Mgt B399 U01 150

Topics: Strategic management, Strategic planning, Management Pages: 38 (12126 words) Published: July 1, 2015
MGT B399

Unit 1
Overview
of strategic
management

150

Course team
Developers:

Dr Yeung Ping-kwong, OUHK
Roy Chik Kwok-on, Consultant

Designer:

Caroline Leung, OUHK

Coordinator:

Dr Anthony Ko Chi-keung, OUHK

Member:

Dr Carrie Lee Nga-wan, OUHK

Developer (previous version)
Dr Anthony Ko Chi-keung, OUHK
External Course Assessor
Dr Tseng Choo Sin, City University of Hong Kong
Production
ETPU Publishing Team

Copyright © The Open University of Hong Kong, 2013.
Revised April 2015.
All rights reserved.
No part of this material may be reproduced in any form
by any means without permission in writing from the
President, The Open University of Hong Kong. Sale of this
material is prohibited.
The Open University of Hong Kong
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This course material is printed on environmentally friendly paper.

Contents
Introduction

1

Strategic management: An overview

2

Strategy
Policy
The strategic management process
The promise and limitations of strategic management
Origins of strategic management

4
5
6
7
9

The core issues of strategic management: firm performance
and competitive advantage
13
Firm performance
Towards a model of firm performance
Competitive advantage

13
16
17

Strategic intent, the mission statement and the work of
strategic leaders

22

Analysing case studies in strategic management

27

Summary

30

References

32

Suggested answers to self-tests

34

Strategic intent
The mission statement
The role of strategic leaders

Stage one: Overview and identification of strategic issues
Stage two: Detailed examination of strategic issues
Stage three: Synthesis and conclusion

22
23
25
27
27
28

Unit 1

Introduction
Welcome to MGT B399 Management Policy and Strategy. As a capstone course, MGT B399 is challenging, and requires critical thinking and analysis. Setting policy and strategy for a firm or organization is the main function of top management and the ultimate purpose of this course is to help you to develop a way of thinking that is suitable for someone holding a senior management position.

To achieve this purpose, we shall use the theories and tools of strategic management. Strategic management is a relatively young discipline. The main purpose of this unit is to introduce the history, nature and key concepts of strategic management.

More specifically, this unit:


identifies and describes the core issues of strategic management;



summarizes the history of strategic management;



outlines and delineates the scope of strategic management and the strategic management process;



describes and explains the core concepts of value, sustainable competitive advantage, positioning, resources and capabilities, strategic mission and strategic intent; and



describes the process of case analysis.

This unit will also introduce the case study method, a method which will help you to apply and assimilate the theories and tools of strategic management.
As shown in the Course Guide, two weeks of study are allocated to Unit 1. You are required to read the following from your textbook, Barney, J and Hesterly, W (2012) Strategic Management and
Competitive Advantage: Concepts and Cases, 4th edn, Pearson: •

Chapter 1



Appendix: ‘Analyzing cases and preparing for class discussions’, 361–64.

In addition, you are strongly encouraged to read Readings 1.1 and 1.2 listed at the end of the first section of this unit.

1

2

MGT B399 Management Policy and Strategy

Strategic management: An
overview
As a capstone course for the BBA programme, MGT B399 Management Policy and Strategy is equivalent to ‘strategic management’ or ‘business policy’ courses offered at other universities. Courses in strategy are capstone courses because they take a holistic view of organization and business functions. Let’s begin our discussion...

References: Amit, R and Schoemaker, P (1993) ‘Strategic assets and organizational
rent’, Strategic Management Journal, 14:33–46.
Barney, J B (1991) ‘Firm resources and sustained competitive advantage’,
Journal of Management, 17(1): 99–120.
Barney, J B (2010) Gaining and Sustaining Competitive Advantage, 4th
edn, Upper Saddle River, New Jersey: Pearson.
Bowman, E H, Singh, H and Thomas, H (2002) ‘The domain of strategic
management: History and evolution’ in Pettigrew, A, Thomas, H and
David, F (2011) Strategic Management: Concepts and Cases, 13th edn,
Upper Saddle River, NJ: Pearson.
Ghemawat, P (2002) ‘Competition and business strategy in historical
perspective’, Business History Review, 76:37–74.
Grant, R (2010) Contemporary Strategy Analysis, 7th edn, Blackwell.
Ireland, R D, Hoskisson, R E and Hitt, M A (2013) The Management of
Strategy: Concepts and Cases, 10th edn, South-Western Publishing,
Jones, G R and Hill, C W L (2013) Theory of Strategic Management with
cases, South-Western Publishing, Cengage Learning.
McGahan, A and Porter, M (1997) ‘How much does industry matter,
really?’, Strategic Management Journal, 18:15–30.
New World Development (2009, 2010) Annual Reports.
Sanchez, R, Heene, A and Thomas, H (eds) (1996) ‘Towards the theory
and practice of competence-based competition’ in Dynamics of
Steinmetz, S (ed.) (1997) Webster’s College Dictionary, New York:
Random House.
Sun Hung Kai Property (2009, 2010) Annual Reports.
Thompson, A A and Gamble, J E (2001) ‘Dell Computer Corporation:
strategy and challenges for the 21st century’ in Thompson, A A Jr and
Wong S W (2008) ‘A study of the structure and performance of the real
estate development industry in Hong Kong’, University of Hong Kong.
Unit 1
Wright, P, Kroll, M J and Parnell, J (1998) Strategic Management:
By extending its reach (through the Island Line in 1985) and providing
more direct links (the Eastern Harbour Crossing connecting Lam Tin to
Quarry Bay in 1989, Tung Chung Line in 1998 and Tseung Kwan O Line
in 2002), the MTR increased its catchment area, and consequently its
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