Strategy can make a difference.

Management Refers to the process of achieving organizational goals by engaging in four functions of planning, leading, organizing, and controlling.

There is always a potential for different parts of the organization to pursue their own goals rather than the overall company goals. Business Policy General guide within which organization members are expected to follow in pursuit of organizational goals. - Bartol and Martin (2007) Allows consistency and coordination within and between organizational departments. - David, Fred (2009)

General Management Functions: 1. Planning - Setting objectives and determining what should be done to accomplish them. 2. Organizing - Process of assigning tasks, allocation of resources, and coordinating work activities. 3. Leading - Process of arousing enthusiasm, inspiring efforts, and providing directions. - Management is getting things done through others (Williams, 2010). 4. Controlling - Refers to measuring performance and taking actions to ensure desired results. WHAT DO WE NEED TO MANAGE STRATEGICALLY? ANSWER = RESOURCES! Resources refer to tangible and intangible assets held by a business enterprise (Ireland et al, 2009). Man, money, machine, methods Every organization must manage its work, people, processes, technology to maximize the use of resources. -

WHY DO SOME FIRMS OUTPERFORM OTHERS? Answer = STRATEGIC MANAGEMENT - Analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantage. -Dess, Lumpkin, Eisner (2011) Components of Strategic Management 1. Analysis a. Vision - Organizational goals that evokes powerful and compelling mental images - Picture of the Firm - Long-term - Enduring and seldom changed b. Mission - purpose -basis of competition and competitive advantage - Set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage.

Basic Functions of an Enterprise: 1. Finance 2. Operations 3. Marketing

- Should change when competitive conditions dramatically change or the firm is faced with new threats and opportunities. c. Objectives/ Goals - Used to operationalize the mission statement Specific Measurable Aligned Realistic Time bound WHAT'S THE USE OF A SOUND OBJECTIVES? Helps channel employees efforts towards common goals Motivate and inspire employees to higher levels of commitment Serves as guidelines for arranging resources Provide a yardstick for rewards and incentives

Things go slowly for a time and nothing seems to happen -- until suddenly the eggshell cracks, or the branch blossoms... No matter how great the talent or effort, some things just take time. - Warren Buffet Grit Psychological trait which refers to commitment to long-term goals and to persist in the face of difficulty. If you were forced to give up all your qualities but one, the one you should keep is your grit.

Key Attributes of Strategic Management

d. Environment 2. Decisions - What industry? - How should we compete? 3. Actions - Allocate resources - Design organizations

Corporate Governance Relationship among various participants determining the direction and performance of corporations. - Monks and Minow (2001)

Primary Participants: When no one knows what the firm is striving to accomplish, they have no idea to work toward.- Dess, Lumpkin, Eisner (2011) 1. Shareholders 2. Management 3. Board of directors Chip of Excellence Throughout nature, growth involves periodic accelerations and transformations: - Elected representatives - Independent

- Ensures that the interests and motives of management are aligned with those of the owners - Oversees and evaluate directors and firm's top management Mechanisms to Ensure Effective Corporate Governance (Internal controls) 1. Shareholder activism 2. Proper managerial rewards and incentives 3. Effective and engaged Board of directors Mechanisms to Ensure Effective Corporate Governance (External controls) 1. Banks 2. Analysts 3. External auditors 4. Financial press 5. Threat of hostile takeovers

Stakeholder Management Firm's strategy for recognizing and responding to the interests of all its salient stakeholders.

Social Responsibility Refers to firm or person's obligation to contribute something for the overall welfare of the society.

Stakeholder Individual or group, inside or outside the company, that has a stake in and can influence an organization's performance.

Firms Stakeholders: Shareholders Employees Suppliers Creditors Customers Government Communities