2. Management Skills 1e Griffin and Van Fleet
Strategic Thinking
Strategy
Is a comprehensive plan for accomplishing an organization’s goals.
Strategic Management
Involves formulating and implementing strategies to take advantage of business opportunities and meet competitive challenges.
Effective Strategies
Promote superior alignment between an organization, its environment, and its goals.
Managers are responsible for creating and managing strategies.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

3. The Components of Strategy
Management Skills 1e Griffin and Van Fleet
The Components of Strategy
Distinctive Competence
Competitive Scope
Resource Deployment
Components of Effective Strategies
A well-conceived strategy addresses three areas: distinctive competence, scope, and resource deployment.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

4. Types of Strategic Alternatives
Management Skills 1e Griffin and Van Fleet
Types of Strategic Alternatives
Market A
Market B
Corporate-level strategy
Business-level strategy
Functional-level strategy
Operations-level strategy
Businesses today develop business-level strategies and corporate-level strategies which result in various combinations of lower-level strategic alternatives for organizations.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

5. Strategy Formulation and Implementation
Management Skills 1e Griffin and Van Fleet
Strategy Formulation and Implementation
Strategy Formulation
The set of processes involved in creating or determining the organization’s strategies; it focuses on the content of strategies.
Strategy Implementation
The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved.
Firms formulate strategy through a content-creating process and then implement actions to execute the strategies they have developed.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

6. Management Skills 1e Griffin and Van Fleet
Types of Strategies
Deliberate Strategy
A plan, chosen and implemented to support specific goals, that is the result of a rational, systematic, and planned process of strategy formulation and implementation.
Emergent Strategy
A pattern of action that develops over time in the absence of goals or missions, or despite goals and missions.
Some firms may follow a planned deliberate strategy while other firms may pursue an emergent strategy that allows their strategy to develop and evolve over time.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

7. SWOT Analysis and Strategy
Management Skills 1e Griffin and Van Fleet
SWOT Analysis and Strategy
Evaluating Organizational Strengths
Organizational strengths
are skills and abilities enabling an organization to conceive of and implement strategies.
Common organizational strengths
are organizational capabilities possessed by numerous competing firms.
Distinctive competencies
are useful for competitive advantage and superior performance.
Imitation of distinctive competencies
removes the competitive advantage of the competency.
SWOT analysis divides organizational strengths into two categories: common strengths and distinctive competencies.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

8. SWOT Analysis and Strategy (cont’d)
Management Skills 1e Griffin and Van Fleet
SWOT Analysis and Strategy (cont’d)
Evaluating Organizational Strengths (cont’d)
Sustained competitive advantage
occurs when a distinctive competence cannot be easily duplicated.
is what remains after all attempts at strategic imitations cease.
Strategic imitation of a distinctive competence is difficult when:
it is based on unique historical circumstances.
it is difficult for competitors to understand its nature or character.
it is based on a complex phenomenon (e.g., organizational culture).
A distinctive competence offers long-term sustainable competitive advantage if it is based on an important competitive factor that is difficult for competitors to imitate.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

9. SWOT Analysis and Strategy (cont’d)
Management Skills 1e Griffin and Van Fleet
SWOT Analysis and Strategy (cont’d)
Evaluating Organizational Weaknesses
Organizational weaknesses
Skills and capabilities that do not enable an organization to choose and implement strategies that support its mission.
Weaknesses can be overcome by:
investments to obtain the strengths needed.
modification of the organization’s mission so it can be accomplished with the current workforce.
Competitive disadvantage
occurs when an organization fails to implement strategies being implemented by competitors.
Organizational weaknesses are skills and capabilities that do not enable an organization to choose and implement strategies that support its mission.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

10. SWOT Analysis and Strategy (cont’d)
Management Skills 1e Griffin and Van Fleet
SWOT Analysis and Strategy (cont’d)
Evaluating an Organization’s Opportunities and Threats
Organizational opportunities
are areas in the organization’s environment that may generate high performance.
Organizational threats
are areas in the organization’s environment that make it difficult for the organization to achieve high performance.
Evaluating opportunities and threats requires analyzing an organization’s environment.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

11. Michael Porter’s “Five Forces” Model
Management Skills 1e Griffin and Van Fleet
Michael Porter’s “Five Forces” Model
Power of Suppliers
Threat of Substitutes
Threat of New Entrants
Internal Competitive Market Rivalry
Power of Customers
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

12. Management Skills 1e Griffin and Van Fleet
The Creative Process
Preparation
Incubation
Insight
This slides illustrates the steps in the creative process.
Verification
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

13. Management Skills 1e Griffin and Van Fleet
Managing Innovation
Innovation
The managed effort of an organization to develop new products or services or new uses for existing products or services.
Incremental Innovation
Managerial Innovation
Process Innovation
Forms of Innovation
Radical Innovation
Technical Innovation
Product Innovation
Innovation can occur in many different ways and places in an organization.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

14. Management Skills 1e Griffin and Van Fleet
Organization Culture
Organization Culture
Is the set of values, beliefs, symbols that help guide its behavior.
Can be used to support innovative activity if it is strong and appropriately focused.
Can communicate a sense that innovation is valued and will be rewarded and that occasional failure in the pursuit of new ideas is not only acceptable but expected.
Culture as the foundation of the organization’s internal environment has a major role in shaping managerial behavior.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

15. Management Skills 1e Griffin and Van Fleet
Managing Change
Organization Change
Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).
What Causes Organizations to Change?
External forces in an organization’s general and task environments can force it to change how it competes.
Internal forces inside the organization cause it to change its structure and strategy; some internal forces are responses to external pressures.
When internal or external forces cause change in an organization, the effects of the change can extend beyond the actual area where the change occurs.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

16. Planned Versus Reactive Change
Management Skills 1e Griffin and Van Fleet
Planned Versus Reactive Change
Planned Change
Is designed and implemented in an orderly and timely fashion in anticipation of future events.
Reactive Change
Is a piecemeal response to events and circumstances as they develop.
Change in organizations can occur in either a planned or reactive fashion.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

17. Understanding Resistance to Change
Management Skills 1e Griffin and Van Fleet
Understanding Resistance to Change
Uncertainty about the extent and effects of change.
Threats to self-interests and power and influence.
The Change Process
This slide lists several reasons why people resist change.
Different perceptions of change effects and outcomes
Fear of loss of social networks, power, security, and familiar procedures.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

18. Overcoming Resistance to Change
Management Skills 1e Griffin and Van Fleet
Overcoming Resistance to Change
Techniques for overcoming resistance:
Encourage active participation in change process.
Provide education and communication about change process.
Facilitate change process by:
Making only necessary changes
Announcing changes in advance
Allowing time to adapt to change.
Managers have several techniques available for their use in overcoming resistance to change.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

19. Management Skills 1e Griffin and Van Fleet
Managing Risk
Risk
Is uncertainty about future events.
Risk management
Is the process of protecting the firm and its assets by reducing the potential consequences of risky future events.
Risk propensity
Is the degree to which an individual is willing to take chances and make risky decisions.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

20. Options for Managing Risk
Management Skills 1e Griffin and Van Fleet
Options for Managing Risk
Factors Affecting a Manager’s Choices for Managing Risk
Understanding one’s own risk propensity
Understanding potential costs and benefits of outcomes
Reducing the consequences of risk
Sharing risk by working with others
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.