Mgt B399 U01 150

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

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Revised April 2015.
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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

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