Summary of textbook – fourth edition
What is Strategic Management?
Situations in which the leader is the key force determining the organization’s of leadership
success – or lack thereof.
Situations in which external forces – where the leader has limited influence - of leadership
determine the organization’s success.
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
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.
Nature of claim
Dividends, capital appreciation
Wages, benefits, safe working environment
Payment on time, assurance of continued relationship
Payment of interest, repayment of principal
Taxes, compliance with regulations
Good citizenship behavior such as charities, employment, not polluting the environment
Tailoring actions to the need of an organization rather than wasting effort, or “doing the right thing”.
Performing actions at a low cost relative to a benchmark, or “doing things right.”
Performing similar activities better than rivals. Effectiveness
The challenge mangers face of both aligning resources to take advantage of existing product markets as well as...
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