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Strategic Management: What Is Strategy and Why Is It Important?

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Strategic Management: What Is Strategy and Why Is It Important?
Strategic Management: What Is Strategy and Why Is It Important?

Module Lecturer:

B. Sc., ADCP, MIM (SL), MBA Senior Lecturer/Consultant

National Institute of Business Management Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Learning Objectives
1. Understand the role of business strategies in moving a company in the intended direction, growing its business, and improving its financial and market performance. 2. Develop an awareness of the four most reliablestrategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Learn that business strategies evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. 4. Understand why a company’s strategy must underpinned by a business model that produces revenues sufficient to cover costs and earn a profit. 5. Gain awareness of the three tests that distinguish a winning strategy from a so-so or flawed strategy. 6. Learn why good strategy and good strategy execution are the most trustworthy signs of good management.
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Chapter Roadmap
 What Do We Mean by “Strategy?”  Strategy and the Quest for Competitive Advantage  Identifying a Company’s Strategy  Why a Company’s Strategy Evolves Over Time  A Company’s Strategy Is Partly Proactive and 






Partly Reactive Strategy and Ethics: Passing the Test of Moral Scrutiny The Relationship Between a Company’s Strategy and Its Business Model What Makes a Strategy a Winner? Why Are Crafting and Executing Strategy Important?
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Thinking Strategically: The Three Big Strategic Questions
1. What’s the company’s present situation?

2. Where does the company need to go from here?
 Business(es) to be in and market positions to stake out  Buyer needs and groups to serve  Direction to head

3. How should it get there?
 A company’s answer to “how will we get there?” is its strategy
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What Do We

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