganization:coorate.divisional,andfuncti
10、onal.Smallerbusinessesmayonlyhavethecorporateandfunctionallevels.C. IntegralingInluilionandAnalysis1. Thestrategic-managementprocesscanbedescribedasanobjective,logical,systematicapproachformakingmajordecisionsinanorganization.Itattemptstoorganizequalitativeandquantitativeinformationinawaythatallowse
11、Oectivedecisionstobemadeunderconditionsofunceriain(y.2. Mostpeoplerecognizethatintuitionisessentialtomakinggoodst11Hcgicmanagementdecisions.Intuitionisparticularlyusefulformakingdecisionsinsituationsofgreatuncertaintyorlittleprecedent.D. AdaptingtoChange1. Thestrategic-managementprocessisbasedontheb
12、eliefthatorganizationsshouldConiinuallyiwnitorinternalandexternaleventsandtrendssothattimelychangescanbemadeasneeded.Therateandmagnitudeofchangesthataffectorganizationsareincreasingdramatically.2. Byeliminatingboundariesandspeedingtheowofinformahon,c-commerceandglobalizationarctransformingbusinessandsociety.3. Theneedtoadapttochangeleadsorganizationstokeystrategic-managementquestions,suchas,oWhatkindofbusinessshouldwebecome?”Areweintherightfield?”tiShouldwereshapeourbusiness?”t*Vhatnewcompetitorsareenteringourindustry?TeachingTip:Strategy&B
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