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    Chapter 9

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    Yousef Wardat
    Strategic management involves developing strategies to help an organization compete successfully and achieve its goals. The strategic management process has six steps: 1) identifying the organization's mission and strategies, 2) external analysis, 3) internal analysis, 4) formulating strategies, 5) implementing strategies, and 6) evaluating results. There are three main types of strategies - corporate, competitive, and functional. Corporate strategies determine what businesses an organization is in or wants to be in. Competitive strategies are how an organization will compete in its businesses. Competitive advantage, which provides a distinctive edge, is important for competitive strategies.

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    Chapter 9

    Uploaded by

    Yousef Wardat
    27 views21 pages
    Strategic management involves developing strategies to help an organization compete successfully and achieve its goals. The strategic management process has six steps: 1) identifying the organization's mission and strategies, 2) external analysis, 3) internal analysis, 4) formulating strategies, 5) implementing strategies, and 6) evaluating results. There are three main types of strategies - corporate, competitive, and functional. Corporate strategies determine what businesses an organization is in or wants to be in. Competitive strategies are how an organization will compete in its businesses. Competitive advantage, which provides a distinctive edge, is important for competitive strategies.

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    Strategic management involves developing strategies to help an organization compete successfully and achieve its goals. The strategic management process has six steps: 1) identifying the organization's mission and strategies, 2) external analysis, 3) internal analysis, 4) formulating strategies, 5) implementing strategies, and 6) evaluating results. There are three main types of strategies - corporate, competitive, and functional. Corporate strategies determine what businesses an organization is in or wants to be in. Competitive strategies are how an organization will compete in its businesses. Competitive advantage, which provides a distinctive edge, is important for competitive strategies.

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    Download as pptx, pdf, or txt
    27 views21 pages

    Chapter 9

    Uploaded by

    Yousef Wardat
    Strategic management involves developing strategies to help an organization compete successfully and achieve its goals. The strategic management process has six steps: 1) identifying the organization's mission and strategies, 2) external analysis, 3) internal analysis, 4) formulating strategies, 5) implementing strategies, and 6) evaluating results. There are three main types of strategies - corporate, competitive, and functional. Corporate strategies determine what businesses an organization is in or wants to be in. Competitive strategies are how an organization will compete in its businesses. Competitive advantage, which provides a distinctive edge, is important for competitive strategies.

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    of 21

    Managing Strategy

    Chapter 9
    F I F T E E N T H E D I T I O N , G L O B A L E D I T I O N
    Learning Objectives
    Define strategic management and explain Explain what managers do during the six
    01 why it’s important. 02 steps of the strategic management process

    Describe the three types of corporate Describe competitive advantage and the
    03 strategies
    04 competitive strategies organizations use to
    get it.
    What is Strategic Management?

    • Strategic management: what managers do to develop the


    organization’s strategies
    • Strategies: the plans for how the organization will do what it’s in
    business to do, how it will compete successfully, and how it will
    attract and satisfy its customers in order to achieve its goals
    • Business model: how a company is going to make money
    Why is Strategic Management
    Important?
    • Has a positive impact on performance
    • Helps managers decide how to act in face of change and
    uncertainty
    • Helps complex and diverse organizations work together
    Exhibit 9.1 Strategic Management
    Process
    Step 1: Identifying the Organization’s Current
    Mission, Goals, and Strategies
    • Mission: the purpose of an organization
    Step 2: Doing an External Analysis

    • Opportunities: positive trends in the external environment


    • Threats: negative trends in the external environment
    Step 3: Doing an Internal Analysis
    • Resources: an organization’s assets that are used to develop,
    manufacture, and deliver products to its customers
    • Capabilities: an organization’s skills and abilities in doing the
    work activities needed in its business
    SWOT Analysis
    • Strengths: any activities the organization does well or its unique
    resources
    • Weaknesses: activities the organization does not do well or
    resources it needs but does not possess

    • SWOT analysis: an analysis of the organization’s strengths,


    weaknesses, opportunities, and threats
    Step 4: Formulating Strategies

    Three main types of strategies managers will formulate:

    • Corporate
    • Competitive
    • Functional
    Step 5: Implementing Strategies

    No matter how effectively an organization has planned its


    strategies, performance will suffer if the strategies aren’t
    implemented properly.
    Step 6: Evaluating Results

    • How effective have strategies been at helping the


    organization achieve its goals

    • What adjustments are necessary?


    Exhibit 9.3 Types of Organizational
    Strategies
    What is Corporate Strategy?

    • Corporate strategy: an organizational strategy that determines


    what businesses a company is in or wants to be in, and what it
    wants to do with those businesses
    What Are the Types of Corporate
    Strategy?

    • Growth strategy
    • Stability and Renewal Strategies
    Growth strategy

    •Growth strategy: a corporate strategy that’s used when an organization


    wants to expand the number of markets served or products offered, either
    through its current business(es) or through new business(es)
    –Concentration
    –Vertical integration
    –Horizontal integration
    –Diversification
    Stability and Renewal Strategies

    • Stability strategy: a corporate strategy in which an organization


    continues to do what it is currently doing.

    • Renewal strategy: a corporate strategy designed to address declining


    performance
    How Are Corporate Strategies Managed?

    • BCG matrix: a strategy tool that guides resource allocation


    decisions on the basis of market share and growth rate of
    SBUs
    • –Stars
    • –Cash cows
    • –Question marks
    • –Dogs
    Competitive Strategies

    • Competitive strategy: an organizational strategy for how an


    organization will compete in its business(es)
    The Role of Competitive Advantage

    • Competitive advantage: What sets an organization


    apart; its distinctive edge
    Competitive advantage can stem from:
    • –Quality
    • –Low cost
    • –Technology
    • Other factors
    Choosing a Competitive Strategy

    •Cost leadership strategy


    •Differentiation strategy

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