1. The Need for Strategy
Chapter 1

2. Learning Objectives Today's two strategic imperatives.
Define "strategy" and the 5 questions which frame the field.
Evolution and the importance of strategy in business.
Connect strategy with ethics and leadership.
Describe the strategy process.

3. Today’s Strategic Imperatives
Opportunity Recognition
Value Creation
Technology, "big data," rapid communication
Globalization
Ease of access to finance & markets
24/7 pace of work
Rapid change & evolving conditions
Balance between continuity and change

4. Strategy: Deliberate & Emergent
(Source: Mintzberg & Waters, 1985)

5. Five Questions Define Strategy
Why are firms different?
How are competitive differences sustained?
What is special about strategic decisions?
What is the nature of strategy in a multi- divisional firm?
How is strategic effectiveness measured?

7. Why are strategic decisions special?
Ill-structured and non-routine
Significantly affect all departments in firm
Involve significant resource commitments over time
Involve making a clear choice among alternatives
Are difficult to reverse
Are easily identified with success or failure

8. How is strategy effectiveness measured?
Financial performance metrics
Qualitative assessments
Stakeholder goals (external and internal)
Important dimensions (see Chapter 2)
Summary performance of firm
Relative to competition
Over the long run

9. History of Strategy Sun Tzu, 550 BC, "The Art of War"
Pericles, 450 BC, "Strategos" (art of the general)
Early 1900s – Large firms emerged, management removed from laborers
1962 – Alfred Chandler, "Strategy & Structure"
1970s-80s – Loss of U.S. competitiveness

10. Vision, Ethics, Leadership
Managing for the long term
Pressures in the short term
Performance for stockholders
Performance for stakeholders
Leadership at the top
Leadership from the bottom

11. Strategic Management Process