Introduction to Strategic Management

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Introduction to Strategic Management

• Wright, Kroll Parnell
• Chapter 1

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What is strategic management?

• Strategy
• A plan to attain outcomes consistent with the
  organizations mission and goals.
• Strategic management
• The management activities involved in
• Determining the mission/goals of the organization
• formulating (developing) the strategy
• implementing (putting into action) the strategy
• controlling the strategy through modifications to
  the strategy or its implementation to ensure
  missions/goals are accomplished

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The Design School Model of Strategy Formulation
External Appraisal
Internal Appraisal
Environmental Threats Opportunities
Organizational Strengths Weaknesses
Key Success Factors
Distinctive Competencies
Strategic Options
Evaluation Choice of Strategy
Social Responsibility
Managerial Values
Implementation
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Why study strategic management?

• Employees at all levels of the organization are
  involved in implementing strategy. The better
  our understanding of strategic issues, the better
  able we are to effectively implement strategy at
  whatever level we work.
• Increasingly, we are becoming a nation of
  investors. Sound investment decision making
  requires an understanding of strategy.

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Developmental influences on strategic management

• Theories of evolution revolution
• Darwin I/O Theory (environments require
  adaptation, change is gradual, organizations must
  conform to environmental requirements)
• Chamberlain
• Concept of differentiation
• Contingency Theories
• Success a joint outcome of environmental forces
  and strategic actions
• Resource Based View

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Strategic Decisions

• CEO is ultimately responsible for strategic
  decision making
• Many others play direct and/or indirect roles and
  influence these decisions
• Strategic decisions are
• complex involving multiple disciplines
  viewpoints
• significant involving allocation of significant
  resources
• long-range involving many years

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Strategy as a continuous process
The realized strategy is usually both MORE AND
LESS than the strategy that was originally
intended. - Miller, p. 35 No plan ever survives
contact with the enemy. - Gen. Colin Powell
Deliberate Strategy
Realized Strategy
Intended Strategy
Environment, Serendipity, Unplanned Actions at
Various Organizational Levels, etc., Results in
Emergent Strategy(ies)
Unrealized (Discarded) Strategy