8theditionStevenP.RobbinsMaryCoulterPowerPointPresentationbyCharlieCookCopyright©2005PrenticeHall,Inc.Allrightsreserved.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–2LEARNINGOUTLINEFollowthisLearningOutlineasyoureadandstudythischapter.TheImportanceofStrategicManagement•Definestrategicmanagement.•Explainwhystrategicmanagementisimportant.•Discusswhatstudiesoftheeffectivenessofstrategicmanagementhaveshown.TheStrategicManagementProcess•Listsixstepsinthestrategicmanagementprocess.•Explainwhyit’simportanttoknowanorganization’smission.•Describewhatmanagersdowhentheydoexternalandinternalanalyses.•Explaintheroleofresources,capabilities,andcorecompetenciesintheinternalanalysis.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–3LEARNINGOUTLINE(cont’d)FollowthisLearningOutlineasyoureadandstudythischapter.TheStrategicManagementProcess(cont’d)•Definestrengths,weaknesses,opportunities,andthreats.•Discusswhathappensduringstrategyformulation,implementation,andevaluation.TypesofOrganizationalStrategies•Tellwhatstrategieseachlevelofmanagementistypicallyresponsiblefor.•Describethethreemajortypesofcorporatestrategies.•Explainthethreegrowthstrategies.•Discusswhenorganizationsmightpursueastabilitystrategy.•Describetworenewalstrategies.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–4LEARNINGOUTLINE(cont’d)FollowthisLearningOutlineasyoureadandstudythischapter.TypesofOrganizationalStrategies(cont’d)•DiscusstheBCGmatrixandhowit’sused.•DefineSBUsandbusiness-levelstrategies.•Describetheroleofcompetitiveadvantageinbusiness-levelstrategies.•ExplainPorter’sfiveforcesmodel.•Describethreegenericcompetitivestrategies.•Tellwhatitmeanstobestuckinthemiddle.•Definefunctional-levelstrategies.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–5LEARNINGOUTLINE(cont’d)FollowthisLearningOutlineasyoureadandstudythischapter.StrategicManagementinToday’sEnvironment(cont’d)•Discusstheimplicationsofdynamicanduncertainenvironmentsonorganizationalstrategy.•Explaintheruleofthreeanditssignificancetostrategicmanagement.•Describestrategiesapplyinge-businesstechniques.•Explainwhatstrategiesorganizationmightusetobecomemorecustomeroriented.•Describeinnovationstrategiesorganizationsmightuse.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–6StrategicManagement•Thesetofmanagerialdecisionsandactionsthatdeterminesthelong-runperformanceofanorganization.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–7WhyStrategicManagementIsImportant1.Itresultsinhigherorganizationalperformance.2.Itrequiresthatmanagersexamineandadapttobusinessenvironmentchanges.3.Itcoordinatesdiverseorganizationalunits,helpingthemfocusonorganizationalgoals.4.Itisverymuchinvolvedinthemanagerialdecision-makingprocess.Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–8StrategicManagementProcess•Step1:Identifyingtheorganization’scurrentmission,objectives,andstrategiesMission:thefirm’sreasonforbeingThescopeofitsproductsandservicesGoals:thefoundationforfurtherplanningMeasurableperformancetargets•Step2:ConductinganexternalanalysisTheenvironmentalscanningofspecificandgeneralenvironmentsFocusesonidentifyingopportunitiesandthreatsCopyright©2005PrenticeHall,Inc.Allrightsreserved.8–9StrategicManagementProcess(cont’d)•Step3:ConductinganinternalanalysisAssessingorganizationalresources,capabilities,activities,andculture:Strengths(corecompetencies)createvalueforthecustomerandstrengthenthecompetitivepositionofthefirm.Weaknesses(thingsdonepoorlyornotatall)canplacethefirmatacompetitivedisadvantage.•Steps2and3combinedarecalledaSWOTanalysis.(Strengths,Weaknesses,Opportunities,andThreats)Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–10StrategicManagementProcess(cont’d)•Step4:FormulatingstrategiesDevelopandevaluatestrategicalternativesSelectappropriatestrategiesforalllevelsintheorganizationthatproviderelativeadvantageovercompetitorsMatchorganizationalstrengthstoenvironmentalopportunitiesCorrectweaknessesandguardagainstthreatsCopyright©2005PrenticeHall,Inc.Allrightsreserved.8–11StrategicManagementProcess(cont’d)•Step5:ImplementingstrategiesImplementation:effectivelyfittingorganizationalstructureandactivitiestotheenvironmentTheenvironmentdictatesthechosenstrategy;effectivestrategyimplementationrequiresanorganizationalstructurematchedtoitsrequirements.•Step6:EvaluatingResultsHoweffectivehavestrategiesbeen?Whatadjustments,ifany,arenecessary?Copyright©2005PrenticeHall,Inc.Allrightsreserved.8–12OrganizationalStrategies•CorporateStrategiesTopmanagement’soverallplanfortheentireorganizationanditsstrategicbusinessunits•TypesofCorporateStrategiesGrowth:expansionintonewproductsandmarketsStability:maintenanceofthestatusquoRenewal:redirectionofthefirmintonewmarketsCopyright©2005PrenticeHall,Inc.Allrightsreserved.8–13Corporate-LevelStrategies•GrowthStrategySeekingtoincreasetheorganization’sbusinessbyexpansionintonewproductsandmarkets.•TypesofGrowthStrategiesConcentrationVerticalintegrationHorizontalintegrationDiversificationCopyright©2005PrenticeHall,Inc.Allrightsreserved.8–14GrowthStrategies•Co