Wipro Ltd
part
one
1
Strategic Analysis
Strategic Analysis
outline
Strategic Management: Creating Competitive Advantages: An Overview
Analyzing the External Environment of the Firm
3
2
Analyzing the Internal Environment of the Firm
Recognizing a Firm’s Intellectual Assets: Human Capital, Technology and Knowledge, Brands and Trademarks, Relationships
4
chapter 1 Strategic Management:
Creating Competitive Advantages: An Overview
After reading this chapter, you should have a good understanding of:
LO 1 the essence and definitions of strategy, strategic management, and competitive advantages. LO 2 the four key attributes of strategic management and the three principal and interrelated activities of the strategic management process. LO 3 the vital role of corporate governance and stakeholder management in the strategic management process and the long-term success of all organizations. LO 4 the key environmental forces that create unpredictable change and call for a greater strategic management perspective throughout the organization. LO 5 how an awareness of a hierarchy of strategic goals can help an organization achieve coherence in its strategic direction.
learning objectives
Chapter 1 Strategic Management: Creating Competitive Advantages: An Overview
5
One of the things that makes the study of strategic management so interesting is that it tries to answer the question: Why do some firms outperform others? How is it that struggling firms can become stars, while high flyers can become earthbound very rapidly? When Wal-Mart announced its intentions of entering the Canadian retail scene in the mid-1980s, most established companies—large and small alike—were justifiably terrified. Within the next few years and as a direct result of Wal-Mart’s aggressive strategy, venerable competitors, such as Eaton’s and Kmart, disappeared. Others, though, were able to survive and some, such as Canadian Tire and Loblaws, faced the onslaught
one
1
Strategic Analysis
Strategic Analysis
outline
Strategic Management: Creating Competitive Advantages: An Overview
Analyzing the External Environment of the Firm
3
2
Analyzing the Internal Environment of the Firm
Recognizing a Firm’s Intellectual Assets: Human Capital, Technology and Knowledge, Brands and Trademarks, Relationships
4
chapter 1 Strategic Management:
Creating Competitive Advantages: An Overview
After reading this chapter, you should have a good understanding of:
LO 1 the essence and definitions of strategy, strategic management, and competitive advantages. LO 2 the four key attributes of strategic management and the three principal and interrelated activities of the strategic management process. LO 3 the vital role of corporate governance and stakeholder management in the strategic management process and the long-term success of all organizations. LO 4 the key environmental forces that create unpredictable change and call for a greater strategic management perspective throughout the organization. LO 5 how an awareness of a hierarchy of strategic goals can help an organization achieve coherence in its strategic direction.
learning objectives
Chapter 1 Strategic Management: Creating Competitive Advantages: An Overview
5
One of the things that makes the study of strategic management so interesting is that it tries to answer the question: Why do some firms outperform others? How is it that struggling firms can become stars, while high flyers can become earthbound very rapidly? When Wal-Mart announced its intentions of entering the Canadian retail scene in the mid-1980s, most established companies—large and small alike—were justifiably terrified. Within the next few years and as a direct result of Wal-Mart’s aggressive strategy, venerable competitors, such as Eaton’s and Kmart, disappeared. Others, though, were able to survive and some, such as Canadian Tire and Loblaws, faced the onslaught