Professional Documents
Culture Documents
Strategies
Organizing Themes
• Global considerations impact virtually
all strategic decisions.
• E-commerce has become a vital
strategic management tool.
• The natural environment has become
an important strategic issue
Strategic Management Defined
• Art and science of formulating,
implementing, and evaluating cross-
functional decisions that enable an
organization to achieve its objectives
Strategic-Management Process
Strategic-
Three Stages
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Strategy Formulation
Long-Term Objectives
Alternative Strategies
Strategy Selection
Ch. 1-5
Strategy Implementation
Annual Objectives
Policies
Motivate Employees
Resource Allocation
Ch. 1-6
Strategy Evaluation
Review
External & Internal
Measure Performance
Corrective Action
Ch. 1-7
Key Strategic Management Terms
(Cont’d)
1. Strategists
2. Vision statements
3. Mission statements
4. External opportunities and threats
5. Internal strengths and weaknesses
Ch. 1-8
Key Strategic Management Terms
(Cont’d)
6. Long-term objectives
7. Strategies
8. Annual objectives
9. Policies
Ch. 1-9
Strategic Management Terms
(Cont’d)
Strategists
• Usually found in high levels of management
(CEO)
Ch. 1-11
Economic
Social
Cultural
Demographic
Environmental
Ch. 1-12
Political
Governmental
Technological
Competitive trends & events
Ch. 1-13
Ch. 1-17
Ch. 1-18
Ch. 1-19
Ch. 1-21
External
Audit
Chapter 3
Chapter 2
Internal
Audit
Chapter 4
Ch. 1-22
High-Performing Firms
Systematic planning
Fluctuations in external and internal environments
Ch. 1-24
Ch. 1-26
• Fear of failure
• Overconfidence
• Prior bad experience
• Self-interest
• Fear of the unknown
• Suspicion
Ch. 1-27
Ch. 1-29
• Misleading advertising
• Misleading labeling
• Environmental harm
• Poor product or service safety
• Padding expense accounts
• Insider trading
• Dumping flawed products on foreign markets
Ch. 1-32
Ch. 1-34
Ch. 1-35
Foreign-based competitors
• Strengths underestimated
• Weaknesses overestimated
Ch. 1-36
Ch. 1-37
Ch. 1-38
Organizing Themes
Ch. 1-39