Académique Documents
Professionnel Documents
Culture Documents
Chapter 1
Strategic Management
Chapter Topics
What is Strategy?
• Strategic issues
• Require top-management decisions
• Require large amounts of the firm’s resources
• Often affect the firm’s long-term prosperity
• Are future oriented
• Usually have multifunctional or multibusiness
consequences
• Require considering the firm’s external
environment
1. Corporate level
2. Business level
3. Functional level
Corporate/
business level
Functional Level
POM/R&D Financial/ Marketing Human
strategies accounting strategies relations
strategies strategies
Corporate
strategies
Business Level
Business 2 Business 3
Business 1
Financial/ Human
POM/R&D Marketing
Functional Level
accounting relations
strategies strategies
strategies strategies
Greater risk,cost,
and profit potential
Involve action-oriented
Functional- operational issues
level
decisions Are relatively short range
and low risk
• Definition
• Degree to which participants, responsibilities,
authority, and discretion in decision making are
specified
• Forces affecting degree of formality
• Size of organization
• Predominant management styles
• Complexity of environment
• Production process
• Problems
• Purpose of planning system
Possible?
External
Internal analysis
environment
Desired?
Long-term
Generic and grand strategies
objectives
Restructuring, reengineering
and refocusing the organization
Legend Strategic control and
Major impact continuous improvement
Minor impact
• Long-term Objectives
Profitability
Return on investment
Competitive position
Technological leadership
Productivity
Employee relations
Public responsibility
Employee development
• Generic Strategies
• Low cost
• Differentiation
• Focus
• Grand Strategies
• Comprehensive, general plan of major
actions through which the firm intends to
achieve its long-term objectives in a
dynamic environment