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Strategic
Leadership:
Managing the
Strategy-
Making
Process for
Competitive
Advantage
Why do some organizations
succeed while others fail?
Strategy is a set of related actions that managers
take to increase their company’s performance.
Strategic Leadership
• Task of most effectively managing a
company’s strategy-making process
Strategy Formulation
• Task of determining and selecting strategies
Strategy Implementation
• Task of putting strategies into action to improve a
company’s efficiency and effectiveness
Competitive Advantage
Results when a company’s strategies lead to
superior performance compared to competitors
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Company’s Business Model
Management’s model of how strategy will allow
the company to gain competitive advantage
and achieve superior profitability
A business model encompasses how the company will:
• Select its customers • Deliver those goods and
• Define and differentiate services to the market
its product offerings • Organize activities within
• Create value for its the company
customers • Configure its resources
• Acquire and keep • Achieve and sustain a
customers high level of profitability
• Produce goods or • Grow the business over
services time
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Performance in Nonprofit
Enterprises
Nonprofit entities such as government
agencies, universities, and charities:
• Are not in business to make a profit
• Should use their resources efficiently
and effectively
• Set performance goals unique to the
organization
• Set strategies to achieve goals and compete
with other nonprofits for scarce resources
A successful strategy gives potential
donors a compelling message as to
why they should contribute.
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The Five Steps of the
Strategy Making Process
Select the corporate vision, mission, and values
and the major corporate goals and objectives.
Analyze the external competitive environment to
identify opportunities and threats.
Analyze the organization’s internal environment
to identify its strengths and weaknesses.
Select strategies that:
• Build on the organization’s strengths and correct its
weaknesses – in order to take advantage of external
opportunities and counter external threats
• Are consistent with organization’s vision, mission, and values
and major goals and objectives
• Are congruent and constitute a viable business model
Implement the strategies.
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Strategic Managers
Corporate Level Managers
• Oversee the development of strategies for the
whole organization
• The CEO is the principle general manager who
consults with other senior executives
General Managers
• Responsible for overall company, business
unit, or divisional performance
Functional Managers
• Responsible for supervising a particular task
or operation
e.g. marketing, operations, accounting, human resources
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Levels of Strategic Management
Figure 1.3