Bài giảng Strategic Management - Chapter 1: Strategic Management: Creating Competitive Advantages

Strategic Management: Creating Competitive Advantageschapter 1Two Perspectives of LeadershipLeader is the key force in the organization’s successi.e. Steve JobsExternal forces determine the organization’s successi.e. economic downturnsRomantic ViewExternal Control Perspective1-*OR?Defining Strategic ManagementStrategic Management involvesAnalysisStrategic goals (vision, mission, strategic objectives)Internal and external environmentDecisionsWhat industries should we compete in?How should we compete in those industries?ActionsAllocate necessary resourcesDesign the organization to bring intended strategies to reality1-*Two Fundamental QuestionsHow should we compete in order to create competitive advantages in the marketplace?How can we create competitive advantages in the marketplace that are unique, valuable, and difficult for rivals to copy or substitute?NOTE: Operational effectiveness is not enough to sustain a competitive advantage.1-*Strategic ManagementKey Attributes of strategic managementDirects the organization toward overall goals and objectives.Includes multiple stakeholders in decision making.Needs to incorporate short-term and long-term perspectives.Recognizes trade-offs between efficiency and effectiveness.1-*1-*Strategic Management Trade-offsFocusing on short-term efficiencyAligning resources to take advantage of existing product marketsFocusing on long-term effectivenessExpanding product-market scope by proactively exploring new opportunitiesManagers need to be ambidextrousWhile alsoIntended vs Realized StrategiesOrganizational decisions are determined only by analysisIntended strategy rarely survives in its original formDecisions are determined by both analysis (deliberate) & unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences (emergent)Intended StrategyRealized Strategy1-*The Business Environment is far from predictable.versusStrategic Management Process1-*Exhibit 1.3 The Strategic Management ProcessStrategy AnalysisStarting point in the strategic management processPrecedes effective formulation and implementation of strategiesInvolves careful analysis of the overarching goals of the organizationRequires a thorough analysis of the organization’s external and internal environment1-*Strategy FormulationBased on strategy analysisDeveloped at several levelsInvolves decisions that can create and sustain competitive advantageInvestment decisionsCommitment of resourcesOperational synergiesRecognizing viable opportunities1-*Strategy ImplementationImplements the formulated strategyEnsures proper strategic control systemsEstablishes an appropriate organizational design - coordinates & integrates activities within the firmCoordinates activities with suppliers, customers, alliance partnersLeadership ensures organizational commitment to excellence & ethical behaviorPromotes learning & continuous improvementActs entrepreneurially in creating new opportunities1-*Corporate Governance & Stakeholder ManagementCorporate Governance: the relationship among various participants in determining the direction and performance of corporations.Primary participants:The shareholdersThe management (led by the Chief Executive Officer)The Board of Directors (BOD)1-*Stakeholder Management1-*Exhibit 1.5 An Organization’s Key Stakeholders & the Nature of Their ClaimsSocial ResponsibilitySocial responsibility: the expectation that businesses or individuals will strive to improve the overall welfare of society.Firms have multiple stakeholders and must go beyond a focus solely on financial resultsFirms must create shared value – identify & expand connections between societal & economic progressFirms can measure a triple bottom line Assessing financial, social, AND environmental performance Embracing environmental sustainability.1-*Coherence in Strategic DirectionOrganizations express priorities best through stated goals & objectives that form a hierarchy of goalsVision – evokes powerful & compelling mental images of a shared futureMission – encompasses the organization’s current purpose, basis of competition, & competitive advantageStrategic objectives – operationalize the mission statement with specific yardsticks1-*Coherence in Strategic DirectionExhibit 1.6 A Hierarchy of Goals1-*