Strategic Management in action * chapter 1
CHAPTER 1 – INTRODUCING
THE CONCEPTS
Katie Ficken
Ryan Lacy
Kelsey Combest
Taylor Stevenson
STRATEGIC MANAGEMENT IN ACTION
Learning Outcomes
Why strategic management is important
What strategic management is
Who’s involved with strategic management
Three important factors impacting strategic management today
Why Strategic Management is Important
Everyone in an organization plays a role in managing strategically.
Strategic management can make a difference in how well an organization performs; helps deal with continually changing situations; and helps in coordinating various divisions, functions, and work activities.
What Strategic Management Is
The Basics of Strategy and Strategic Management
Strategies: an organization’s goal-directed plans and actions that align its capabilities and resources with the opportunities and threats in its environment.
Strategic management: a process of analyzing the current situation, developing appropriate strategies, putting those strategies into action, and evaluating and changing those strategies as needed.
Strategic management is interdisciplinary, has an external and internal focus, and involves future direction.
What Strategic Management Is
The Strategic Management Process
What Strategic Management Is
The Strategic Management Process
Situation Analysis – scanning and evaluating the current organizational context & external environment.
Strategy Formulation – developing and then choosing the appropriate strategies.
Functional strategies (operational strategies)
Competitive strategies (business strategies)
Corporate strategies
What Strategic Management Is
The Strategic Management Process
Strategy Implementation – putting the various strategies into action.
Strategy Evaluation – evaluating both the outcomes of the strategies and how they’ve been implemented, and making modifications as needed.
Who’s Involved With Strategic Management
Three main groups who play key roles in the strategic management process:
The Board of Directors – an elected group that represents a company’s shareholders.
Bill Campbell
Steve Jobs
Al Gore
Who’s Involved With Strategic Management
Top Management Team – typically the chief executive officer (CEO) and other executive or senior managers such as a chief operating officer (COO), chief financial officer (CFO), chief information officer (CIO), and others.
Steve Jobs, CEO
Timothy Cook, COO
Peter Oppenheimer, CFO
Other Mangers & Organizational Employees – individuals that put the strategies into action and evaluate them.
Who’s Involved With Strategic Management
Top management’s role involves strategic leadership: the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate change that will create a viable and valuable future for the organization.
Establishing
Appropriately
Balanced
Controls
Determining
Organization’s
Purpose or
Vision
Exploiting and
Maintaining
Core
Competencies
Developing
Human Capital
Emphasizing
Ethical
Decisions and
Practices
Effective
Strategic
Leadership
Creating and
Sustaining
Strong
Organizational
Culture
Important Factors Impacting Strategic
Management Today
The Global Economy & Globalization
Corporate Governance
E-business
Apple, Inc.
2009 Sales iPods 19% of total sales iPhones 30% of total sales
Takeaways
Why is strategic management important?
It allows individuals to work more effectively and helps improve organizational performance.
What is strategic management?
The process of analyzing the current situation, developing appropriate strategies, putting those strategies into action, and evaluating and changing those strategies as needed.
Who is involved with strategic management?
Everyone!
References
“Apple, Inc.” Hoover's Company
Records. 1 September 2010 Hoover's Company
Records, ProQuest. Web. 4 Sep. 2010
www.apple.com
"A Strategic Analysis of Apple Corporation". http://www.scribd.com/doc/11983566/A-
Strategic-Analysis-of-Apple-Corporation .
