MGMT 4000 Chapter Notes - Chapter 1: Strategic Management, Time Horizon, Competitive Intelligence
27 Nov 2017
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Document Summary
Strategic management: set of managerial decisions & actions that help determine the long-term performance of an organization. Includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Interactive among all levels & no longer strictly top down. Improved understanding of a rapidly changing environment: studies of small and medium-sized businesses reveal that the greater the level of planning intensity, greater the level of financial performance. Challenges to strategic management: globalization, innovation & sustainability: previously a corporation could be successful by focusing on making/selling goods international considerations were limited, globalization has changed the way modern corporations do business. Theory of population ecology: suggests that once an organization is successfully established in a particular environmental niche, its unable to adapt to changing conditions. Inertia prevents organization from changing in any significant manner. Institution theory: proposes that organizations can and do adapt to changing conditions by imitating other successful organizations.
