Chapter 1 Basic Concepts of strategic Management

what is a triggering event?

a triggering event is something that acts a stimulus for a change in strategy

what are the three benefits of Strategic management

1. A clearer sense of strategic vision for the firm 2. A sharper focus on what is strategically important 3. An improved understanding of a rapidly changing environment

What is population Ecology

Population ecology suggest that once an organization is successfuly established in a particular evironmental niche it is unable to adapt to changing condititions.

what is the difference between Population Ecology and Organizational Learning

the difference is population ecology is an organization is unable to adapt to new environment and meanwhile organizational adjust itself to adapt to new evironment with their knowledge.

what is Business Strategy?

usually occurs at the business unit or product level and it emphasizes improvement of the competitive of a corporation's products or services in the specific industry or market segment served by that business unit.

What is functional strategy?

strategy by which managers in specific areas decide how best to achieve corporate goals through productivity

What is the definition of MISSION?

mission is the purpose or reason for the organization existence.

how many basic element the strategic management consist of

the strategic management model consist of four basic element: - Environmental Scanning - Strategy Formulation -Strategy Implementation - Evaluation and control

What is Strategic formulation?

the process of investigation, analysis, and decision making that provides the company with the criteria for attaining a competitive advantage. - Mission -Objectives - Strategies - Policies

Number 3 Triggering Event

Threat of a change in ownership- Another firm may initiate a takeover by buying a company's common stock

Number 5 Triggering Event

Strategic Inflection Point- its what happens to a business when a major change takes place due to the introduction of new technology, a different regulatory environment, a change in customers values, or a change in what customers prefer.

Number 4 Triggering Event

Performance gap- it exist when performance does not meet expectation. sales and profitss either are no longer increasing or may even be falling

Number 2 Triggering Event

External Intervention- A firm's bank suddendly refueses to approve a new loan or suddently demands payment in full on an old one . a key customer complains about serious product defect.

what is environmental scanning( gathering Information)

Monitoring and evaluating and disseminating(spread) of information from External and Internal environments to key people withing the corporation -- SWOT Analysis External: Oppotunities and Threaths -Natural environment (Resources and climate) -Societal environment (General forces) -Task Environment (Industry analysis) Internal: Strenght and Weaknesses - Structure (chain of commands) -Culture (Beliefs, expectations, values) -Resources (Assets,skills, compentencies,knowledge)

Number 1 Triggering Event

New CEO- by asking a series of embarrassing questions a new CEO cuts trough the veil of complacency(smug) and forces people to question the very reason for the corporation's existence.

What is corporate Strategy?

a corporate strategy describes a company's overall direction in terms of its general attitude towars growth and the management of its various businesses and product lines -Stability - growth -retrechement

what is the definition of strategy?

a course of action designed to help you reach a specific goal a strategy of a corporation forms a comprehensive master approach that states how the corporation will achieve its mission and objectives.

What is an Organizational learning theory

an organizational learning theory means that anorganization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and the environment

what does the strategic management model explain

it explain that the model is both rational and prescriptive. it is a planning model that present what a corporation should do in term of the strategic management process, not what any particular firm may actually do.