Hello readers. I am taking Strategic Management class in this semester, and I think this class is really useful for my future career! So I want to share what I have learned in the class here.
First topic is "Creating Competitive Advantages".
Today, there are many opportunities in the global marketplace, and today's readers are required to have abilities such as being proactive, expecting to change, and being able to make dramatic change to their business strategies when necessary.
Strategic management is defined that the analysis, decisions, and actions an organization undertake and sustain competitive advantages. Nowadays building own competitive advantages is more important than before. Competitive advantage is firm's resources and capabilities that enable it to overcome the competitive forces in its industry.
Strategic management involves three primary activities:
1) LOOK - Strategy analysis: looking at external environment as it relates to the business
2) DECIDE - Strategy formulation: decisions on business purpose, products, markets, resources, goals, etc.
3) ACT - Strategy implementation: actions to make the decisions real and accomplish goals
Four attributes of strategic management:
1. Directs organization toward overall goals and objectives
2. Includes multiple stakeholders in decision making
3. Needs to incorporate short-term and long-term perspectives
4. Recognize the tradeoff between efficiency "doing the right things" and effectiveness "doing things right" - Manager needs to be ambidextrous!!
Most organizations employ more than a few dozen people. The overall purpose of corporation is to maximize the long-term return to the owners (shareholders). For filling this purpose, Corporate Governance that determines the direction and performance of corporations is responsible.
Key elements of Corporate Governance are:
The management (headed by the CEO)
The shareholders (owners)
The Board of Directors (elected by shareholders to represent their interests)
To be effective strategic manager management must be part of the whole organization not just a top management activity!
Thank you for your reading!
Misa
First topic is "Creating Competitive Advantages".
Today, there are many opportunities in the global marketplace, and today's readers are required to have abilities such as being proactive, expecting to change, and being able to make dramatic change to their business strategies when necessary.
Strategic management is defined that the analysis, decisions, and actions an organization undertake and sustain competitive advantages. Nowadays building own competitive advantages is more important than before. Competitive advantage is firm's resources and capabilities that enable it to overcome the competitive forces in its industry.
Strategic management involves three primary activities:
1) LOOK - Strategy analysis: looking at external environment as it relates to the business
2) DECIDE - Strategy formulation: decisions on business purpose, products, markets, resources, goals, etc.
3) ACT - Strategy implementation: actions to make the decisions real and accomplish goals
Four attributes of strategic management:
1. Directs organization toward overall goals and objectives
2. Includes multiple stakeholders in decision making
3. Needs to incorporate short-term and long-term perspectives
4. Recognize the tradeoff between efficiency "doing the right things" and effectiveness "doing things right" - Manager needs to be ambidextrous!!
Most organizations employ more than a few dozen people. The overall purpose of corporation is to maximize the long-term return to the owners (shareholders). For filling this purpose, Corporate Governance that determines the direction and performance of corporations is responsible.
Key elements of Corporate Governance are:
The management (headed by the CEO)
The shareholders (owners)
The Board of Directors (elected by shareholders to represent their interests)
To be effective strategic manager management must be part of the whole organization not just a top management activity!
Thank you for your reading!
Misa