Strategic Management Process

B399 Management Policy and Strategy
Tutorial 1
Kent Ip
OUHK

Course Overview
Textbook: Strategic Management and Competitive
Advantage – Concepts and Cases, 4th edition, Barney and Hesterly, Pearson
Part 1
The tools of Strategic Analysis (Chapter 1 – 3)

Part 2
Business Level Strategies (Chapter 4 & 5)

Part 3
Corporate Strategies (Chapter 6 – 11)

Chapter 1
What is Strategy and the
Strategic Management
Process?

1.1 What is Strategy and the Strategic
Management Process?
P.22 Defining Strategy: A firm’s strategy is defined as its theory about how to gain competitive advantages.
1.2 The Strategic Management Process
1) Mission
2) Objectives
3) External and Internal Analysis
4) Strategic Choice
5) Strategic Implementation

1.2 The Strategic Management Process

1) Mission
Missions are often written down in the form of mission statement.
P.23 Some missions may not affect firm performance
(managers are not following the missions)
Some missions can improve firm performance
Some missions can hurt firm performance (missions didn’t allow managers to implement aggressive business move) 1.2 The Strategic Management Process

2) Objectives
Whereas a firm’s mission is a broad statement of its purpose and values, its objectives are specific measurable targets a firm can use to evaluate the extent to which it is realizing its mission.

1.2 The Strategic Management Process

3) External and Internal Analysis
External Analysis is focus on the environmental threats and opportunities facing a firm
Internal Analysis helps a firm identify its organizational strengths and weaknesses

1.2 The Strategic Management Process

4) Strategic Choice
The strategic choices available to firms fall into 2 large categories: 1.2.4.1 Business-level Strategies
Actions firms take to gain competitive advantages in a single market or industry

1.2.4.2 Corporate-level Strategies
Actions firms take to gain competitive advantages by