Four Phases of

Strategic Management

1. Basic financial planning

2. Forecast-based planning
3. Externally-oriented planning
(strategic)
4. Strategic management

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ORGANIZATIONAL ADAPTATION
How organizations obtain “fit” within their environment:

– Theory of population ecology

– Institution theory

– Strategic choice perspective

– Organizational learning theory

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 Adaptation to Changing
Environmental Conditions

Strategic flexibility:

– Demands a long-term commitment to the development

and nurturing of critical resources

– Demands that the firm become a learning organization

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 Learning Organizations

Defined:
An organization skilled at creating,
acquiring, and transferring
knowledge and at modifying its
behavior to reflect new knowledge
and insights.

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 Learning Organizations
Four Main Activities:
• Solving problems systematically

• Experimenting with new approaches

• Learning from their own experiences and

that of others

• Transferring knowledge quickly and

efficiently throughout the organization
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 Strategies
3 Types of Strategy

– Corporate strategy

– Business strategy

– Functional strategy

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 Hierarchy of Strategy
Corporate Strategy

Business
(Division Level)
Strategy

Functional
Strategy

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 QUESTION
• Under what circumstances should you
review company’s strategy?
– Your suggestions please!

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 Initiation of Strategy

•New CEO

•External intervention Stimulus

for change
Triggering •Threat of change in
ownership in
event
strategy
•Performance gap

•Strategic inflection point

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 Strategic decisions
• Rare

• Consequential

• Directive

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 Strategic Decision Making
• Mintzberg’s Modes:
Entrepreneurial mode
Adaptive mode
Planning mode
Logical incrementalism

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 Question
• Out of the 4 approaches to decision
makings suggested by Mintzberg (&
Quinn) which do you think is the best?
• `Your suggestion please!

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