Professional Documents
Culture Documents
Strategic Management
STRATEGIC
MANAGEMENT
INPUTS
Strategic Management
Management of Strategy
Competitiveness and Globalization:
Concepts
Concepts and Cases and Cases Seventh edition
PowerPoint Presentation by Charlie Cook
The University of West Alabama
© 2007 Thomson/South-Western.
All rights reserved. Michael A. Hitt • R. Duane Ireland • Robert E. Hoskisson
KNOWLEDGE OBJECTIVES
The Strategic
Management
Process
Hypercompetition
A condition of rapidly escalating
competition based on:
• Price-quality positioning
• Competition to create
new know-how and
Dynamic establish first-mover
Global Economy advantage
Rapid technological • Competition to protect or
change
Strategic maneuvering invade established
among global and innovative product or geographic
combatants markets
De
eg
these environments?
mo
l /L
Industry
i ca
external environment—
So
ic
Competitor
ci o
Environment
cu
Ec
ra
l
Technological
Environment
Attractive industry:
One whose structural
characteristics suggest
above-average returns.
Attractive Industry
Attractive Industry
Strategy Formulation
Attractive Industry
Strategy Formulation
Attractive Industry
Strategy Formulation
Strategy Implementation
Superior Returns
The Resource-
Based Model of
Above-Average
Returns
Environment
Resources
2. Determine the firm’s
Capability capabilities—what it can do
better than its competitors.
Capability: capacity of an
integrated set of resources to
integratively perform a task or
activity.
Resources
Capability
3. Determine the potential of
Competitive Advantage the firm’s resources and
capabilities in terms of a
Competitive advantage:
competitive advantage.
ability of a firm to
outperform its rivals.
Resources
Capability
Competitive Advantage
Resources
Capability
Competitive Advantage
Attractive Industry
Resources
Capability
Competitive Advantage
Attractive Industry
Strategy Formulation
and Implementation
Superior Returns
Valuable Rare
Core
Competencies
Capital Market
Stakeholders
• Suppliers
• Host communities
• Unions
Capital Market
Stakeholders
Product Market
Stakeholders
Organizational Organizational
Stakeholders Stakeholders
•Employees
•Managers
•Nonmanagers