SGMT 3000 Chapter Notes - Chapter 1: List Of The Lego Movie Characters, Ard International Music Competition, Social Skills
18 Oct 2015
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Document Summary
Strategic leadership: managing the strategy-making process for competitive. Strategy: set of related actions that managers take to increase company performance: if a company"s strategy results in superior performance, that company has a competitive advantage. Strategic leadership: creating competitive advantage through effective management of the strategy-making process. Strategy making process: process by which managers select and implement set of strategies that aim to achieve a competitive advantage. Strategy formulation: selecting strategies based on analysis of an organization"s external and internal environment. Strategy implementation: putting strategies into action (designing, delivering, supporting products) Strategic leadership increases the value of the enterprise to its owners and its shareholders. Determinants of shareholder value: effective strategies result in profitability (roic) and. Need to maximize shareholder value: shareholders provide company with risk capital, shareholders are legal owners of a company and have a claim on the profits generated by the business. Managers have obligation to invest profits in ways that maximize shareholder value.
