Session 2
Strategic Management
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Questions?
Strategic management concepts
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Strategy: meaning, perspective, & value
Strategic management process
Levels of strategy
Application of concepts to Wal-Mart and
Costco
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BA 490 Strategic Management
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Assignment for Session 2
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Review the syllabus
Check out the course web site
Study H&W Ch 1 Basics of strategic management
Prepare to discuss the following questions on the Wal-Mart and
Costco articles (available online through course web site).
1.
2.
3.
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How do the strategies for Wal-Mart and Costco differ?
In what areas do their goals differ? Use the list of areas at the
top of page 7 in H&W.
Distinguish the three elements of the hierarchy of strategy for each
company, e.g., give an example of each level of strategy.
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Strategy—what is it?
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Strategy: a plan for interacting with the
competitive environment to achieve
organizational goals (Daft, 2001)
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Major elements of strategy
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Strategy formulation--development of longrange plans for the effective management of
environmental opportunities and threats,
taking into account strengths and weaknesses
Strategy implementation--Process by which
strategies and policies are put into action
through the development of programs,
budgets, and procedures
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BA 490 Strategic Management
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Strategy—where is its focus?
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External—to determine
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What the firm seeks to be
What it seeks to accomplish (overall goals and objectives)
Opportunities and threats in the environment
The path it will take to succeed within the environment
Internal—to determine
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Capabilities, i.e., strengths and weaknesses
The design of the organization
Supporting functional (organizational)
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objectives
strategies
plans
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Strategic management process
Reference Fig. 1.3
 Environmental scanning
 Strategy formulation
 Strategy implementation
 Evaluation and control
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How do the strategies of Wal-Mart
and Costco differ?
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In what areas do their goals differ?
Use the list of areas at the top of page 7 in H&W.
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Profitability
Efficiency
Growth
Stockholder wealth
Utilization of resources
Reputation
Contributions to employees
Contributions to society
Market leadership
Survival
Personal needs of management
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In what areas do their goals differ?
Area
Costco
Wal-Mart
Profitability
Efficiency
Growth
Stockholder wealth
Utilization of resources
Reputation
Contributions to employees
Contributions to society
Market leadership
Survival
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Distinguish the three elements of the
hierarchy of strategy for each company.
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Corporate
Business
Functional
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Marketing
Finance
Operations
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The Generic Value Chain
Support
Activities
Firm infrastructure
Human resource management
Technology Development
Procurement
MarketOutServing
Inbound Operabound
ice
Logistics tions
and
Logistics
sales
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BA 490 Strategic Management
Primary
Activities
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Strategy Exercise
Question
Response
Eval.
(A to F)
What is their strategy?
Who or what do they seek to
be?
What do they seek to
accomplish?
How will they pursue their
goals & objectives?
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Give an example of each level of strategy
Corporate
Business
Functional
What functional
strategies are key to
success?
What supporting
functional objectives can
you discern or suggest?
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Review questions
1.
2.
3.
4.
What is strategic management & why
does it matter?
What are the major steps in the
strategic management process.
Identify the 3 levels of strategy in the
hierarchy of strategy.
What distinguishes each level of
strategy?
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Assignment for session 3
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Reading Packet 1:
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Organizational effectiveness--the basis for deciding
A brand called you article
Prepare to discuss the following based on the
readings and Amazon article (available online through
course web site). (Quiz likely)
1. What is organizational effectiveness and how can it be
measured?
2. Is Amazon effective? Justify your response using the
organizational effectiveness concepts in the reading.
3. What does the Brand Called You article suggest you do to
further your career?
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