Learning Objectives: Chapter 1 Identify the fundamental question of strategic management List and define the 5 P’s of strategy Contrast intended, emergent, and realized strategies Describe how strategic management evolved into a field of study Summarize the strategic management process

Strategic management process

What is strategic management? Examines how actions and events involving top executives (such as Steve Jobs), firms (Apple), and industries (the tablet market) influence a firm’s success or failure Formal tools that exist for understanding these relationships are not enough Creativity is just as important to strategic management

5 P’s of Strategy A business model should be a central element of a firm’s strategic plan. A business model describes the process through which a firm hopes to earn profits.

Strategies Intended strategies: Strategy that an organization hopes to execute Deliberate strategy: The parts of the intended strategy that an organization continues to pursue over time Emergent strategies: Unplanned strategy that arises in response to unexpected opportunities and challenges Realized strategies: The strategy that an organization actually follows. They are a product of both intended and realized strategies Non-realized strategy: The parts of the intended strategy that are abandoned

Intended, Deliberate, and Realized Strategy

History of Strategic Management

Classic Military Strategy

Modern History of Strategic Management

Modern History of Strategic Management

Modern History of Strategic Management

Strategic Management Process Strategic management process: Building a careful understanding of how the world is changing and the a knowledge of how those changes might affect a particular firm Understanding strategy and performance Environmental and Internal scanning Strategy formulation Strategy implementation

Chapter 1: Key Takeaways Strategic management focuses on firms and the different strategies that they use to become and remain successful. Multiple views of strategy exist, and the 5 P’s described by Henry Mintzberg enhance understanding of the various ways in which firms conceptualize strategy. Most organizations create intended strategies that they hope to follow to be successful. Over time, however, changes in an organization’s situation give rise to new opportunities and challenges. Organizations respond to these changes using emergent strategies. Realized strategies are a product of both intended and emergent strategies. Although strategic management as a field of study has develop mostly over the last century, the concept of strategy is much older. Understanding strategic management can benefit greatly by learning the lessons that ancient history and military strategy provide. Strategic management is a process that requires the ability to manage change. Consequently, executives must be careful to monitor and to interpret the events in their environment, to take appropriate actions when change is needed, and to monitor their performance to ensure that their firms are able to survive and, it is hope, thrive over time.

Crafting Strategy (Mintzberg, 1987) Imagine someone planning strategy. What likely springs to mind is an image of orderly thinking: a senior manager, or a group of them, sitting in an office formulating courses of action that everyone else will implement on schedule. The keynote is reason-rational control, the systematic analysis of competitors and markets, of company strengths and weaknesses, the combination of these analyses producing clear, explicit, full-blown strategies. Now imagine someone crafting strategy, A whole different image likely results, as different from planning as craft is from mechanization. Craft involves traditional skill, dedication, perfection through the mastery of detail. What springs to mind is not so much thinking and reason as involvement, a feeling of intimacy and harmony with the materials at hand, developed through long experience and commitment. Formulation and implementation merge into a fluid process of learning through which creative strategies evolve.