MGMT1001 Chapter Notes - Chapter 9: Strategic Management, Horizontal Integration, Vertical Integration
STRATEGIC MANAGEMENT
1. What is strategic management?
What aagers do to deelop the orgaizatios strategies
Strategies: the plan for how the organisation will do what it is in their business to do, how to
complete it successfully, and how it will attract and satisfy its customers to achieve their
goal.
A common term for strategic management is business model. Business model is a strategic
design for how a company intends to make profits from its strategies, work processes, and
work activities. Business model focuses on value that customers give for their products or
services and its profitability.
2. Importance
a. It a ake a differee i a opas level of performance: strategic management can
iproe a opas perforae
b. Organisations must face continuous change in situations: strategic management help
cope with uncertainty
c. Organisations are complex and diverse: strategic management hep in managing
complexity and diversity.
3. Process
a. Identify mission, goals, and strategies
b. Do external environment or factors analysis: the relevant opportunities and threats
c. Do an internal analysis: resources, capabilities, core competencies (major value-creating
capabilities), strengths, weaknesses
d. Formulate strategies: corporate, competitive and functional
e. Implement the strategies
f. Evaluate results
4. Corporate strategy
An organisational strategy that determines what businesses a company is in, and what it
wants to do with those businesses. It is based on the mission and goals of the organisation
and the roles that each of the business unit will play (marketing, finance, accounting
department).
Types:
a. Growth strategy: a company expands the number of markets served or products
offered, either through its current business or ne ones. A company can grow through
concentration (focusing on its primary line), vertical integration (gain control of another
company that is directly sequenced with its own), horizontal integration (merging with
another company in the same industry), or diversification (different industries, but
somehow still related).
b. Stailit strateg otiuig hat its urretl doig
This strateg is ipleeted he a opas purpose is to surie ad this strateg is
appropriate when a company is facing slow or no-growth opportunities.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
What (cid:373)a(cid:374)agers do to de(cid:448)elop the orga(cid:374)izatio(cid:374)s(cid:859) strategies. Strategies: the plan for how the organisation will do what it is in their business to do, how to complete it successfully, and how it will attract and satisfy its customers to achieve their goal. A common term for strategic management is business model. Business model is a strategic design for how a company intends to make profits from its strategies, work processes, and work activities. Business model focuses on value that customers give for their products or services and its profitability. Identify mission, goals, and strategies: do external environment or factors analysis: the relevant opportunities and threats, do an internal analysis: resources, capabilities, core competencies (major value-creating capabilities), strengths, weaknesses, formulate strategies: corporate, competitive and functional. Implement the strategies: evaluate results, corporate strategy. An organisational strategy that determines what businesses a company is in, and what it wants to do with those businesses.
