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Sept 10 Slides

The document outlines the key themes in strategic management including the changing competitive landscape, models of superior profitability, strategic intent and mission, and key stakeholder groups. It discusses the challenges firms face in maintaining competitive success over time due to rapid technological changes and increasing globalization. The document also presents two alternative models - the industrial organization model and resource-based model - for how firms can achieve above-average returns.

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32 - Hetvi Patel
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30 views

Sept 10 Slides

The document outlines the key themes in strategic management including the changing competitive landscape, models of superior profitability, strategic intent and mission, and key stakeholder groups. It discusses the challenges firms face in maintaining competitive success over time due to rapid technological changes and increasing globalization. The document also presents two alternative models - the industrial organization model and resource-based model - for how firms can achieve above-average returns.

Uploaded by

32 - Hetvi Patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 2

Strategic External
Environment
The Strategic
Management
Inputs
Strategic Intent
Strategic Mission
Chapter 3
Internal
Environment
Process

Strategy Formulation Strategy Implementation

Chapter 4 Chapter 5 Chapter 6 Chapter 10 Chapter 11


Business-Level Competitive Corporate-Level Corporate Structure
Strategic
Actions

Strategy Dynamics Strategy Governance & Control

Chapter 7 Chapter 8 Chapter 9 Chapter 12 Chapter 13


Acquisitions & International Cooperative Strategic Entrepreneurship
Restructuring Strategy Strategies Leadership & Innovation
Outcomes
Strategic

Strategic
Competitiveness
Above Average
Feedback
Returns
Chapter One: Key Themes

Challenge of Strategic Management

Changing Competitive Landscape

Two Models of Superior Profitability


Industrial Organization Model
Resource-Based Model

Key Stakeholder Groups


Challenge of Strategic Management

Only 2 of the top 25 U.S. corporations in


1900 are still competitive today!

In a recent year, almost 150,000 U.S.


businesses failed or filed for bankruptcy

Competitive success is transient...unless care


is taken to preserve competitive position
New Competitive Landscape

Fundamental nature of The pace of change


competition is changing is relentless....
Rapid technological changes
and increasing
Rapid technology diffusions
Traditional industry
Dramatic changes in boundaries are
information and blurring...such as
communication technologies Computers
Increasing importance of Telecommunications
knowledge
New Competitive Landscape

The global economy is Traditional sources of


changing competitive advantage
no longer guarantee
People, goods, services and success
ideas move freely across
geographic boundaries New keys to success
New opportunities emerge in include:
multiple global markets Flexibility
Markets and industries become Innovation
more internationalized Speed
Integration
Alternative Model of Superior Returns

1 Industrial Organization Model

2 Resource-Based Model
I/O Model of Superior Returns

The Industrial Organization Model


suggests that above-average returns
for any firm are largely determined
by characteristics outside the firm.
The I/O model largely focuses on
industry structure or attractiveness of
the external environment rather than
internal characteristics of the firm.
Resource-Based Model of Superior Returns

The Resource-Based Model suggests


that above-average returns for any
firm are largely determined by
characteristics inside the firm.
The Resource-Based view focuses on
developing or obtaining valuable
resources and capabilities which are
difficult or impossible for rivals to
imitate.
Strategic Intent
Winning competitive battles through deciding how
to leverage internal resources, capabilities, and
core competencies.

Strategic Mission
An application of strategic intent in terms of
products to be offered and markets to be served.
Groups who are affected by a firm’s performance
Stakeholders and who have claims on its performance

The firm must maintain performance


at an adequate level in order to
maintain the participation of key Capital Market
stakeholders

Firm Stock market/Investors


Debt suppliers/Banks

Product Market
Organizational
Primary Customers
Suppliers Employees
Managers
Non-Managers

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