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Chapter1Introduction1/15/20231SectiononeUnderstandingStrategy1/15/20232ConceptStrategyisthedirectionand

scopeofanorganizationoverthelong-term:whichachievesadvantagefortheorganizationthroughitsconfigurationofresourceswithinachangingenvironment,tomeettheneedsofmarkets

andtofulfillstakeholder’s

expectation.——JohnsonG.andScholesK.,(1999)ExploringCorporateStrategy,5th,PrenticeHall1/15/20233Characteristics----long-termdirection----advantage----scopeofanorganization’sactivities----matchactivitieswithenvironment----boundedrationalityandresourcesscarcity----valuesandexpectation1/15/20234SectiontwoTheProcessofStrategyManagement1/15/20235Threeproblemsstrategicmanagementshouldtosolve:Howaboutthestationandenvironmentoftheenterprise?Whatenterpriseisitgoingtobe?Howtoreachitsgivenaim?1/15/20236Whatisstrategymanagement?1/15/20237ConceptStrategicmanagementistheprocessthroughwhichorganizationsanalyzeandlearnfromtheirinternalandexternalenvironments,establishedstrategicdirection,createstrategiesthatintendedtohelpachieveestablishedgoals,andexecutethosestrategies,allinandefforttosatisfykeyorganizationalconstituencies,whicharecalledstakeholders.1/15/20238FactorsofstrategicmanagementProduct–marketscope(whichspecifiestheparticularindustriestowhichthefirmconfinesitsproduct-marketposition)Growthvector(ortheproduct-marketmatrix)(whichindicatesthedirectioninwhichthefirmismovingwithrespecttoitscurrentproduct-marketposition)Competitiveadvantage(whichseekstoidentifyparticularpropertiesofindividualproductmarketsthatwillgivethefirmastrongcompetitiveposition.)Synergy1/15/20239Thestrategyhierarchy

Level1:Corporatestrategyinconcernedwiththeoverallpurposeandscopeoftheorganizationtomeettheexpectationsofownersormajorstakeholdersandaddvaluetothedifferentpartsoftheenterprise.Level2:Strategicbusinessstrategyisabouthowtocompetesuccessfullyinaparticularmarket.Level3:operationalstrategiesareconcernedwithhowthecomponentpartsoftheorganizationintermsofresources,processes,peopleandtheirskillseffectivelydeliverthecorporate-andbusiness-levelstrategiesdirection.1/15/202310SBUAstrategicbusinessunitisasemi-autonomousunitwithinanorganization.Itisusuallyresponsibleforitsownbudgeting,newproductdecisions,hiringdecisions,andpricesetting.AnSBUistreatedasaninternalprofitcentrebycorporateheadquarters.E

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