Strat 1

  1. Competitive Dynamics
    uncertainty caused by competing parties seeking optimization of individual returns
  2. Basic Elements of Strategy (4)
    • 1)Goals:objectives/position
    • 2)Deliberation: reasoning, predicting, planning, designing3)Action: interrelated and coordinated
    • 4)Integration: connections among coherent deliberation, actions, and goals
  3. Element 1 Goals: Business Goals
    earn money, survival/desirable position, increase social welfare
  4. Element 1 Goals: Intermediate Goals
    market shares, productivity, innovation, quality
  5. Element 2 Deliberation:
    • -Identify alternative paths/choices to achieve goals
    • -Evaluate alternatives and situations
    • -Determine sub-goals
    • -Vision
  6. Element 3 Actions
    • -Understanding competitors, customers, info collecting (collecting data,planning, designing)
    • -Hiring, advertising, equipment updating (implementation of strategy)
    • -**Actions must be interrelated and coordinated**
  7. It is a strategy
    • -Integration of thinking, future positions, and actions
    • -Consistency in active thinking and interrelated actions leads to the achievement of goals
  8. What is NOT a Strategy
    • 1)Actions/thinking w/o goals
    • 2)Irrational thinking that's not executable
    • 3)Random Action
    • 4)Thinking w/o actions
    • 5)Achievement of goals cannot be attributed to reasonable thinking and interrelated actions
  9. Strategic Management
    management of strategy formulation and strategy implementation to achieve long-term survival while earning sustainable returns
  10. Elements of Strategic Mgmt.
    • 1)Process of managing strategy: deliberation over business comp. + critical actions
    • 2)Consist of all mgmt. components
    • 3)Org. Level goal: Profit target
    • 4)Long=term
    • 5)Sustainable
  11. 3 Modes of Strategic Mgmt.
    • 1) Proactive Strategy: Thinking → Actions → Goals
    • 2) Emergent Strategy: Thinking → Actions → Rethinking → Actions → Goals
    • 3) Spontaneous Strategy/Strategy Shift:  Actions → Thinking → Actions → Goals
  12. Stakeholders
    Parties/individuals with the right to claim the outcomes of business
  13. Organizational Stakeholders
    Managers, employees, etc
  14. Capital Market Stakeholders
    shareholders and creditors, etc
  15. Product Market Stakeholders
    customers, suppliers, governments, unions, etc.
  16. Conflicts Earning Above Average sustainable returns
    • 1)Goal conflicts among stakeholders
    • 2)Competitors are always watching
    • 3)Uncertainty inside and outside
    • 4)Uncontrollable issues
    • 5)Knowledge constraint of firms
    • 6)Cognitive limitation of strategists
Card Set
Strat 1
Strat 1