You are on page 1of 12

Strategic Management and

Strategic Competitiveness
Strategy Implementation

Strategic
Entrepreneurship

Organizational
Structure and
Controls

Corporate
Governance

Strategic
Leadership
Strategy Formulation
Strategic
Competitiveness
Above-Average
Returns
Strategic Intent
Strategic Mission

The External
Environment

The Internal
Environment
The Strategic
Management
Process
Feedback
S
t
r
a
t
e
g
i
c

I
n
p
u
t
s

S
t
r
a
t
e
g
i
c

A
c
t
i
o
n
s

S
t
r
a
t
e
g
i
c

O
u
t
c
o
m
e
s


Corporate-
Level Strategy

Cooperative
Strategy

Competitive Rivalry
and Competitive
Dynamics

International
Strategy

Business-Level
Strategy

Acquisition and
Restructuring
Strategies
Important Definitions
Strategic Management Process
The full set of commitments, decisions,
and actions required for a firm to achieve
strategic competitiveness and earn
above-average returns
Important Definitions
Strategic Competitiveness
Achieved when a firm successfully formulates
and implements a value-creating strategy
Occurs when a firm develops a strategy that
competitors are not simultaneously
implementing
Provides benefits which current and potential
competitors are unable to duplicate
Above-Average Returns
Strategic
Flexibility
Strategic
Flexibility
Strategic Flexibility
Strategic
flexibility
Strategic
reorientation
Capacity to
learn
Organizational
slack
1. Strategy dictated by the
external environments of
the firm (what
opportunities exist in
these environments?)
2. Firm develops internal
skills required by
external environment
(what can the firm do
about the opportunities?)
General
Environment
Global
Technological
1. External Environments
Industry
Environment
Competitor
Environment
I/O Model of Above-Average Returns
I/O Model of Above-Average Returns
Industrial Organization
Model
The External Environment
An Attractive Industry
Strategy Formulation
Assets and Skills
Strategy Implementation
Superior Returns
Superior returns: earning
of above-average returns
Four Attributes of Resources and
Capabilities (Competitive Advantage)
the firm is organized appropriately to
obtain the full benefits of the resources in
order to realize a competitive advantage
Valuable
allow the firm to exploit opportunities or
neutralize threats in its external
environment
Rare
possessed by few, if any, current and
potential competitors
Costly to imitate
when other firms cannot obtain them or
must obtain them at a much higher cost
Nonsubstitutable
R
e
s
o
u
r
c
e
s

a
n
d

C
a
p
a
b
i
l
i
t
i
e
s

Core Competencies
Resources and capabilities that meet
these four criteria become a source of:
Valuable
Rare
Costly to imitate
Nonsubstitutable
Core Competencies
R
e
s
o
u
r
c
e
s

a
n
d

C
a
p
a
b
i
l
i
t
i
e
s

Core Competencies are the basis for a
firm’s
Competitive
advantage
Strategic
competitiveness
Ability to earn
above-average
returns
Core Competencies
Resource-based Model of Above Average
Returns
Resource-based
Model
Resources
Capability
Competitive Advantage
An Attractive Industry
Strategy Form/Impl
Superior Returns
Superior returns: earning
of above-average returns
Capital Market Stakeholders
Product Market Stakeholders
Organizational Stakeholders
The Firm and Its Stakeholders
Employees
Managers
Nonmanagers
Stakeholders