Strategic Management

Maxime Lory EDC 4A FCA Semester 1
Strategic Management:
For Final Exam: All chapters except 12 and 15.
* Introducing Strategy:
Chapter 1: Introduction:
Introduction:
Strategy is about key issues for the future of organizations. All the levels of management in an organization must have a comprehension of the strategy of the company they work for.
Strategy matters to almost allorganizations and to everybody working in them.
What is strategy?
Strategy is the long term direction of an organization.
Defining Strategy:
Three elements are involved in a strategy:
1. The long term: Strategies are measured over years or more. Three horizons are considered for a strategy: Horizon 1, the current core activities. Horizon 2, emerging activities that should provide newsources of profits. Horizon 3, a possibility of businesses for which nothing is sure such as R&D or start up researches.
2. Strategic Direction: It is the path used to reach the strategy objectives. It is based on long term objectives, often fulfilling stakeholders’ expectations.
3. The organization: organizations have many internal and external stakeholders. Therefore it is important thatthe organization look inside and outside

Levels of strategy:

It is important to link those levels for a good integration of the strategy.
Strategy Statements:
Strategy statements are statements helping to define clearly the strategy. Those statements are the following:
* Mission/Goals
* Vision: What do we want to achieve (lograr)?
* Objectives: What do we have to achieve?* Scope: Where to go?
* Advantages: What competitive advantage does it give?
Working with strategy:
Every manager is concerned with strategy. The role of the manager will determine the way they face the strategy of the organization they work for. Every layer of an organization can contribute to the strategy, from the ideas to the implementation.
Studying Strategy:
The three main branchesof strategy as a subject:

One perspective is rarely enough for a good strategy, a complete analysis will typically need the insights of economics, psychology and sociology.
The exploring Strategy Model:
The exploring strategy model includes understanding the strategic position of an organization (context), assessing –evaluar- strategic choices for the future (content) and managing strategy inaction (process).
Cf. Fig 1.4 p.15
The strategic position (context):
The strategic position is concerned with the impact on strategy of the external environment, the organization’s strategic capability and its goals and culture.
1. Environment: organizations evolve in a complex environment offering them opportunities and threats.
2. Strategy capability: is a mix of an organizationresources and competences. It gives to the organization strengths and weaknesses;
3. Strategic purpose is encapsuled in the mission, vision and objectives of the strategy.
4. Culture: Organizational culture also influences the strategy and it is important to know it well and often difficult to change it.
Strategic Choices (content):
Strategic choices involve the option for strategy in termsof both the directions in which strategy might move and the methods by which strategy might be pursued.
Strategic choices are:
* Business Strategy: how should the business unit compete?
* Corporate strategy and diversification: Which business to include in the portfolio?
* International Strategy: Where to compete?
* Innovation and Entrepreneurship: What to create?
*Acquisition and alliances: Who to compete with?
Strategy in Action (process) :
Managing strategy in action is about how strategies are formed and how they are implemented. These issues involve the following questions:
* Strategy evaluation
* Strategy development process
* Organizing
* Leadership and strategic change
* Strategy practice
Fig 1.1 p.19: Fourteen fundamentals questions...