Strategies in Today’s Environment: Applying E-Business Techniques Cost Leadership Online activities: bidding, order processing, inventory control, recruitment, and hiring Differentiation Internet-based knowledge systems, online ordering, and customer support Focus Chat rooms and discussion boards, targeted web sites Learning Objective #4 Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Customer Service Strategies Giving the customers what they want Communicating effectively with them Providing employees with customer service training Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Innovation Strategies Possible Events Radical breakthroughs in products Application of existing technology to new uses Strategic Decisions about Innovation Basic research Product development Process innovation First Mover An organization that brings a product innovation to market or uses a new process innovation Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Exhibit 7.10 First-Mover Advantages–Disadvantages Reputation for being innovative and industry leader Cost and learning benefits Control over scarce resources and keeping competitors from having access to them Opportunity to begin building customer relationships and customer loyalty Disadvantages Uncertainty over exact direction technology and market will go Risk of competitors imitating innovations Financial and strategic risks High development costs Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Summary and Implications What is strategic management? Is that set of managerial decisions and actions that determines the long-run performance of an organization What are the steps in strategic management? Is a six-step process that encompasses planning, implementation and evaluation Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada

Summary and Implications What kinds of strategies can managers use? Three types of organizational strategy: corporate, business and functional How does today’s dynamic environment affect strategic management? Managers face more uncertainty and risk and greater change in today’s continually changing environment, making it necessary to scan the environment more frequently and adjust strategy accordingly Chapter 7, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada