Chapter 1 Mastering Strategy
Strategy as perspective
How executives interpret the competitive landscape around them.
Strategic Management
building a careful understanding of how the world is chaining, as well as knowledge of how those changes might affect a particular firm
A business model
describes the process through which a firm hopes to earn profits -providing customers with a good or service more cheaply that it cost to create
Strategy Formulation
developing specific strategies and actions
Two pivotal events that established strategic management as a field of study in 1980
1. creation of the Strategic Management Journal 2. publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors
Lessons learned from military strategy
1. good strategies simply cannot overcome a stronger adversary 2. don't repeat past mistakes 3. do not make assumptions about what your adversary can and cannot do
Strategy In Ancient Times
1. moses delegating authority to other leaders 2. Sun Tzu - winning battle without fighting 3. Trojan horse 4. King Authur - round table
Strategic Management Process
1. understand strategy and performance 2. environmental and internal scanning 3. strategy formulation 4. strategy implementation
SWOT analysis
A classic management tool that incorporates the idea of scanning elements both externally and internally is ______
predictable
A consistent pattern can make a company too
Franchising
An organization (called a franchisor) grants the right to use its brand name, products, and processes to other organizations (known as franchisees) in exchange for an up-front payment (a franchise fee) and a percentage of franchisees' revenues (a royalty fee).
creativity
Formal tools are not enough; _____ is just as important to strategic management
5 Ps of strategy
Plan - steps that a firm intends to follow in order to be successful Ploy - move designed to outwit or trick competitors Pattern - the degree of consistency in a firms strategic action Position - a firms place in the industry relative to its competitors Perspective - how executives interpret the competitive landscape around them
pattern
Strategy as _____ is a third way to view strategy; This view focuses on the extent to which a firms actions over time are consistent
SWOT Analysis
Strengths & weaknesses (internal), opportunities & threats (external)
True
T/F Deciding what a firm is not going to do is just as important to strategy as deciding what it is going to do
true
T/F each of the 5 p's of thinking about strategy is necessary for understanding what strategy is, but none of them alone is sufficient to master the concept
maintaining flexibility
_____ ________ is wise for individuals planning their career strategies as well as for firms
Nonrealized Strategy
abandoned parts of the intended strategy
Strategy Implementation
entails crafting and effective organizational structure and corporate culture
unique and positive
executives who adopt ______ and _____ perspectives can lead firms to find and exploit opportunities that others imply miss
Strategic Management Examines
how actions and events involving top executives, firms, and industries, influence a firms success or failure.
Environmental and Internal Scanning
managers must constantly scan the extern man environment for trends and events that affect the overall economy and they must monitor changes in their particular industry
business model
should be a central element of a firms strategic plan
Realized Strategy
the strategy that an organization actually follows, a product of a firms intended strategy (what the firms planned to do), the firms deliberate strategy (the parts of the intended strategy that the firm continues to pursue over time), and it's emergent strategy (what the firm did in reaction to unexpected opportunities and challenges).
Intended Strategy
the strategy that an organization hopes to execute. Usually described in detail within an organizations strategy plan
Emergent Strategy
unplanned strategy that arises in response to unexpected opportunities and challenges
