Summary
Summary Strategic Management
- Course
- Institution
This summary of Strategic Management provides an overview of key concepts, models and theories from lectures, the book and PowerPoint presentations.
[Show more]
Seller
Follow
ester21012003
Reviews received
Content preview
STRATEGIC MANAGEMENTLECTURE 1: THE CONCEPT OF STRATEGY
4 big issues
To successfully formulate and implement strategy, a firm must confront 4 big issues:
Concepts and evolution Boundaries of the firm Competition (who and Positioning and dynamics
of strategic “schools of (where?) how?) (why?)
thought” (what?)
= define what the firm does. = how and on what basis
does the firm compete?
They can extend in 3
different directions:
1. Horizontal
2. Vertical
3. Corporate
Horizontal: Type of market the Positioning:
= how much of the product business is operating in = static concept.
market does the firm serve? (who): = at a given point in time, is
There are different the firm competing on the
Vertical: competitors in different basis of low costs or
What will be produce? markets. differentiation?
Make or buy? Which competitive
A lot of restaurants have Kind of interaction with advantage do we
their own garden with their rivals (how): want to have and do
vegetables and herbs. This Price oriented strategy. we have the
is vertical integration; they resources and
do not buy them from a Quality oriented strategy. capabilities for
supplier but grow them This is gaining this?
themselves and because of importance
this they can control them because of Dynamics:
better. If you are too increased = how does the firm
dependent on the supplier, available accumulate resources and
it can burden the whole information. New capabilities and how does
supply chain and make you quality it adjust over time to
sell less. competition is changing circumstances.
= upward vertical about good and
integration. bad information.
So, it is not
Corporate: becoming easier.
= the set of distinct
businesses the firm
competes in.
, What is strategy ?
Strategy Tactic
= the overall design and philosophy to plan = a scheme for a specific maneuver.
for deploying resources to establish a
favorable position and reach success.
It is about a long term mission that you want Short term.
to accomplish, a vision that you want to
achieve.
- Strategy is about the plan of how to
get there.
Characteristics of strategic decisions:
Important Involve a significant commitment of Not easily reversible
resources
This implies that these kind of Money and people are needed. Once you’ve communicated, your
decisions take time. strategy you cannot back out
because of strong commitments
and your reputation that is linked to
it.
The role of analysis
Strategy analysis improves and supports decision processes, but doesn’t give answers.
Analysis is a starting basis but it is not telling you what to do, so it is feeding you but it is not
making decisions for you.
This means that you have to think twice. You need to have and use other
frameworks to confront them with each other and see if there is another strategy
that may work better.
Strategy analysis assists us to identify and understand the main challenges of
organizations and businesses.
A SWOT analysis can be an eye-opener if you do it well. Well means that each element has an
origin.
Strategy analysis helps us to manage complexity.
Strategy analysis can enhance flexibility and innovation by supporting learning.
, Strategy making processes within the company: multiple roles of strategy
Becoming increasingly
important.
Strategic plan hierarchy
, What makes a successful strategy?
= to be situation. = as is situation = as is situation
outside of the inside of the
organization. organization.
Who else is What do we
there in our have ?
market and
what are they
doing?
What are the
opportunities
?
This affects us and
our competitors. This only affects us.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ester21012003. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now