Sm Jan 2013 Lecture 1 Text Notes
Lecture No. 1
Introduction to Strategic Management
Chapter Summary
Strategic management is the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. Because it involves long-term, future-oriented, complex decision making and requires considerable resources, top-management participation is essential. This chapter describes strategic management as a three-tier process involving corporate-, business-, and functional-level planners, and support personnel. At each progressively lower level, strategic activities are more specific, narrow, short-term, and action-oriented, with lower risks but fewer opportunities for dramatic impact.
The strategic management model presented in this chapter serves as the structure for understanding and integrating all the major phases of strategy formulation and implementation. The chapter provides a summary account of these phases, each of which is given extensive individual attention in subsequent chapters. Finally, the chapter stresses that the strategic management process centers on the belief that a firm’s mission can be best achieved through a systematic and comprehensive assessment of both its internal capabilities and its external environment.
Learning Objectives
1. Explain the concept of strategic management. 2. Describe how strategic decisions differ from other decisions that managers make. 3. Name the benefits and risks of a participative approach to strategic decision making. 4. Understand the types of strategic decisions for which managers at different levels of the company are responsible. 5. Describe a comprehensive model of strategic decision making. 6. Appreciate the importance of strategic management as a process. 7. Give examples of strategic decisions that companies have recently made.
Lecture Outline
I. The Nature and Value of Strategic Management
A. Exhibit 1.1, Strategy in Action gives
Introduction to Strategic Management
Chapter Summary
Strategic management is the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. Because it involves long-term, future-oriented, complex decision making and requires considerable resources, top-management participation is essential. This chapter describes strategic management as a three-tier process involving corporate-, business-, and functional-level planners, and support personnel. At each progressively lower level, strategic activities are more specific, narrow, short-term, and action-oriented, with lower risks but fewer opportunities for dramatic impact.
The strategic management model presented in this chapter serves as the structure for understanding and integrating all the major phases of strategy formulation and implementation. The chapter provides a summary account of these phases, each of which is given extensive individual attention in subsequent chapters. Finally, the chapter stresses that the strategic management process centers on the belief that a firm’s mission can be best achieved through a systematic and comprehensive assessment of both its internal capabilities and its external environment.
Learning Objectives
1. Explain the concept of strategic management. 2. Describe how strategic decisions differ from other decisions that managers make. 3. Name the benefits and risks of a participative approach to strategic decision making. 4. Understand the types of strategic decisions for which managers at different levels of the company are responsible. 5. Describe a comprehensive model of strategic decision making. 6. Appreciate the importance of strategic management as a process. 7. Give examples of strategic decisions that companies have recently made.
Lecture Outline
I. The Nature and Value of Strategic Management
A. Exhibit 1.1, Strategy in Action gives