Professional Documents
Culture Documents
Chapter 1
Chapter 1
Chapter One
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Strategic Inputs
The Strategic
Management Process
Chapter 11 Corporate Governance
Strategic Actions
Strategy Formulation
Chapter 5 Bus. - Level Strategy Chapter 6 Chapter 7 Competitive Corp. - Level Dynamics Strategy Chapter 10 Cooperative Strategies
Strategy Implementation
Chapter 12 Structure & Control
Strategic Outcomes
Feedback
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Canada is home not only to worldclass commercial competitors but to dominant companies in their industries
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Define strategic competitiveness, competitive advantage and above average returns. Describe the 21st century competitive landscape and explain how globalization and technological changes shape it. Use the industrial organization (I/O) model to explain how firms can earn above average returns. Use the resource-based model to explain how firms can earn above-average returns.
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Provides benefits which current and potential competitors are unable to duplicate.
Above-Average Returns
Returns in excess of what an investor expects to earn from other investments with similar risk.
2006 by Nelson, a division of Thomson Canada Limited. 1-6
Average returns
Returns equal to what an investor expects from other investments with similar amount of risk.
The full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
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What is Strategy? An integrated and coordinated set of commitments & actions designed to exploit core competencies and gains and gain a competitive advantage.
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What is Strategy?
A unified, comprehensive, and integrated plan designed to ensure that the basic objectives of the enterprise are achieved. (Glueck, 1980:9)
The pattern or plan that integrates an organizations major goals, policies, and action sequences into a cohesive whole. (Quinn, 1980) A pattern of resource allocation that enables firms to maintain or improve their performance. A good strategy neutralizes threats and exploits opportunities while capitalizing on strengths and avoiding or fixing weaknesses. (Barney, 1997:17)
2006 by Nelson, a division of Thomson Canada Limited. 1-11
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O I
ResourceBased Model
Resources Capabilities Competitive Advantage
An Attractive Industry
Strategy Implementation
Superior Returns
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Valuable
Allow the firm to exploit opportunities or neutralize threats in its external environment.
Possessed by few, if any, current and potential competitors.
Rare
When other firms cannot obtain them or must obtain them at a much higher cost. The firm is organized appropriately to obtain the full benefits of the resources in order to realize a competitive advantage.
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Rare
Core Competencies
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Core Competencies
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Speed to market
Innovation
Integration
Handling challenges from constantly changing conditions Hypercompetition
2006 by Nelson, a division of Thomson Canada Limited. 1-18
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Strategic Intent
Internally focused, it is the leveraging of a firms resources, capabilities, and core competencies to establish the firms goals in the competitive environment.
Strategic Mission
Externally focused, it is a statement of a firms unique purpose and the scope of its operations in product and market terms.
Together, strategic intent and strategic mission yield the insights required to formulate and implement strategies.
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Stakeholders
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Organizational strategists
Top level managers, executives, top management team, or general managers
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Organizational culture
A complex set of ideologies, symbols and core values that influence how the firm conducts its business.
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