•Define key terms in strategic management
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Historical development of strategic management
➢ Ansoff felt that management could use these strategies to systematically prepare for future opportunities and challenges.
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Origin of strategy
A strong military heritage underlies the study of strategic management
A key aim of both business and military strategy is to gain “competitive advantage”
By determining the relative ‘power’ of each of five forces, an organization can identify how to position itself to take advantage of opportunities and overcome or circumvent threats
1990s
Gary Hamel, C.K.Prahalad
➢ Core competence： the one or two key things that your company does better than the competition
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Historical development of strategic management1990s
Resource/Competence Based Approach
(inside-out approach) Internal resources/competences are more important for a firm
Michael Porter’s core field is competition and company strategy. He is generally recognized as the father of the modern strategy field, and his ideas are taught in virtually every business school in the world.
than external factors in achieving and sustaining CA Jay Barney: organizational performance will primarily be
determined by internal resources : ➢ Physical resources—plant, equipment, location, technology,
This approach views strategic management as a highly systematized and deterministic process ( Andrews, Ansoff, Argenti)
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Competitive advantage can be gained by being opportunistic and taking advantage of unforeseen opportunities
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Chapter objective
•Describe the strategic management process •Explain the need for integrating analysis and intuition in strategic management
focus the market positioning strategies of variety based, needs based, and
access based market positions global strategy Porter's clusters of competence for regional economic development Diamond model
Business strategy is based on assumption of competition whereas military strategy is based on an assumption of conflict
Henan Agricultural University Zheng
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Historical development of strategic management
Criticisms of competitive positioning approach
Michael Porter‘s models focus on the company’s external competitive environment，and do not attempt to look inside the company
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Historical development of strategic management
The prescriptive, deliberate or planned approach is based on long term planning which seeks to achieve a “fit” between organizational strategy and the environment in which it operates
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Historical development of strategic management
I/O View Industrial Organization View
The Industrial Organization approach to competitive advantage advocates that external (industry) factors are more important than internal factors in a firm achieving competitive advantage.
Employees` work activities
Management activities
Technology and operations methods
Industrial environment
Outputs
Products & services Financial results Information Human results
第一章战略管理概述-精选
Chapter 1 The Nature of Strategic Management
Strategic Management: Concepts & Cases 11th Edition Fred David
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information systems, patents, trademarks, copyrights, databases, and so on
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Historical development of nan Agricultural University Zheng
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Historical development of strategic management
Competitive Positioning Approach（outside-in）
The first fundamental determinant of a firm’s profitability is industry attractiveness. Competitive strategy must grow out of a sophisticated understanding of the rules of competition that determine an industry’s attractiveness
1980s the development of modern strategy
management
Michael Eugene Porter （M．E．Porter）
Michael Porter is the author of 18 books and numerous articles including Competitive Strategy, Competitive Advantage, Competitive Advantage of Nations,