Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
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Strategic Management
• Strategic Management consists of the analysis, decisions and actions an organization undertakes in order to create and sustain competitive advantages. (P5)
• Strategic direction is a course of action that leads to the achievement of the goals of an organization's strategy.
or improve their performance.
“A good strategy… neutralizes threats and exploits opportunities while capitalizing on strengths and avoiding or fixing weaknesses.” (Barney, 1997:17)
• Analysis
• Strategic goals (vision, mission, strategic objectives) • Internal and external environment of the firm
• Strategic decisions
• What industries should we compete in? • How should we compete in those industries?
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
The strategic management process
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
• Actions
• Allocate necessary resources • Design the organization to bring intended strategies
to reality
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• Economic responsibility • Legal responsibility • Moral responsibility
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Strategic Direction
“T•heApnaitntetrengorrapteladn athnadt icnoteogrrdatiensataendosrgeatnoizfation’s major goaclso, mpomliciitems,eanntds a&ctaiocntisoenqsuednecseisgninetodatocoehxepsilvoeitwhole.” (Qucinonr,e19c8o0m) petencies and gain a competitive “A paadttevrannotaf rgees.ource allocation that enables firms to maintain
Adapted from Exhibit 2.1 Inputs to Forecasting
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
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processes of strategic management
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Social Responsibility
• Social responsibility: the expectation that businesses or individuals will strive to improve the overall welfare of society.
Strategic Management:
creating competitive advantages
Gregory G. Dess G. T. Lumpkin Theodore Peridis
Final Exam
Study Guide
Canadian Edition
STRATEGIC MANAGEMENT McGraw-Hill/Irwin
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Strategic Analysis
• Ch 1 Strategic Management: An Overview
• Strategic Management(P5) • Processes of Strategic Management • Social Responsibility(P15) • Strategic Direction (P19) • Sustainable Development • Corporate Governance
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
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What is Strategy?
“A unified, comprehensive, and integrated plan designed to ensure that the basic objectives of the enterprise are achieved.” (Glueck, 1980:9)