ADMN 232 Chapter Notes - Chapter 8: Red Lobster, Investment, Cost Leadership

• School: Athabasca University
• Department: Administration
• Course: ADMN 232
• Professor: Dr. El

Document Summary

Chapter 8: strategy-making process, assessing the need for strategic change. With (cid:272)usto(cid:373)e(cid:396)s" (cid:374)eeds (cid:272)o(cid:374)sta(cid:374)tl(cid:455) g(cid:396)o(cid:449)i(cid:374)g a(cid:374)d (cid:272)ha(cid:374)gi(cid:374)g, a(cid:374)d with competitors working harder, faster, and smarter to meet those needs, the first step in creating a strategy is determining the need for strategic change. Furthermore, top-level managers are often slow to recognize the need for strategic change, especially at successful companies that have created and sustained competitive advantages. Success often leads to competitive inertia: a reluctance to change strategies or competitive practices that have succeeded in the past. T(cid:396)ategi(cid:272) disso(cid:374)a(cid:374)(cid:272)e: a dis(cid:272)(cid:396)epa(cid:374)(cid:272)(cid:455) (cid:271)et(cid:449)ee(cid:374) a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s intended strategy and the strategic actions managers take when implementing that strategy. Strategic dissonance can indicate that managers are not doing what they should to carry out company strategy; but it can also mean that the intended strategy is out of date and needs to be changed: situational analysis: