Chapter 1: Introducing the Concepts By: Jake Alonzo Charly Cone Natalie Bohman Meredithe Marshall Michael Scott Mikey Via Virginie Charlotte Milhaud By: Jake Alonzo Charly Cone Natalie Bohman Meredithe Marshall Michael Scott Mikey Via Virginie Charlotte Milhaud

Strategic Management Importance? It makes a difference in how organizations perform. Companies that use SM are shown more likely to positively perform Continual changing situations internally and externally occur in all organizations. SM helps cope with these uncertainties Different departments and divisions must work together through coordination to achieve a mutual goal. It makes a difference in how organizations perform. Companies that use SM are shown more likely to positively perform Continual changing situations internally and externally occur in all organizations. SM helps cope with these uncertainties Different departments and divisions must work together through coordination to achieve a mutual goal.

SM dictates the process and actions of the company Ie. Gives structure to decision process model SM basically helps ensure actions of various departments are coordinated with each other Ex. Kmart vs. Wal-Mart Through SM Wal-Mart has become Worlds most successful retailer Strategic Management

Key Definitions Strategy: Organization’s goal directed plans and actions to align it’s capabilities and resources with the opportunities and threats in its environment. Meaning these are goals which help the organization achieve its goals Takes in account internal strengths, threats etc. Strategic Management: process of analyzing the current situation, developing appropriate strategies, putting those strategies into action, and evaluating and changing them as needed. Analysis, formulation, implementation, evaluation Strategy: Organization’s goal directed plans and actions to align it’s capabilities and resources with the opportunities and threats in its environment. Meaning these are goals which help the organization achieve its goals Takes in account internal strengths, threats etc. Strategic Management: process of analyzing the current situation, developing appropriate strategies, putting those strategies into action, and evaluating and changing them as needed. Analysis, formulation, implementation, evaluation

Strategic Management Process Situation Analysis: scanning and evaluating the current organizational context, environment, and organizational environment. Strategy Formulation: developing and choosing appropriate strategies. Functional strategies Competitive strategies Corporate Strategies Implementation: putting various strategies into action. Evaluation: involves evaluating both the outcomes of the strategy and how it was implemented. Situation Analysis: scanning and evaluating the current organizational context, environment, and organizational environment. Strategy Formulation: developing and choosing appropriate strategies. Functional strategies Competitive strategies Corporate Strategies Implementation: putting various strategies into action. Evaluation: involves evaluating both the outcomes of the strategy and how it was implemented.

Strategic Managements Past Military Strategy Strategy comes from the Greek word strategies meaning military commander First sign of strategy. Military decision makers created strategies to find the enemies weak spots. Academic Origin It’s a very young study. All findings come from economics and organization studies. Fredrick Taylor, Max Weber, and Chester Barnard were the first to give us an insight to effective organizations and what role management played. Military Strategy Strategy comes from the Greek word strategies meaning military commander First sign of strategy. Military decision makers created strategies to find the enemies weak spots. Academic Origin It’s a very young study. All findings come from economics and organization studies. Fredrick Taylor, Max Weber, and Chester Barnard were the first to give us an insight to effective organizations and what role management played.

Strategic Managements Past Continued… Strategic Planning and Management: 1960’s everyone believed there was only one way to manage an organization Replaced that thinking with the contingency approach: each situation is different therefore the best way to manage each situation is different. Alfred Chandler, Igor Ansoff, Learned, Andrews, and Guth distinguished strategic management was its own academic field ’s studied “how” and what of strategic management. Strategic Planning and Management: 1960’s everyone believed there was only one way to manage an organization Replaced that thinking with the contingency approach: each situation is different therefore the best way to manage each situation is different. Alfred Chandler, Igor Ansoff, Learned, Andrews, and Guth distinguished strategic management was its own academic field ’s studied “how” and what of strategic management.

Who’s involved? Board Of Directors: Elected group that represents a company’s shareholders and their interests Initially took on the Approving role, now they take a more interactive role  Typical Board responsibilities: Review and approve strategic goals and plans Approve organizational philosophy Select, evaluate and compensate top managers Monitor relations with shareholders and other key stakeholders Board Of Directors: Elected group that represents a company’s shareholders and their interests Initially took on the Approving role, now they take a more interactive role  Typical Board responsibilities: Review and approve strategic goals and plans Approve organizational philosophy Select, evaluate and compensate top managers Monitor relations with shareholders and other key stakeholders

Who’s involved? Top-Level Management: They are strategists, structural architects, and developers of organization’s info/ control systems. Responsible for every decision and action of all employees  Typical Top Managers responsibilities: Determining the organization’s purpose or vision Exploiting the company’s core competencies Developing the organization’s human capital Sustaining a strong organizational culture Top-Level Management: They are strategists, structural architects, and developers of organization’s info/ control systems. Responsible for every decision and action of all employees  Typical Top Managers responsibilities: Determining the organization’s purpose or vision Exploiting the company’s core competencies Developing the organization’s human capital Sustaining a strong organizational culture

Who’s involved? Managers: Managers and employees throughout the organization are also part of the process Individuals who are in charge of a certain group of tasks, or a certain subset of a company.  Typical Managers responsibilities: Achieve business and organization goals, visions and objectives. Evaluate and implement strategies Supervise and manage the overall performance of the employees in the department. Identifying problems, creating choices and providing alternatives courses of actions. Managers: Managers and employees throughout the organization are also part of the process Individuals who are in charge of a certain group of tasks, or a certain subset of a company.  Typical Managers responsibilities: Achieve business and organization goals, visions and objectives. Evaluate and implement strategies Supervise and manage the overall performance of the employees in the department. Identifying problems, creating choices and providing alternatives courses of actions.

Global Management World Trade Organization (WTO): Global organization of 153 countries that performs trade agreements. World Bank Group: 185 member countries that provides vital financial and technical assistance to developing countries. Promotes long term economic development and poverty reduction International Monetary Fund (IMF): promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and helps maintain financial stability and strengthen economy. Some countries feel that globalization is a way for the U.S. to influence and take over. (Americanization) World Trade Organization (WTO): Global organization of 153 countries that performs trade agreements. World Bank Group: 185 member countries that provides vital financial and technical assistance to developing countries. Promotes long term economic development and poverty reduction International Monetary Fund (IMF): promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and helps maintain financial stability and strengthen economy. Some countries feel that globalization is a way for the U.S. to influence and take over. (Americanization)

Global Management Continued… Corporate Governance: how a corporation uses its resources and protects it’s stakeholders’ interests. Sarbanes-Oxley Act: new U.S. law designed to protect investors by improving accuracy and reliability of corporate disclosures. Financial Reporting: Sarbanes-Oxley requires more disclosure and transparency involving the financial statements. Senior management is now required to sign off. This can be costly for the smaller businesses. Board of Directors: Their purpose was to protect the interest of the stakeholders independently of management. However, cozy relationship between the two do exist. Sarbanes-Oxley changed this considerably. Corporate Governance: how a corporation uses its resources and protects it’s stakeholders’ interests. Sarbanes-Oxley Act: new U.S. law designed to protect investors by improving accuracy and reliability of corporate disclosures. Financial Reporting: Sarbanes-Oxley requires more disclosure and transparency involving the financial statements. Senior management is now required to sign off. This can be costly for the smaller businesses. Board of Directors: Their purpose was to protect the interest of the stakeholders independently of management. However, cozy relationship between the two do exist. Sarbanes-Oxley changed this considerably.

E-business E-business: using information and communication technologies to support all the activities of a business. E-commerce: the retailing side of e-business. Selling items over the internet Enhanced organization: A traditional company that merely uses the e-business to enhance the structure they already have. Enabled: enables members to do their work effectively and efficiently. An electronic linkage. Intranet-internal organizational communication system that uses the internet to connect employees to communicate with a global workforce. Total: whole approach to business is on the internet and other information and communication technologies. E-business: using information and communication technologies to support all the activities of a business. E-commerce: the retailing side of e-business. Selling items over the internet Enhanced organization: A traditional company that merely uses the e-business to enhance the structure they already have. Enabled: enables members to do their work effectively and efficiently. An electronic linkage. Intranet-internal organizational communication system that uses the internet to connect employees to communicate with a global workforce. Total: whole approach to business is on the internet and other information and communication technologies.

Conclusion Overview Process History Who? Global Economy E-business Overview Process History Who? Global Economy E-business