Chapter 1 explores the concepts surrounding organizational strategy. It begins with an explanation of the term strategy and offers a basis for how to identify a company’s particular strategy. Next, it explores the importance of striving for competitive advantage in the marketplace and examines the role strategy plays in achieving this advantage. The chapter then explores the idea that strategy is partly proactive and partly reactive. Next, a discussion on strategy and ethics is given. 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. Introduction
1. Managers at all companies face three central questions in thinking strategically about their company’s present circumstances and prospects: Where are we now? —concerns the ins and outs of the company’s present situation — its market standing, how appealing its products or services are to customers, the competitive pressures it confronts, its strengths and weaknesses, and its current performance — Where do we want to go? — deals with the direction in which management believes the company should be headed in terms of growing the business and strengthening the company’s market standing and financial performance in the years ahead — How will we get there? — concerns crafting and executing a strategy to get the company from where it is to where it wants to go.
II. What Is Strategy?
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