Introduction to Strategic Management _ Business Policy

Ronaldo ParenteChapter 1Wheelen & Hunger –10ed1Introduction to Strategic Management & Business PolicyChapter 01Ronaldo ParenteChapter 1Wheelen & Hunger –10ed2•Strategic Management and Business Policy•How Strategic Management Evolves–Financial planning–Forecast-based planning–Strategic Planning: Externally-oriented planning–Strategic management: Seeks Competitive Advantage and Consider Implementation & Control)•Benefits of Strategic Management–Long term orientation and fit between environment, strategy, structure and processes may lead to competitive advantage•Challenges: Globalization & E-CommerceRonaldo ParenteChapter 1Wheelen & Hunger –10ed3Theories of Organization Adaptation–Theory of Population Ecology–Institutional theory–Strategic Choice Perspective–Organization Learning Theory•Learning Organizations•Strategic FlexibilityRonaldo ParenteChapter 1Wheelen & Hunger –10ed4Basic Model of Strategic ManagementFour Basic ElementsRonaldo ParenteChapter 1Wheelen & Hunger –10ed51. Environmental ScanningRonaldo ParenteChapter 1Wheelen & Hunger –10ed62. Strategy Formulation•Mission Statement–Setting Objectives & Goals–A statement of purpose (strategic intent) committing the organization to ambitious overarching (stretch) objectives.•Provides a sense of direction and purpose.•Drives strategic decision making and resource allocations. •Forces the seeking of significant performance improvements to attain objectives–Customer Orientation and Business Definition–Abell’s Framework for Defining the business–Consumer-oriented versusProduct-oriented business definitionRonaldo ParenteChapter 1Wheelen & Hunger –10ed72. Strategy Formulation•Selecting Strategy–Corporate strategy (Stability, Growth, Retrenchment)–Business strategy (Competitive, Cooperative)–Functional strategy (Technological Leadership, Technological Followership)•Defining Policies–Guidelines for decision making that links formulation to implementationRonaldo ParenteChapter 1Wheelen & Hunger –10ed83. Strategy ImplementationStrategy ImplementationProgramsBudgetsProcedures4. Evaluation & Control-Continuous processRonaldo ParenteChapter 1Wheelen & Hunger –10ed9Strategic Decision Making ModelRonaldo ParenteChapter 1Wheelen & Hunger –10ed10Strategic Decision Making