Read the summary and the most important questions on Strategic Management IBMS

• 1 Lecture 1 What is Strategic Management?

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• Four characteristics of Strategic Management:

  · Interdisciplinary:
  o It focuses on the whole organization, rather than any functional part.
  
  · External focus:
  o Economy
  o Competitors
  o Market Demographics.
  
  · Internal focus:
  o Understands the resources and capabilities the organization does or does not have.
  
  · Future oriented:
  o Decisions
  o Planning
  o Shifts or changes in products or markets.

• The process (basic activities) of Strategic Management:

  · Situation Analysis:
  o Scanning and evaluating the current organizational context
  o and external and internal environments.
  
  · Strategy Formulation:
  o Developing and then choosing appropriate strategies.
  
  · Strategy Implementation:
  o Putting strategies into action.
  
  · Strategy Evaluation:
  o Evaluating the implementation and outcomes of strategies.

• Strategic Management in Action:

  · The Strategic Management process is a continuous cycle:
  o It is not a sequential process
  o It allows for analysis of the current situation
  o Enables adjustments to current strategies as necessary, to pursue and achieve goals.

• Strategic Management: Who is involved, who does it concern?

  · Strategic Management is more than the responsibility of top managers
  · People at all levels play a role in strategy, and can have strategic responsibilities concerning:
  o Development Generating, making, forming, growing a plan of action
  o Implementation Putting strategies into action
  o Evaluation Determining if strategies are working
  o Changing Adjusting strategies to achieve desired goals.

• Six key dimensions of Leadership:

  · Effective Strategic Leadership:
  o Determining the purpose or vision of an organization
  o Exploiting and maintaining core competencies
  o Developing human capital
  o Creating and Sustaining a strong organizational culture
  o Emphasizing ethical decisions and practices
  o Establishing appropriate balanced controls.
  
  
  

• 2 Lecture 2 The current organization context

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• Industry and Organizational view (I/O) - Input & Output view:

  · Focusses on structural forces within an industry
  · The competitive environment of firms
  · And how these influences competitive advantage
  · Involves understanding what makes an industry attractive,
  · Choosing an attractive industry in which to compete
  · And choosing an appropriate competitive position within that industry.

• Organizational Resources as Competitive Advantage:

  · Does it add value?
  · Is it rare?
  · Is it hard to duplicate and substitute?
  · Can the organization exploit it?

• Characteristics of organizations resources:

  Value: does it add value in terms of generating and flowing revenues?
  Rare: are they valuable and unique resources, and not possessed by competitors?
  Ability to exploit: does it offer capabilities and offer opportunities?
  Resources are not static: continually building and maintaining resources.

• Competitive advantage is temporary:

  o I/O looks at the external environment, particularly the industry and competitors.
  o RBV looks inside the organization for unique resources and capabilities to be exploited.
  o Guerrilla View recognizes the dynamic environment makes competitive advantage temporary.

• Characteristics of World Class Organizations:

  o Strong Customer Focus
  o Continual Learning and improvement
  o Flexible Organization Structure
  o Creative Human Resource Management
  o Egalitarian Climate
  o Significant Technological Support.