1. © 2006 by Nelson, a division of Thomson Canada Limited.1-1 Strategic Management & Strategic Competitiveness Chapter One

2. © 2006 by Nelson, a division of Thomson Canada Limited.1-2 Chapter 5 Bus. - Level Strategy Chapter 6 Competitive Dynamics Chapter 7 Corp. - Level Strategy Chapter 9 International Strategy Chapter 10 Cooperative Strategies Chapter 8 Acquisitions & Restructuring Chapter 11 Corporate Governance Chapter 12 Structure & Control Chapter 13 Strategic Leadership Chapter 14 Entrepreneurship & Innovation Strategic Inputs Strategic Actions Strategic Outcomes Chapter 4 Internal Environment Chapter 3 External Environment Strat. Intent Strat. Mission The Strategic. Management. Process Strategy Formulation Strategy Implementation Strategic Competitiveness Chapter 1 Above Average Returns Chapter 2 Feedback Strategic Competitiveness Chapter 1

3. © 2006 by Nelson, a division of Thomson Canada Limited.1-3 What is Strategy? “A unified, comprehensive, and integrated plan designed to ensure that the basic objectives of the enterprise are achieved.” (Glueck, 1980:9) “The pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.” (Quinn, 1980) “A good strategy… neutralizes threats and exploits opportunities while capitalizing on strengths and avoiding or fixing weaknesses.” (Barney, 1997:17) “A pattern of resource allocation that enables firms to maintain or improve their performance.

4. © 2006 by Nelson, a division of Thomson Canada Limited.1-4 Intended, Emergent and Realized Strategies

5. © 2006 by Nelson, a division of Thomson Canada Limited.1-5 Alternative Models of Superior Returns Industrial Organization Model The External Environment An Attractive Industry Strategy Formulation Assets and Skills Strategy Implementation Superior Returns Resource- Based Model Resources Capabilities Competitive Advantage An Attractive Industry Strategy Implementation Superior Returns O I O I

6. © 2006 by Nelson, a division of Thomson Canada Limited.1-6 The Global Economy One in which goods, services, people, skills, and ideas move freely across geographic borders

7. © 2006 by Nelson, a division of Thomson Canada Limited.1-7 Technology and Technological Change Increasing rate of technological change and diffusion Perpetual innovation The information age Personal computers, cellular phones, artificial intelligence, virtual reality, massive databases, electronic networks, e-business Increasing knowledge intensity Information, intelligence, expertise, strategic flexibility.

8. © 2006 by Nelson, a division of Thomson Canada Limited.1-8 Internally focused, it is the leveraging of a firms resources, capabilities, and core competencies to establish the firms goals in the competitive environment. Strategic Intent Together, strategic intent and strategic mission yield the insights required to formulate and implement strategies. Externally focused, it is a statement of a firms unique purpose and the scope of it’s operations in product and market terms. Strategic Mission

9. © 2006 by Nelson, a division of Thomson Canada Limited.1-9 Stakeholders