Ch. 12: Org. Structure &
Controls
Chapter 11: Corporate Governance
Strategic Actions
Strategy Formulation
Chapter 5: Bus.-Level Strategy
Chapter 6: Competitive Dynamics
Knowledge Objectives:
1. Understand the ultimate goal of strategic mgmt. – to impact organizational performance.
2. Defining performance,ve-average returns, average returns and below-average returns.
When the actual value created is greater than the expected value
.
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Defining Organizational Performance
The Concept of Value…
What is received for what is given.
Chapter 7: Chapter 8: Corp.-Level Acquisition &
Strategy Restructuring
Chapter 9: Chapter 10:
International Cooperative
Strategy
Strategy
.
2-2
Strat. Management & Firm Performance
• The person who runs 100 meters the fastest
• The person who jumps the highest
• The team who wins the Stanley Cup in the NHL
For firms, it’s when the company successfully formulates & implements a value-creating strategy.
The goal is to gain an economic advantage.
.
2-4
What Is Performance?
An important question in the study of firms. What is performance?
In athletics, it’s straightforward:
3. Discuss the different ways in which organizational performance is measured.
4. Know the strengths and weaknesses of different measures of organizational performance.
Strategy Implementation
Strategic Objectives & Inputs
CChh.a1p:tSertr1a:t. Chapter 3: MgSmtrta. t&egCiocm- The External Mpeatnitaigvenmeesnst Environment
Strategic Management and Firm Performance
Chapter Two
© 2006 by Nelson, a division of. Thomson Canada Limited.
2-1
The Strategic Management Process
Strategic Competitiveness
.
a2*n -5
Levels of Performance
Below-normal Normal performance Above-normal
When the actual value created is less than the value owners expectations
Occurs when the actual value created is equal to the expected value
5. Define corporate social responsibility, sustainability, and the triple bottom line.
.
2-3
Defining Performance
An organization is an association of productive assets who have voluntarily come together to accomplish a set of goals.
?
For customers: ‘Did I receive more than I gave?’
• If the answer is yes, value was created. • If the answer is no, value was destroyed.
For shareholders: Value creation means getting more from an investment than could have been received from another investment with similar risk.
Ch. 2: Strat. Chapter 4: Mgmt . & The Internal
Performance Environment
Strategic Mission & Strategic Intent
Chapter 13: Chapter 14: Strategic Org. Renewal Leadership & Innovation