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Explainwhatmanagersdoduringthesixstepsofthestrategicmanagementprocess
Describethethreetypesofcorporatestrategies
Describecompetitiveadvantageandthecompetitivestrategiesorganizationsusetogetit
Discusscurrentstrategicmanagementissues
WhatIsStrategicManagement?
Strategicmanagement-whatmanagersdotodeveloptheorganization’sstrategies.
Strategies-theplansforhowtheorganizationwilldowhatit’’sinbusinesstodo,howitwillcompetesuccessfully,andhowitwillattractandsatisfyitscustomersinordertoachieveitsgoals.
Businessmodel-howacompanyisgoingtomakemoney.
WhyIsStrategicManagementImportant?
Itresultsinhigherorganizationalperformance.
Itrequiresthatmanagersexamineandadapttobusinessenvironmentchanges.
Itcoordinatesdiverseorganizationalunits,helpingthemfocusonorganizationalgoals.
WhatistheStrategicManagementProcess?
Strategicmanagementprocess-asix-stepprocessthatencompassesstrategicplanning,implementation,andevaluation.
Exhibit9-1:StrategicManagementProcess
StrategicManagementProcess
Step1:Identifyingtheorganization’scurrent mission,goals,andstrategies
Mission:astatementofthepurposeofanorganization
Thescopeofitsproductsandservices
Goals:thefoundationforfurtherplanning
Measurableperformancetargets
Step2:Doinganexternalanalysis
Theenvironmentalscanningofspecificandgeneralenvironments
Focusesonidentifyingopportunitiesandthreats
Exhibit9-2:ComponentsofaMissionStatement
StrategicManagementProcess
Step3:Doinganinternalanalysis
Assessingorganizationalresources,capabilities,andactivities:
Strengthscreatevalueforthecustomerandstrengthenthecompetitivepositionofthefirm.
Weaknessescanplacethefirmatacompetitivedisadvantage.
Analyzingfinancialandphysicalassetsisfairlyeasy,butassessingintangibleassets(employeeskills,culture,corporatereputation,etc.)isn’tassimple.
Steps2and3combinedarecalledaSWOTanalysis.(Strengths,Weaknesses,Opportunities,andThreats)
SWOTAnalysis
SWOTanalysis-ananalysisoftheorganization’sstrengths,weaknesses,opportunities,andthreats.
Resources-anorganization’sassetsthatareusedtodevelop,manufacture,anddeliveraproducttoitscustomers.
Capabilities-anorganization’sskillsandabilitiesindoingtheworkactivitiesneededinitsbusiness.
StrengthsandWeaknesses
Strengths-anyactivitiestheorganizationdoeswelloranyuniqueresourcesthatithas.
Weaknesses-activitiestheorganizationdoesnotexecutewellorneededresourcesitdoesnotpossess.
Corecompetencies-theorganization’smajorvalue-creatingcapabilitiesthatdetermineitscompetitiveweapons.
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