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Chapter 3 - PowerPoint PPT Presentation


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Inputs. Strategic. Strategic. Outcomes. Chapter 2. The Strategic Management Process. External. Environment. Strategic Intent. Strategic Mission. Chapter 3. Internal. Environment. Strategy Formulation. Strategy Implementation. Chapter 4. Chapter 5. Chapter 6. Chapter 10.

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Presentation Transcript
slide1

Inputs

Strategic

Strategic

Outcomes

Chapter 2

The Strategic

Management

Process

External

Environment

Strategic Intent

Strategic Mission

Chapter 3

Internal

Environment

Strategy Formulation

Strategy Implementation

Chapter 4

Chapter 5

Chapter 6

Chapter 10

Chapter 11

Business-Level

Competitive

Corporate-Level

Corporate

Structure

Strategy

Dynamics

Strategy

Governance

& Control

Actions

Strategic

Chapter 8

Chapter 7

Chapter 9

Chapter 12

Chapter 13

Entrepreneurship

& Innovation

International

Acquisitions &

Cooperative

Strategic

Strategy

Restructuring

Strategies

Leadership

Strategic

Competitiveness

Above Average

Feedback

Returns

slide2

Chapter One: Key Themes

Challenge of Strategic Management

Changing Competitive Landscape

Two Models of Superior Profitability

Industrial Organization Model

Resource-Based Model

Key Stakeholder Groups

slide3

Challenge of Strategic Management

Only 2 of the top 25 U.S. corporations in 1900 are still competitive today!

In a recent year, almost 150,000 U.S. businesses failed or filed for bankruptcy

Competitive success is transient...unless care is taken to preserve competitive position

slide4

New Competitive Landscape

Fundamental nature of competition is changing

The pace of change is relentless....

and increasing

Rapid technological changes

Rapid technology diffusions

Traditional industry boundaries are blurring...such as

Dramatic changes in information and communication technologies

Computers

Increasing importance of knowledge

Telecommunications

slide5

New Competitive Landscape

The global economy is changing

Traditional sources of competitive advantage no longer guarantee success

People, goods, services and ideas move freely across geographic boundaries

New keys to success include:

New opportunities emerge in multiple global markets

Flexibility

Innovation

Markets and industries become more internationalized

Speed

Integration

slide6

Alternative Model of Superior Returns

Industrial Organization Model

1

Resource-Based Model

2

slide7

I/O Model of Superior Returns

The Industrial Organization Model suggests that above-average returns for any firm are largely determined by characteristics outside the firm.

The I/O model largely focuses on industry structure or attractiveness of the external environment rather than internal characteristics of the firm.

slide8

Resource-Based Model of Superior Returns

The Resource-Based Model suggests that above-average returns for any firm are largely determined by characteristics inside the firm.

The Resource-Based view focuses on developing or obtaining valuable resources and capabilities which are difficult or impossible for rivals to imitate.

slide9

Strategic Intent

Winning competitive battles through deciding how to leverage internal resources, capabilities, and core competencies.

Strategic Mission

An application of strategic intent in terms of products to be offered and markets to be served.

slide10

Stock market/Investors

Debt suppliers/Banks

Primary Customers

Suppliers

Groups who are affected by a firm’s performance and who have claims on its performance

Stakeholders

The firm must maintain performance at an adequate level in order to maintain the participation of key stakeholders

Capital Market

Firm

Product Market

Organizational

Employees

Managers

Non-Managers