Description:
INCLUDES Some or all of the following
- Supports different editions ( newer and older)
- Answers to problems & Exercises. in addition to cases
- Outlines and summary
- Faculty Approved answers.
- Covers ALL chapters.
Chapter 1
Mastering Strategy: Art And Science
1. Defining Strategic Management and Strategy
Learn what strategic management is.
Understand the key question addressed by strategic management.
Understand why it is valuable to consider different definitions of strategy.
Learn what is meant by each of the 5 Ps of strategy.
Teaching Suggestions
1. In the course of discussing this section, the instructor can discuss the examples of Apple, Kmart, and Old Navy in detail.
2. The instructor can ask the students to discuss an incidence in their life where they followed a set strategy to successfully achieve required results.
Section Outline
Strategic management helps answer the key question: “why do some firms outperform other firms?”
oExamines how actions and events involving top executives, firms, and industries influence a firm’s success or failure.
oFormal tools exist for understanding these relationships. oCreativity is just as important to strategic management; mastering strategy is therefore part art and part science.
Strategy is a complex concept that involves many different processes and activities within an organization.
oProfessor Henry Mintzberg articulated what he labeled as the “5 Ps of strategy.”; understand plan, as a ploy, position, pattern, and as a perspective is important.
Strategic plans are the essence of strategy according to one classic view of strategy.
oA strategic plan is a carefully crafted set of steps that a firm intends to follow
in order to be successful.
oA business model should be a central element of a firm’s strategic plan.
oDescribes the process through which a firm hopes to earn profits.
oRequires that a firm sell goods or services for more than it costs the firms to create and distribute those goods.
oProviding customers with a good or service more cheaply than they can create it themselves.
oWhen firms buy their ingredients in massive quantities, they pay far less for these items than any family could (an advantage called economies of scale ).
Strategic plans are important to individuals too.
Maintaining flexibility is wise for individuals planning their career strategies as well as for firms.
For firms, these unexpected twists and turns places limits on the value of strategic planning.
oFrom that point forward, strategy is less about a plan and more about making adjustments to a shifting situation. oAs events unfold around a firm, its strategic plan may reflect a competitive reality that no longer exists.
A second way to view strategy is in terms of ploys.
oA strategic ploy is a specific move designed to outwit or trick competitors.
oPloys often involve using creativity to enhance success.
oPloys can be especially beneficial when facing much stronger opponents.
Strategy as pattern is a third way to view strategy.
oThis view focuses on the extent to which a firm’s actions over time are consistent.
oA very consistent pattern can make a company predictable.
Viewing strategy as a plan, ploy, and a pattern involve only the actions of a single firm.
In contrast, the next P – strategy as position – considers a firm and its competitors.
oRefers to a firm’s place in the industry relative to its competitors.
oFirms sometimes change positions in search of greater success, but this can be a risky move.
The fifth and final, P – strategy as perspective – refers to how executives interpret the competitive landscapes around them.
oBecause each person is unique, two different executives could look at the same event and attach very different meanings to it.
oBeing led by executives who adopt unique and positive perspectives can lead
firms to find and exploit opportunities that others simply miss.
Key Takeaway Strategic management focuses on firms and the different strategies that they use in an effort
to become and remain successful. Multiple views of strategy exist, and the 5 Ps described by
Henry Mintzberg enhance understanding of the various ways in which firms conceptualize strategy.
Exercises
1. How developed is your strategy to manage your career? Should you make it more detailed? Why or why not?
Answer: Student answers will vary. Strategy is a complex concept that involves many different processes and activities within an organization. A strategic plan is a carefully crafted set of steps that a firm intends to follow in order to be successful. A student can examine if she has made steps to be followed in order to succeed in her career. Maintaining flexibility is wise for individuals planning their career strategies. A strategy can be made more detailed only if it involves making adjustments to a shifting situation. 2. Identify an example of each of the 5 Ps of strategy other than the examples offered above.
Answer: Student answers will vary. A strategy can be viewed as a plan, as a ploy, as a position, as a pattern, and as a perspective.
(i) A strategic plan is a carefully crafted set of steps that a firm intends to follow in order to be successful. Nokia and Microsoft created a strategic plan to form a broad strategic partnership that would use their complementary strengths and expertise to create a new global mobile ecosystem. The two firms intend to jointly create market-leading mobile products and services designed to offer consumers, operators and developers, unrivalled choice and opportunity. As each company would focus on its core competencies, the partnership would create the opportunity for rapid time to market execution. (ii) A strategic
ploy is a specific move designed to outwit or trick competitors. For example, a grocery chain
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 TestBanks2022. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $38.99. You're not tied to anything after your purchase.
