1. CHAPTER 1 Basic Concepts of Strategic Management (continued)
CONCEPTS IN STRATEGIC MANAGEMENT & BUSINESS POLICY 12TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
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2. Environmental Scanning Defined
Monitoring, evaluation, and disseminating information from external and internal environments to key people in the firm
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3. Environmental Variables
Basic Concepts of Strategic Management
Environmental Variables
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4. Strengths – Weaknesses Opportunities – Threats
Environmental Scanning
SWOT Analysis
Strengths – Weaknesses
Opportunities – Threats
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5. Strategy Formulation
Developing long-range plans for effective management of opportunities and threats in light of corporate strengths and weaknesses
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6. Purpose/reason for organization Promotes shared expectations
Strategy Formulation – How to Codify a Strategy
Mission Statement
Purpose/reason for organization
Promotes shared expectations
Communicates public image
Who we are; what we do; what we aspire to
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7. Organization “fit” with environment Theory of population ecology
Organizational Adaptation
Organization “fit” with environment
Theory of population ecology
Institution theory
Strategic choice perspective
Organizational learning theory
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8. Strategic flexibility
Organizational Adaptation
Strategic flexibility
Demands long-term commitment to development of critical resources
Demands firm become a learning organization
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9. Learning Organizations
An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights
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10. Systematic problem solving New approach experimentation
Learning Organizations
4 Chief Activities
Systematic problem solving
New approach experimentation
Learning from experiences
Intra-organization knowledge transfer
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11. Hierarchy of Strategy Basic Concepts of Strategic Management
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12. Corporate Goals/Objectives
Profitability (net profit)
Growth
Resource utilization (ROE, ROI)
Market leadership
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13. 3 Types of Strategy Corporate strategy Business strategy
Basic Concepts of Strategic Management
3 Types of Strategy
Corporate strategy
Business strategy
Functional strategy
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14. Corporate Strategy seeks one of these:
Basic Concepts of Strategic Management
Corporate Strategy seeks one of these:
Stability
Growth
Retrenchment
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15. Business Strategy Competitive strategies Cooperative strategies
Basic Concepts of Strategic Management
Business Strategy
Competitive strategies
Cooperative strategies
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16. Functional Strategy Technological leadership
Basic Concepts of Strategic Management
Functional Strategy
Technological leadership
Technological followership
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17. Strategic Decision-Making Process
Basic Concepts of Strategic Management
Strategic Decision-Making Process

18. Strategic Decisions Rare Consequential Directive
Strategic Decision Making
Strategic Decisions
Rare
Consequential
Directive
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19. Mintzberg’s Modes Entrepreneurial mode – CEO-driven
Strategic Decision Making
Mintzberg’s Modes
Entrepreneurial mode – CEO-driven
Adaptive mode – ‘muddling through’
Planning mode – process-driven
Logical incrementalism - mixture
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20. 5 Elements of Good Strategy
Hambrick and Fredrickson – Good Strategy
5 Elements of Good Strategy
Arenas
Vehicles
Differentiators
Staging
Economic logic
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