Premium Essay

Strategic Management Review

In: Business and Management

Submitted By shwang0215
Words 1182
Pages 5
Strategic Midterm 2 Review
Ch.5 Five Generic Competitive Strategies
-There are several basic approaches to competing successfully and gaining competitive advantage, but they all involve giving buyers what they perceive as superior value compared to rivals.
-competitive strategy deals exclusively with the specifics of management’s game plan for competitng successfully.
-Two biggest factors that distinguish one competitive strategy from another 1)whether company’s market target is too board/narrow 2)whether the company is pursuing a Competitive advantage linked to lower costs or differentiation.
-these two factors give rise to 5 competitive strategy options
1)a low-cost provider strategy-striving to achieve lower overall cost than rivals
2)a broad differentiation strategy-seeking to differentiate product/service from rival
3)a focused low-cost strategy-concentrating on narrow buyer segment& competing rivals by lower cost thus serve niche members at low price
4)a focused differentiation strategy-concentrating and outcompetiting rivals by differentiation
5)a best cost provider strategy-giving customers more value for the money by satisfying buyers’ expectations on key quality…etc while beating their price. Hybrid of low cost and differentiation.
-a company must decide which five basic strategies to employ.

LOW COST PROVIDER STRATEGY
-two options 1)use lower cost edge to underprice competitotrs and attract price sensitive buyers 2) maintain present price and use lower cost edge to earn higher profit margin on each unit sold
-coast saving approaches: capture available economies of scale, taking advantage of experience, operate at full capacity, substitute lower to cost inputs, production technology and design, communication system and info tech, bargaining power, outsourcing or vertical integration, labor productivity and compensation cost.
-revamping value...

Similar Documents

Premium Essay

Literature Review: Strategic Management

...Literature Review: Strategic Management BUSI 600 Business Research Methods Thomas Sheppard Liberty University October12, 2012 Abstract In order to have a successful study, a review of the literature will be undertaken. Then the methods and standards that were used will be addressed, and any questions that are being considered for further research into the area of strategic management will be discussed. From that point, it is vital that conclusions be drawn and recommendations be offered to wrap up the study. Without these components, it is often not clear whether a researcher has a thorough understanding of what the study was designed to do, and it is also not clear if said researcher is certain as to what else should be done in the area and should be questioned when it comes to that particular issue. In short, studies without these components lack completeness and that can make it difficult for anyone in the future to use the study as a jumping off point for similar studies or studies into related issues. The concept of strategic management is one that is highly important to organizations around the world (David, 2009). It involves taking a look at the top management of a company and the resources that management team is using on behalf of the company's owners and in order to show a specific level of performance. The mission, vision, and objectives of the organization must be examined, and it is necessary for them to...

Words: 4173 - Pages: 17

Premium Essay

Strategic-Management

...FACULTY OF BUSINESS MANAGEMENT MGT 790 STRATEGIC MANAGEMENT Course Outline 2011 Course Prescription Strategic Management is the process and practice of managerial decision making and implementation that seeks to create and maintain competitive advantage. In essence it determines the long term performance of a business and as such is the role of the senior executive members to refine but the responsibility of all to roll out. Included in the process is comprehensive environmental scanning, strategy formulation (strategic planning), strategy implementation, and monitoring. Students in this course will review how the strategic decision makers within an organisation first identify, define and analyse commercial problems and then develop practical and ethical solutions. It provides a practical guide for, and an initial experience in, strategy formulation and strategic management. Class time will be largely spent in lecture, discussion, case studies and experiential exercises. Students will learn from the theoretical literature, instructor, case studies, videos, research presentations, and from each other. The course materials explain and describe the different aspects, challenges, and stages of strategic management simply and clearly. Goals of the Course To examine and understand the nature and role of strategy, strategic management and strategic leadership within an organization. Learning Outcomes 1. To develop skills in strategic analysis,......

Words: 1985 - Pages: 8

Premium Essay

Strategic Project Management Made Simple

...Strategic Project Management Made Simple Name Institution Strategic project Management Made Simple According to (Williams, 2009), a strategy is a plan of how to achieve formulated goals. It enables an organization to achieve its vision and its objectives. Strategic planning process determines the path that an organization will follow to meet its goals (Kerzner, 2001). In this paper, my aim is to summarize a review on strategic project management. The report talks about the logical steps of strategic project management process. I agree with the review that strategic management is a critical determinant of the success of an organization. The logical framework primarily involves strategic planning, systems thinking, management by objectives and total quality management. Others incorporated in the structure are scientific method, project management, and team building. In all these steps of logical structure, systems thinking are the foundation of the framework. The review also talks about strategic questions; these questions are also explained in various diagrams. The questions are based on goals, success measures, assumptions, verification, purpose, outcome, and inputs. These questions when combined, they form the logical framework matrix. I agree with this model as it is important in showing the progress made towards achievement of objectives. The review also touches on strategic alignment; this alignment is enabled by the formulation of attainable goals which......

Words: 331 - Pages: 2

Premium Essay

Mastering the Management System

...basic rules: understand the management cycle that links strategy and operations, and know what tools to apply at each stage of the cycle. the Management System by Robert S. Kaplan and David P. Norton NOT LONG AFTER ITS SUCCESSFUL IPO, the Conner Corporation (not its real name) began to lose its way. The company’s senior executives continued their practice of holding monthly one-day management meetings, but their focus drifted. The meetings’ agenda called for a discussion of operational issues in the morning and strategic issues in the afternoon. But with the company under pressure to meet quarterly targets, operational items had started to crowd strategy out of the agenda. Inevitably, the review of actual monthly and forecast quarterly financial performance revealed revenues to be lower, and expenses to be higher, than targeted. The worried managers spent hours discussing how to close the gap through pricing initiatives, capacity downsizing, SG&A staff cuts, and sales hbr.org 1808 Kaplan.indd 63 | January 2008 | Harvard Business Review 6 3 12/5/07 5:32:05 PM | Mastering the Management System campaigns. One executive noted, “We have no time for strategy. If we miss our quarterly numbers, we might cease to exist. For us, the long term is the short term.” Like Conner, all too many companies – including some well-established public corporations – have learned how Gresham’s Law applies to their management meetings: Discussions......

Words: 9164 - Pages: 37

Premium Essay

Strategic Management Tools

...Running head: STRATEGIC MANAGEMENT ANALYSIS TOOLS Strategic Management Analysis Tools XXXXXXXXX XXXXXXX xxxxxxxx Abstract The number of strategic management analysis tools have increased dramatically in the last twenty years. This increase could be a result of a growing demand to meet the new demands this new global market. This literature review aims to outline these articles and findings by concentrating on the strategic management research tools and describing the tools that are the most useful for managers to use. Keywords: tools, strategic analysis, strategic management, strategic planning. Strategic Management Analysis Tools Brief History In recent decades, strategic management research has become so complex and expensive that managers have found it difficult to utilize it effectively. Increasing competition across all industries combined with the ever changing variables such as the economic realities of an expanding global community, have created this market for strategic market analysis tools. Hence, as a method to support managers needs to meet stockholders expectations, a number of tools and methods have been created. Essentially, the problem is there are so many strategic management analysis tools choosing the right one is challenging. Research on strategic analysis is not abundant, despite the numerous reviews on the subject matter. It should be noted that all of the authors of existing reviews state that strategic analysis is the......

Words: 2459 - Pages: 10

Premium Essay

Dissertation Skills

...6.2 Supplementary textbooks Asch, David and Bowman, Cliff (eds.) 1989: Readings in Strategic Management. Basingstoke: Macmillan / Open University. Barney, Jay and Hesterly, William S 2008: Strategic Management and Competitive Advantage: Concepts and Cases (2nd ed). Harlow: Pearson. Capon, Claire 2008: Understanding Strategic Management. Harlow: FT Prentice Hall. Coulter, Mary 2008: Strategic Management in Action (4th ed). Harlow: Pearson David, Fred 2007: Strategic Management: Concepts (11th ed). Harlow: Pearson. De Wit, Bob and Meyer, Ron 1994: Strategy – Process, Content, Context – An International Perspective. Minneapolis et al.: West Publishing. Heracleous, Loizos 2003: Strategy and Organization – Realizing Strategic Management. Cambridge: CUP. Hunger, David J and Wheelen, Thomas L 2007: Essentials of Strategic Management (4th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Johnson, Gerry; Scholes, Kevan and Whittington, Richard 2009: Fundamentals of Strategy. Harlow: FT Prentice Hall. Lynch, Richard 2009: Strategic Management (5th ed.). Harlow: FT Prentice Hall. Macmillan, Hugh and Tampoe, Mahen 2000: Strategic Management – Process, Content and Implementations. Oxford: OUP. Sutherland, Jonathan and Canwell, Diane 2004: Key Concepts in Strategic Management. Basingstoke: Palgrave Macmillan. Further Strategic Management books are available in section 658.4012 in the library. The library catalogue is available on-line at......

Words: 476 - Pages: 2

Premium Essay

Strategic Management

...Sample Assignment Assignment front sheet Qualification | Unit number and title | Pearson BTEC Level 7 Diploma in Strategic Management and Leadership (QCF) | Unit 1 Developing Strategic Management and Leadership Skills | Student name | Assessor name | | | Date issued | Completion date | Submitted on | | | | | | Assignment title | Strategic Management and Leadership Report (1 of 1) | ------------------------------------------------- LO | Learning Outcome | AC | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | 1 | Understand the relationship between strategic management and leadership | 1.1 | Explain the link between strategic management and leadership | 1 | | | | 1.2 | Analyse the impact of management and leadership styles on strategic decisions | 1 | | | | 1.3 | Evaluate how leadership styles can be adapted to different situations | 1 | | 2 | Be able to apply management and leadership theory to support organisational direction | 2.1 | Review the impact that selected theories of management and leadership have on organisational strategy | 1 | | | | 2.2 | Create a leadership strategy that supports organisational direction | 2 | | 3 | Be able to assess leadership requirements | 3.1 | Use appropriate methods to review current leadership requirements | 3 | | | | 3.2 | Plan for the development of future situations requiring leadership | 3 | | 4 | Be able to plan...

Words: 857 - Pages: 4

Premium Essay

The National Bank

...Case study 2: Second National Bank 1. What do you think of the idea of having an annual off-site retreat for top management to develop the strategic plan for the organization? In my opinion, it is not a good idea because in many situations, top managers are not someone who involved directly to the strategic plan. Their main responsibility is to manage is focused on macro management process; as a result, many of them do not remember primary categories of the strategic plan; for example, in this case study, they did not even bring any copy of the plan to their meetings. Meanwhile, middle level and low level managers tend to deal with different kind of projects which are based on the strategic plan in more details. Consequently, they could figure out if the strategic plan is good enough and how it could be improved. Besides that, one of the most important factors which help recognize if it is the effective strategic plan is the strategy reviews from middle level and low level managers. However, via this case study, we can realize that no one in top management brings any review to the meetings. I think it is a really bad situation, since how the top management could adapt the plan based on the outcomes of those reviews. 2. Critique the planning process for the Second National Bank Firstly, the strategic planning of the Second National Bank should comply with organization’s mission and vision Mission: Provide excellent bank services Vision: “Exxor County’s Friendliest......

Words: 646 - Pages: 3

Premium Essay

Strategic Management

...This article was downloaded by: [Academy of Management] On: 11 February 2014, At: 16:20 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK The Academy of Management Annals Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rama20 An Aspirational Framework for Strategic Human Resource Management Susan E. Jackson , Randall S. Schuler & Kaifeng Jiang a b a a School of Management and Labor Relations, Rutgers University b Mendoza College of Business, University of Notre Dame Accepted author version posted online: 04 Dec 2013.Published online: 04 Dec 2013. To cite this article: Susan E. Jackson, Randall S. Schuler & Kaifeng Jiang (2014) An Aspirational Framework for Strategic Human Resource Management, The Academy of Management Annals, 8:1, 1-56, DOI: 10.1080/19416520.2014.872335 To link to this article: http://dx.doi.org/10.1080/19416520.2014.872335 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and......

Words: 23604 - Pages: 95

Premium Essay

Sample

...Sample Assignment Assignment front sheet Qualification Unit number and title Pearson BTEC Level 7 Diploma in Strategic Management and Leadership (QCF) Unit 1 Developing Strategic Management and Leadership Skills Student name Assessor name Date issued Completion date Submitted on Assignment title Strategic Management and Leadership Report (1 of 1) LO Learning Outcome AC In this assessment you will have the opportunity to present evidence that shows you are able to: Task no. Evidence (Page no) 1 Understand the relationship between strategic management and leadership 1.1 Explain the link between strategic management and leadership 1 1.2 Analyse the impact of management and leadership styles on strategic decisions 1 1.3 Evaluate how leadership styles can be adapted to different situations 1 2 Be able to apply management and leadership theory to support organisational direction 2.1 Review the impact that selected theories of management and leadership have on organisational strategy 1 2.2 Create a leadership strategy that supports organisational direction 2 3 Be able to assess leadership requirements 3.1 Use appropriate methods to review current leadership requirements 3 3.2 Plan for the development of future situations requiring leadership 3 4 Be able to plan the development of leadership skills 4.1 Plan the development of leadership skills for a specific......

Words: 857 - Pages: 4

Premium Essay

Strategic Management Practices

...banking industry in addition to competition in market is getting intense day by day. The management is required to optimally deploy its resources for enhancing profitability and growth of business. The need of minimizing to vulnerability of depending on single market is also crucial and required business expansion in different regions. It is therefore necessary for the management of the bank to strategically utilize its limited resources so that the growth of the bank can be maintained in the competitive environment. The role of management practices is crucial in ensuring the business growth but necessary to be aligned with the rapidly changing behavior of market. It was highlighted by Charles Hill & Dr. Jones (2007; pp. 335) that management enhances its skills for exploring new business opportunities and deploys its resources to fulfil the needs of market. In this regard the strategy of business is also required to be appropriate so that it can enable the management to attain its goals. These measures particularly enhance the management skills through which the influence of market environment on operations can be ascertained. It is therefore crucial for the management to adopt appropriate strategy because it helps in strategically managing the operations of bank. Through strategic management practices the growth of bank can be instigated in the market. In this project, strategic management practices of the Royal Bank of Scotland (RBS) are explored. 2. Research......

Words: 3307 - Pages: 14

Premium Essay

A Critical Review of ‘the Fall and Rise of Strategic Planning’

...A Critical Review of ‘The Fall and Rise of Strategic Planning’ The arrival of strategic planning had attracted general attention because it implanted in managers’ minds a kind of imperative about the process that was rational and future-oriented (Mintzberg et al, 1998). Nevertheless, Whittington (2001:4) observed, “the plan is bound to get forgotten as circumstances change”. The purpose of this essay is to critically review ‘The Fall and Rise of Strategic Planning’. Firstly, the position of this article in the wider debate will be given followed by its theoretical underpinnings and its main strengths and weaknesses respectively. A conclusion will be drawn on the article’s contribution to the field of business strategy. The article’s position falls in between Whittington’s classical and processual approaches. On one hand, Mintzberg challenged the traditional classical planning and progressed towards the processual approach through identifying three fundamental fallacies. Firstly, classicalists held conventional wisdom that the world was sufficiently stable that today’s planning could forecast and fit market changes (Whittington, 2001). However, Mintzberg (1994:110) took the fresh view that the prediction of discontinuities was “virtually impossible” through questioning Ansoff’s “extraordinary statement”. Hogarth and Makridakis (1981) strengthened that longterm prediction was notoriously imprecise. If Wilbur Wight had anticipated the prevalence of airplanes......

Words: 2580 - Pages: 11

Premium Essay

Unknown

...The Execution Premium: Linking Strategy to Operations for Competitive Advantage (HBS Press) shows managers how to weave organizational principles into a more effective management system that respects the differences between strategy and operations yet integrates them in a powerful way. Kaplan and Norton introduced the Balanced Scorecard, a performance measurement system, in 1992. The Execution Premium is their fifth book as coauthors. Kaplan recently explained the ideas behind The Execution Premium and how they bridge the common divide between strategy and operations. Q: What particular issues around execution need to be better addressed in business? A: There are two key issues. First is leadership. Without strong visionary leadership, strategy will not be executed effectively. The second key issue is to recognize that strategy and operations (or tactics) are both important but different. The normal course of events is for companies to focus on day-to-day operations and short-term problem solving. Management meetings focus on fighting fires and fixing problems. Often little time and few resources are committed to strategic issues. We don’t advocate abandoning an intense focus on operations and their improvement. But we do advocate that planning strategy, not just describing it, is important. The senior management team needs to have regular, probably monthly, meetings that focus...

Words: 2607 - Pages: 11

Premium Essay

Strategic Management, C Orporate Responsibility and S Takeholder Management Integrating Corporate Responsibility Principles and Stakeholder Approaches I Nto Mainstream Strategy: a Stakeholder-Oriented and I Ntegrative Strategic M Anagement Framework

...Strategic management, corporate responsibility and stakeholder management Integrating corporate responsibility principles and stakeholder approaches into mainstream strategy: a stakeholder-oriented and integrative strategic management framework Takis Katsoulakos and Yannis Katsoulacos Takis Katsoulakos is a Director at INLECOM Ltd, Burgess Hill, West Sussex, UK. Yannis Katsoulacos is a Professor at Athens University of Economics and Business, Athens, Greece. Abstract Purpose – The purpose of this article is to establish a strategic management framework that supports the integration of corporate social responsibility principles and stakeholder approaches into mainstream business strategy. Design/methodology/approach – A top-down and bottom-up approach was used to develop the proposed framework. The top-down approach focused on analyzing the main strategic management theories including social responsibility movements to identify complementary concepts and create a relevant topology. The bottom-up approach was based on empirical research on the views of business companies on corporate social responsibility, a review of best practices and case studies mainly in Greece. Findings – The paper describes a stakeholder-oriented integrative strategic management framework linking the main strategic management theories across value, responsiveness and responsibility dimensions. A mathematical model is presented describing the synergistic development of advantage-creating knowledge......

Words: 7389 - Pages: 30

Premium Essay

The Evolving Role of Strategic Management Development

...Journal of Management Development The evolving role of strategic management development Paul Brown Article information: To cite this document: Paul Brown, (2005),"The evolving role of strategic management development", Journal of Management Development, Vol. 24 Iss 3 pp. 209 - 222 Permanent link to this document: http://dx.doi.org/10.1108/02621710510584035 Downloaded by Universitas Pendidikan Indonesia At 20:32 22 February 2015 (PT) Downloaded on: 22 February 2015, At: 20:32 (PT) References: this document contains references to 29 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 9372 times since 2006* Users who downloaded this article also downloaded: David Lamond, Lee D. Parker, Philip Ritson, (2005),"Fads, stereotypes and management gurus: Fayol and Follett today", Management Decision, Vol. 43 Iss 10 pp. 1335-1357 http:// dx.doi.org/10.1108/00251740510634903 Marilyn M. Helms, Judy Nixon, (2010),"Exploring SWOT analysis – where are we now?: A review of academic research from the last decade", Journal of Strategy and Management, Vol. 3 Iss 3 pp. 215-251 http://dx.doi.org/10.1108/17554251011064837 Uma D. Jogulu, (2010),"Culturally-linked leadership styles", Leadership & Organization Development Journal, Vol. 31 Iss 8 pp. 705-719 http://dx.doi.org/10.1108/01437731011094766 Access to this document was granted through an Emerald subscription provided by 601976 [] For Authors If you would like to......

Words: 6997 - Pages: 28