1,Strategic Management in Action,Introducing the Concepts,Learning Objectives,1. Discuss why strategic management is important.,2. Define strategy and strategic management. 3. Describe the strategic management process. 4. Describe the three levels of organizational strategies. 5. Explain the historical evolution of strategic management. 6. Rebut misconceptions about strategy and strategic management. 7. Explain whos involved with strategic management and their role in managing strategically.,WHY IS STRATEGIC MANAGEMENT IMPORTANT?,Strategic Management ,Gives everyone a role Makes a difference in performance levels Provides systematic approach to uncertainties Coordinates and focuses employees,WHAT IS STRATEGIC MANAGEMENT?,Strategy vs. Strategic Management,The Basics of Strategy & Strategic Management,Definition of Strategy ,A series of goal-directed decisions and actions,matching an organizations skills and resources,with the opportunities and threats in its environment,The Basics of Strategy & Strategic Management,Strategy Involves: ,Organizations goals Goal-directed action Related decisions and actions Internal strengths External opportunities and threats,The Basics of Strategy & Strategic Management,Definition of Strategic Management Decisions and actions where organizations ,Analyze current situation Develop appropriate strategies Put strategies into action Evaluate, modify, or change strategies,The Basics of Strategy & Strategic Management,Strategic Management entails: ,Basic managerial functions Planning Organizing Implementing Controlling,Basic Activities of Strategic Management Figure 1-1,The Basics of Strategy & Strategic Management,Strategy Formulation,Strategy Implementation,Strategy Evaluation,The Basics of Strategy & Strategic Management,Strategic Management “Big picture” view of organization influenced by its external environment,Four aspects that set apart Strategic Management,Interdisciplinary,External focus,Internal focus,Future direction,The Strategic Management Process,Analyzing Current Situation,Deciding on Strategies,Putting Strategies in Action,Evaluating and Changing Strategies,Situation Analysis,Strategy Formulation,Strategy Implementation,Strategy Evaluation,Chapter 2,Chapter 3,Chapter 4,External Analysis,Internal Analysis,Organizational Context,Chapter 5,Chapter 6,Chapter 7,Functional,Competitive,Corporate,Strategic Management in Action Figure 1-2,The Strategic Management Process,Situation Analysis ,Scanning and evaluating context External environment Organizational environment,The Strategic Management Process,Strategy Formulation Three organizational levels ,Functional strategies Competitive strategies Corporate strategies,The Strategic Management Process,Strategy Implementation ,Process of putting strategies into action Strategy Evaluation,Process of evaluating:,How the strategy has been implemented Outcomes of the strategy,The Strategic Management Process,Continuing Process of Strategic Management in Action Ongoing and continuous cycle of ,Strategy formulation Strategy implementation Strategy evaluation,Looking at Strategic Managements Past,Strategys Military Roots ,Battlefield strategies to gain an edge Exploit weak spots Academic Origins of Strategic Management Economic theory Early organizational studies,Looking at Strategic Managements Past,Strategic Planning & Strategic Management Emerge ,Before 1960 Not an area of study,During the 1960s Strategy and Structure Corporate Strategy Business Policy: Text and Cases,During the 1970s and 1980s Becomes distinct academic field Research focus on strategic decisions vs. performance,Misconceptions About Strategy and Strategic Management,Misconceptions ,Strategy and strategic planning are dead Strategy is strictly for top management Strategy is about planning Strategy is stable and constant Strategic management outlines ultimate destination & route,WHOS INVOLVED WITH STRATEGIC MANAGEMENT?,The Role of the Board of Directors ,Elected representatives of the companys stockholders Legally obligated to represent and protect stockholders interest The Role of Top Management Responsible for every decision and action of every employee Providing effective leadership Other Strategic Managers and Organizational Employees Implement put the strategies into action and monitor performance Evaluatedo the actual evaluations and take necessary actions Open book management,The Role of the Board of Directors,Table 1-2 Typical Board Responsibilities, ,Review and approve strategic goals and plans Review and approve organizations financial standards and policies Ensure integrity of organizations financial controls and reporting systems Approve an organizational philosophy Monitor organizational performance and regularly review performance results Select, evaluate, and compensate