First Lecture1

CHAPTER 1 Basic Concepts of Strategic Management

STRATEGIC MANAGEMENT & BUSINESS POLICY
11TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

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Basic Concepts of Strategic Management

Globalization
Internationalization of markets and corporations
Global (worldwide) markets rather than national markets www.iugaza.edu.ps\emp\melfarra

Electronic Commerce
Use of the Internet to conduct business transactions
Basis for competition on a more strategic level rather than traditional focus on product features and costs

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Basic Concepts of Strategic Management

Electronic Commerce -- Trends • • Forcing company transformation Market access & branding changing – disintermediation of traditional distribution channels Balance of power shift to consumer Competition changing

• •

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Basic Concepts of Strategic Management

Electronic Commerce -- Trends • • • Pace\speed of business increasing Internet purchasing beyond traditional boundaries Knowledge key asset – source of competitive advantage

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Strategic Management Defined

Set of managerial decisions and actions that determines the long-run performance of a firm. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control.

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Strategy formulation
• Strategy formulation is typically not a regular, continuous process but is often initiated by generating events, such as a new CEO or a performance gap.

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Basic Concepts of Strategic Management

4 Phases of Strategic Management • Firms evolve through the following faces of strategic management. 1. Basic financial planning 2. Forecast-based planning 3. Externally-oriented planning 4. Strategic management

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Basic Concepts of Strategic Management

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