...strategy is partly proactive and partly reactive. This is followed by a close look at the relationship between a company’s strategy and its business model. The chapter proceeds forward with a look at what makes strategy a winner and then presents reasons for why crafting and executing strategy are important. The chapter concludes with thoughts on the equation: good strategy + good strategy execution = good management. Lecture Outline I. The Importance of Managing Strategically 1. Three questions must be answered by managers of all types of organizations: a. Where are we now? b. Where do we want to go? c. How are we going to get there? 2. “Where we are now?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strength and capabilities and its competitive weaknesses. 3. “Where do we want to go?” this lies within managements vision of the company’s future direction. It pushes managers to make choices about the direction the company should be headed—what new or different customer groups and customer needs it should endeavor to satisfy, what market positions it needs to be staking out, what changes in its business makeup are needed. 4. “How are we going to get there?” challenges managers to craft and execute a strategy—a fullblown action plan—capable of moving the...
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...Business Policy and Strategy – Study Guide: Unit 1 Material from McGraw Hill website – Chapters 1 & 2 Chapter 1 What Is Strategy and Why Is It Important? Learning Objectives - After studying this chapter, you should be able to: LO 1. | Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. | LO 2. | Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. | LO 3. | Understand that a company's strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company's strategy. | LO 4. | Learn why it is important for a company to have a viable business model that outlines the company's customer value proposition and its profit formula. | LO 5. | Learn the three tests of a winning strategy. | Key Points: The tasks of crafting and executing company strategies are the heart and soul of managing a business enterprise and winning in the marketplace. The key points to take away from this chapter include the following: 1. A company's strategy is the game plan management is using to stake out a market position, conduct its operations, attract and please customers, compete successfully, and achieve the desired performance targets. 2. The central thrust of a company's strategy is undertaking moves...
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...Confirming Pages PART 1 SA M PL E C H AP TE R Concepts and Techniques for Crafting and Executing Strategy tho29503_ch01_001-017.indd 1 12/10/12 4:52 PM Confirming Pages WHAT IS STRATEGY AND WHY IS IT IMPORTANT? AP Learning Objectives TE R CHAPTER 1 Learn what we mean by a company’s strategy. LO 2 Grasp the concept of a sustainable competitive advantage. LO 3 Develop an awareness of the four most basic strategic approaches for winning a sustainable competitive advantage. LO 4 Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. LO 5 Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad – Consultants and professors One must have strategies to execute dreams. Azim Premji – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the firm...
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...Introduction Most Americans can remember their father and mother sitting in their favorite chairs while reading their local newspaper. Others can remember waking up and walking outside to their driveway to get the morning newspaper before getting a cup of coffee. Also, it seems just like yesterday when a co-worker would take it personal if someone picked up their newspaper and started reading it without permission. Reading the daily paper was part of American culture and a favorite pastime. This simple activity informed the average citizen about local politics, events, crime, business, sales, jobs, entertainment, weather forecast, and one could even get his horoscope. Being informed through the newspaper about the local community, the nearest populated city, and our nation once gave people a since of pride. In current times, even though people are just as informed, there are many forms of media that has surpassed the newspaper in providing information with up to the minute news releases. This has taken a large share of the market away from the outdated art of reading the printed version of the news. As people have become more familiar and comfortable with the internet, they are increasingly choosing it as a source of news delivery. In addition there are several other sources of wired and wireless electronic media delivery platforms that are available to the vast majority of people. These devices include netbooks, mobile phones, and e-readers. The newspaper industry...
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...CONNECT FEATURES Interactive Applications Interactive Applications offer a variety of automatically graded exercises that require students to apply key concepts. Whether the assignment includes a click and drag, video case, or decision generator, these applications provide instant feedback and progress tracking for students and detailed results for the instructor. Case Exercises The Connect platform also includes author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your...
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