1. History and Overview of
Session 1
History and Overview of
Strategic Management

2. Session Objectives
To Develop an Understanding of the (brief) History of Strategic Management.
To Develop a Conceptual Understanding of the Paradigm Shift from Business Policy to Strategic Management

3. Word for the Day
Paradigm

4. Ford Foundation Study During Late 40s
Need to develop a multi-disciplinary understanding of Business
Ergo a capstone course that introduces accountants to marketing, marketers to operations, production managers to human resources…
Efficiency oriented given pent up demand form WWII

5. Multi-Disciplinary
Integrative with input from an understanding of the interworkings of finance, accounting, marketing, research and development, human resources, operations, information management,… These are the functional specialties that contribute to the general management of the firm. You have studied these fundamentals separately.

6. What’s Missing in this Paradigm?
The effectiveness issue
Focuses on doing things right but not whether the business is doing the right thing
The entrepreneurial aspect of the business
Must start with the health of the key idea

7. What is the First “Strategy” for any Business?
It’s that Key Idea in the Entrepreneurs mind for
Satisfying a societal/marketplace need by
Providing/producing a product/service that will
Yield an excess of price over cost of its provision that
Incents the provider to continue/expand its delivery
(Capitalism 101)

8. WHAT IS THE LIFE EXPECTANCY OF THESE KEY IDEAS?
LONGER OR SHORTER TODAY THAN DURING THE MID 20TH CENTURY?

9. A MORE RATIONAL
PARADIGM WOULD BEGIN BY CONSIDERING THE HEALTH OF THE BUSINESS’S KEY IDEA OR KEY IDEAS
THAT’S STRATEGIC MANAGEMENT

10. What is Strategic Management?
The set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives.

11. What is Strategy?
Large-scale, future-oriented plan for interacting with competitive environment to achieve objectives
Company’s “game plan”
Framework for managerial decisions

12. SO WE WILL NOT TOTALLY ABANDON THE NOTION OF BUSINESS POLICIES – THEY ARE IMPORTANT
BUT WE WILL NOT CONSIDER POLICIES (WHICH WE WILL COME TO REFER TO AS FUNCTIONAL STRATEGIES/POLICIES) UNTIL WE’VE ESTABLISHED THAT WE ARE DOING THE RIGHT THINGS
EFFECTIVENESS BEFORE EFFICIENCY