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Strategy Management Key Points

Strategy Management eBook Summary

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18 views1 page

Strategy Management Key Points

Strategy Management eBook Summary

Uploaded by

brian07151992
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Strategy Management Textbook Key Points:

Chapter 1
1. When firms enter foreign markets, they face both opportunities and pitfalls. Managers must
decide not only on the most appropriate entry strategy but also how they will go about attaining
competitive advantages in international markets.
2. Entrepreneurial activity aimed at new value creation is a major engine for economic growth. For
entrepreneurial initiatives to succeed, viable opportunities must be recognized and effective
strategies must be formulated.
3. Firms must exercise two types of strategic control. First, informational control requires that
organizations continually monitor and scan the environment and respond to threats and
opportunities. Second, behavioral control involves the proper balance of rewards and incentives
as well as cultures and boundaries (or constraints).
4. Firms must have organizational structures and designs that are consistent with their strategy. In
the rapidly changing competitive environments today, firms must ensure that their organizational
boundaries (those internal to the firm and external) are more flexible and permeable.
5. Given rapid and unpredictable change, leaders must create a learning organization so that the
entire organization can benefit from individual and collective talents.
6. Effective leaders set a direction, design the organization, and develop an organization that is
committed to excellence and ethical behavior.
7. Firms must continually improve and grow as well as find new ways to renew their organizations.
Corporate entrepreneurship and innovation provide firms with new opportunities, and strategies
should be formulated that enhance the innovative capacity of the firm.
8. Strategy implementation involves ensuring proper strategic controls and organizational designs,
which includes establishing effective means to coordinate and integrate activities within the firm
as well as with its suppliers, customers, and alliance partners. Leadership plays a central role,
ensuring that the organization is committed to excellence and ethical behavior. It also promotes
learning and continuous improvement and acts entrepreneurially in creating new opportunities.
Competition is not part of the implementation plan of the firm. It is considered earlier in the
strategic management process.
9. Actions must be moral, legal, and ethical. Judgment is important in maintaining personal
integrity, but actions should not be judgmental in nature.
10. An organization is responsible to many different entities. In order to meet the demands of these
groups, organizations must participate in stakeholder management. Stakeholder management
means that interests of the stockholders are not the only interests that matter.
11. Stakeholders are those individuals, groups, and organizations that have a stake in the success of
the organization, including owners (shareholders in a publicly held corporation), employees,
customers, suppliers, the community at large, and so on.
12. Organizations can achieve mutual benefit through stakeholder symbiosis, which recognizes that
stakeholders are dependent upon each other for their success and well-being.
13. In the zero-sum view, the role of management is to look upon the various stakeholders as
competing for the resources of the organization. In essence, the gain of one individual or group is
the loss of another individual or group.
14. Employees as a stakeholder group are concerned with wages, benefits, safe working environment,
and job security.
15. Stockholders are interested in dividends and capital appreciation.

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