1 Strategic Thinking (Daft, pagina 238 /258) Strategic thinking means to take the long-term view and to see the big picture, including the organization and the competitive environment, and to consider how they fit together. Understanding the strategy concept, the levels of strategy, and strategy formulation versus implementation (‘how strategy is put into action’) is an important start toward strategic thinking.

2 Strategic Management −Set of decisions and actions used to implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals −Responsibility = top managers and chief executive officer

3 Managers ask such questions as...  What changes and trends are occurring?  Who are our customers?  What products or services should we offer?  How can we offer these products or services most efficiently? Strategic Management

4 Purpose of Strategy −The plan of action that prescribes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining organizational goals Strategies focus on: −Core competencies −Synergy −Creating value for customers

5 Three Levels of Strategy in Organizations

6 Strategic Management Process

7 Portfolio Strategy Mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage BCG Matrix

8 Five Forces Affecting Industry Competition

9 General strategy choices

10 Competitive Edge Through Competitive Strategies −Differentiation = attempt to distinguish products or services from that of competitors −Cost leadership = aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors −Focus = concentrates on a specific regional market or buyer group