1. 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

2. 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

3. 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

4. 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

5. 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

6. 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