Nature of Strategic Management

Topics: Strategic management, Management, Strategic planning Pages: 40 (13250 words) Published: June 24, 2011
Fred R. David
"Strategic Management. Concepts and Cases", 9th edition, Pearson Education, Inc., 2003 ISBN 0-13-112372-6

Chapter 1: S.N. Levine, The Investment Managers Handbook, Irwin Professional Publishing


What Is Strategic Management?
Key Terms in Strategic Management
The Strategic-Management Model
Benefits of Strategic Management
Why Some Firms Do No Strategic Planning
Pitfalls in Strategic Planning
Guidelines for Effective Strategic Management
Business Ethics and Strategic Management
Comparing Business and Military Strategy
The Nature of Global Competition


After studying this chapter, you should be able to do the following: 1. Describe the strategic-management process.
2. Explain the need for integrating analysis and intuition in strategic management. 3. Define and give examples of key terms in strategic management. 4. Discuss the nature of strategy formulation, implementation, and evaluation activities. 5. Describe the benefits of good strategic management.

6. Explain why good ethics is good business in strategic management. 7. Explain the advantages and disadvantages of entering global markets. 8. Discuss the relevance of Sun Tzu's The Art of War to strategic management.

Notable Quotes

If we know where we are and something about how we got there, we might see where we are trending—and if the outcomes which lie naturally in out course ate unacceptable, to make timely change. ABRAHAM LINCOLN

Without a strategy, an organization is like a ship without a rudder, going around in circles. It's like a tramp; it has no place to go. JOEL ROSS AND MICHAEL KAMI

Plans are less important than planning.

The formulation of strategy can develop competitive advantage only to the extent that the process can give meaning to workers in the trenches. DAVID HURST

Most of us fear change. Even when our minds say change is normal, our stomachs quiver at the prospect. But for strategists and managers today, there is no choice but to change. ROBERT WATERMAN, JR.

If business is not based on ethical grounds, it is of no benefit to society and will, like ail other unethical combinations, pass into oblivion. C. MAX KILLAN

If a man take no thought about what is distant, he will find sorrow near at hand. He who will not worry about what is fat off will soon find something worse than worry. CONFUCIUS

It is human nature to make decisions based on emotion, rather than on fact. But nothing could be mote illogical. TOSHIBA CORPORATION

No business can do everything. Even if it has the money, it will never have enough good people. It has to set priorities. The worst thing to do is a little bit of everything. This makes sure that nothing is being accomplished. It is better to pick the wrong priority than none at all. PETER DRUCKER

Executives, consultants, and B-school professors all agree that strategic planning is now the single most important management issue and will remain so for the next five years. Strategy has become a part of the main agenda at lots of organizations today. Strategic planning is back with a vengeance. JOHN BYRNE

Planners should not plan, but serve as facilitators, catalysts, inquirers, educators, and synthesizers to guide the planning process effectively. A. HAX AND N. MAJLUF

This chapter provides an overview of strategic management. It introduces a practical, integrative model of the strategic-management process; it defines basic activities and terms in strategic management; and it discusses the importance of business ethics. This chapter initiates several themes that permeate all the chapters of this text. First, global considerations Impact virtually all strategic decisions! The boundaries of countries no longer can define the limits of our imaginations. To see and appreciate the world from the perspective of others has become a matter of survival for businesses. The underpinnings of strategic management...
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