Strategic Managment

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Chapter 1
What is Strategic Management? - A process for situation analysis and strategy formulation, implementation and evaluation. Using an example, explain the strategic management process. – A process is a series of interrelated and continuous steps leading to an outcome. * Situational Analysis- Required before deciding upon a strategic direction it involves scanning and evaluating. * Strategy Formulation- developing and choosing appropriate strategies(guided by the analysis) and incudes 3 main types of strategies * Functional- or operational strategies are goal oriented plans and actions of the functional areas of the organization. * Competitive- or business strategies are goal directed plans and actions concerned with how an organization competes in a specific business or industry * Corporate- goal directed plans and actions concerned with what business or businesses a firm wants to be in and what to do with those businesses * Strategy Implementation- it is not enough to formulate great strategies, they must also be put into action * Strategy Evaluation- involves evaluating the outcomes of the strategies and how they have been implemented Who is involved with Strategic Management? Explain their roles in the process. * The board of Directors- Legal obligation to protect the shareholders through corporate governance. * Review and approve strategic goals and plans.

* Review and approve an organizations financial standards * Ensure the integrity of the organizations financial controls * Monitor performance and review the results
* Top Management- Responsible for every decision and outcome, top management plays a most significant role in the strategic management process * Consists of CEO, COO, CFO and CIO
* Determine the organizations purpose
* Exploit and maintain core competencies
* Develop human capital
* Emphasize ethical decisions and practices
* Other managers and employees-
* Put strategies into action
* Determine if the strategies are working properly
* Adjust strategies to reach desired end goals
What are three important factors impacting strategic management today? Chapter 2
Effectively explain three different perspectives on competitive advantage, with examples. * The I/O View
* Developed by Michael Porter
* Focuses on structural forces within an industry
* Includes competitive environment of firms
* Weakness- the views ignore the characteristics of individual companies * Resource Based View
* Views firms resources as essential to competitiveness * Organizations are a collection of assets and capabilities * Uniqueness is the basis for competitive advantage
* Guerilla View
* Competitive advantage is temporary
* Environment continually changes
* Some changes are revolutionary
* Guerilla view argues success is based on adapting and responding to competition25 Describe the three driving forces of today’s business environment. * The information Revolution- The most influential and accelerated. * All the info22rmation saved in the last year would equal 500,000 libraries the size of the library or congress * Digital information available is million times greater than the number of books written * Growth rate of 57% a year

* Instant availability of information
* Technology- All organizations use some form of technology to do work * Equipment, Materials, Knowledge, and Experience
* Some or organizations need technology to do work
* It has replaces approaches and tools of the past
* It impacts people ability to perceive and create new ideas * Mass collaborations available through media sharing and social networks. * Globalization- the global economies effect on strategic management * Continues to transform the business environment

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