Introduction to Strategic Management & Business Policy

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Introduction to Strategic Management Business
Policy

• Chapter 01

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• Strategic Management and Business Policy
• How Strategic Management Evolves
• Financial planning
• Forecast-based planning
• Strategic Planning Externally-oriented planning
• Strategic management Seeks Competitive Advantage
  and Consider Implementation Control)
• Benefits of Strategic Management
• Long term orientation and fit between
  environment, strategy, structure and processes
  may lead to competitive advantage
• Challenges Globalization E-Commerce

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• Theories of Organization Adaptation
• Theory of Population Ecology
• Institutional theory
• Strategic Choice Perspective
• Organization Learning Theory
• Learning Organizations
• Strategic Flexibility

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Basic Model of Strategic Management

• Four Basic Elements

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1. Environmental Scanning
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2. Strategy Formulation

• Mission Statement
• Setting Objectives Goals
• A statement of purpose (strategic intent)
  committing the organization to ambitious
  overarching (stretch) objectives.
• Provides a sense of direction and purpose.
• Drives strategic decision making and resource
  allocations.
• Forces the seeking of significant performance
  improvements to attain objectives
• Customer Orientation and Business Definition
• Abells Framework for Defining the business
• Consumer-oriented versus Product-oriented
  business definition

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2. Strategy Formulation

• Selecting Strategy
• Corporate strategy (Stability, Growth,
  Retrenchment)
• Business strategy (Competitive, Cooperative)
• Functional strategy (Technological Leadership,
  Technological Followership)
• Defining Policies
• Guidelines for decision making that links
  formulation to implementation

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3. Strategy Implementation
Programs
Strategy Implementation
Budgets
Procedures
4. Evaluation Control - Continuous process
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Strategic Decision Making Model
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Strategic Decision Making