1. Strategic thinking
Chapter 1

2. Strategic Management Definition
The process through which organizations analyze and learn from their internal and external environments, establish strategic direction, create strategies that are intended to help achieve established goals, and execute those strategies, all in an effort to satisfy key organizational stakeholders
External and Internal Environmental Analysis
Strategic Direction
Strategy Formulation
Strategy Implementation and Control
Strategic Restructuring

3. What is a strategy?
Strategy – a set of decisions and actions intended to move an organization toward the achievement of its goals and its fundamental purpose.
Three levels of strategy formulation:
Corporate strategy – selecting business areas in which the company will compete (If these areas are related to each other, it’s known as “related diversification.”)
Business strategy – how to compete in the business areas selected (A company that has selected to compete in more than one business area will have a business strategy in each area.)
Functional strategy – details how functional areas (such as marketing, operations, finance, etc.) should work together to facilitate the business strategy

4. The Broad Environment The Task Environment Sociocultural Forces
Technological
Forces
The Task Environment
Competitors
Gov’t agencies
Customers
Unions
The Organization
Owners & Directors
Managers
Employees
Activist
Groups
Suppliers
Financial
Intermediaries
Local
Communities
Economic
Forces
Political/Legal
Forces

5. Analysis
Internal
Strengths
Weaknesses
External
Opportunities
Threats

6. SWOT ANALYSIS
Strengths
Opportunities
Weaknesses
Threats

7. Approaches to Strategic management
Situation Analysis
Analyze the internal and external environments, develop a SWOT analysis, and derive mission, goals and strategy
Environmental Determinism
Determine the best strategy that best fits environmental forces and work to carry it out
Principle of Enactment
Create your own environment; do not wait for external forces to dictate your strategy
Deliberate/Emergent Strategy
Strategies are intended courses of action but can also emerge from a stream of decisions
Resource-based View
Acquire and manage resources to achieve sustainable competitive advantage
Stakeholder Management
Develop mutually beneficial relationships and alliances with external stakeholders

8. What does it take to have a successful company strategy?
Strategic Thinking
Situation Analysis
Environmental Determinism
Principle of Enactment
Deliberate / Emergent Strategy
Resource-based View
Stakeholder Management

9. Strategic thinking: characteristics
Intent Focused
Long-Term Oriented
Consideration of Past and Present
Systems Perspective
Ability to Seize Opportunities
Scientific Approach