Midterm Notes

14 Pages
Unlock Document

Management and Organizational Studies
Management and Organizational Studies 4410A/B
Raymond Leduc

CHAPTER 1 THE NATURE OF STRATEGIC MANAGEMENT Focus company: McDonalds Strategic management/planning: The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Long-range planning: Tries to optimize for tomorrow the trends of today. States of strategic management: 1. Strategy formulation: Includes developing a vision and mission, identifying an organizations external opportunities and threats, determining internal strengths and weaknesses, establish long-term objectives, generating alternative strategies, and choosing particular strategies to pursue. 2. Strategy implementation: Requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. The action stage. 3. Strategy evaluation: Three fundamental activities reviewing external and internal factors that are the bases for current strategies, measuring performance, and taking corrective actions. Key Terms in Strategic Management Competitive advantage: Anything that a firm does especially well compared to rival firms. Strategists: The individuals who are most responsible for the success or failure of an organization. Vision statement: What do we want to become? Often considered the first step in strategic planning, preceding even the development of a mission statement. Mission statement: Enduring statements of purpose that distinguish one business from other similar firms. A mission statement describes the scope of a firms operations in product and market terms. Addresses the question what is our business? External opportunities and threats: Economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future. Internal strengths and weaknesses: An organizations controllable activities that are performed especially well or poorly. Long-term objectives: Specific results that an organization seeks to achieve in pursuing its basic mission in more than one year. Strategies: The means by which long-term objectives will be achieved. Annual objectives: Short-term milestones that organizations must achieve to reach long-term objectives. 1 Policies: The means by which annual objectives will be achieved. Include guidelines, rules, and procedures established to support efforts to achieve stated objectives. Three important questions to answer when developing a strategic plan: 1. Where are we now? 2. Where do we want to go? 3. How are we going to get there? Communication is a key to successful strategic management. Empowerment: The act of strengthening employees sense of effectiveness by encouraging them to participate in decision making and to exercise initiative and imagination, and rewarding them for doing so. Some reasons for lack of strategic planning: Lack of knowledge or experience in strategic planning Poor reward structures Firefighting Waste of time Too expensive Laziness Content with success Etc CHAPTER 3 THE EXTERNAL ASSESSMENT Focus company: Dunkin Brands, Inc. External audit: Its purpose is to develop a finite list of opportunities that could benefit a firm and threats that should be avoided. External forces: 1. Economic 2. Social, cultural, demographic and natural environment 3. Political, government, and legal 4. Technological 5. Competitive Industrial Organization (I/O) approach: Advocates that external (industry) factors are more important than internal factors in a firm achieving competitive advantage. Ex: Porters Five Forces Model. Seven characteristics describe the most competitive companies: 1. Market share matters 2. Understand and remember precisely what business youre in 3. Whether its broke or not, fix it 4. Innovate or evaporate 5. Acquisition is essential to growth 6. People make a difference 2 7. There is no substitute for quality and no greater threat than failing to be cost-competitive on a global basis Competitive intelligence (CI): A systematic and ethical process for gathering and analyzing information about the competitions activities and general business trends to further a businesss own goals. Market commonality: The number and significance of markets that a firm competes in with rivals. Resource commonality: The extent to which the type and amount of a firms internal resources are comparable to a rival. Porters Five Forces: 1. Rivalry among competing firms o Usually the most powerful 2. Potential entry of new competitors 3. Potential development of substitute products 4. Bargaining power of suppliers 5. Bargaining power of consumers o Can be the most important force affecting competitive advantage o Consumers increase bargaining power if i. They can inexpensively switch to competing brands or substitutes ii. They are particularly important to the seller iii. Sellers are struggling in the face of falling consumer demand iv. They are informed about sellers products, prices, and costs v. They have discretion in whether and when they purchase the product External Factor Evaluation (EFE) Matrix: Allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information. Competitive Profile Matrix (CPM): Identifies a firms major competitors and its particular strengths and weaknesses in relation to a sample firms strategic position. CHAPTER 4 THE INTERNAL ASSESSMENT Focus company: Amazon.com, Inc. Marketing affiliate: A business that gets sales commission by featuring links to outside e- commerce sites on their own website. The process of gaining competitive advantage in a firm: Weaknesses Strengths Distinctive Competencies Competitive Advantage Resource-Based View (RBV): This approach to competitive advantage contends that internal resources are far more important for a firm than external factors in achieving and sustaining competitive advantage. 3
More Less

Related notes for Management and Organizational Studies 4410A/B

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.