Taken from Management by Richard L Daft, 9th Edition

1. Management by Richard L Daft
9th Edition

2.  Proverbs 16:3 “Commit to the LORD
whatever you do, and your plans will
succeed.”

3.  The plan of action that prescribes reserve
allocation and other activities for dealing with
the environment, achieving competitive
advantage and attaining organizational goals.
 Competitive advantage- what set the
organization apart from others and provides
it with a distinctive edge in the market place.

4.  To take the long term view and to take and to
see the big picture, including the
organization and the competitive
environment and, conside how they fit
together.

5.  Set of decisions and actions used to
formulate and execute strategies that will
provides competitively superior fit between
the organization and environment so as to
achieve organizational goals.

6.  Core competence- is something the
organization does especially well in
comparison to its competitors.
 Build synergy- when organizational parts
interact to produce a joint effect that is
greater than the sum of the parts acting alone
synergy occurs.
 Deliver Value- combination of benefits
received and cost paid.

7. Corporate level strategy(what business are we in?)
 Organization as a whole
 Business units and product lines that make up
the corporate entity.
Business level strategy (how do we compete?)
 Pertains to each business unit or product line.
 Concern amount of advertising,direction and
extent of research and development,product
changes etc.
Functional level strategy (how do we support the
business level strategy?)
 Pertains to the major functional department
within business units

8. Three Levels of Strategy in Organizations

9. The Strategic Management Process

10. Strategy formulation
 Include assessing the
external and internal
problems and
integrating the results
into goals and
strategy.
Strategy execution
 Use of managerial and
organizational tools to
direct resources
toward accomplishing
strategic results
 Administration and
implementation of the
strategic plan.

11.  Includes a search for strengths, weakness,
opportunities and threat that affect
organizational performance.

12.  Strengths – positive internal
characteristics that the organization can
exploit to achieve its strategic
performance goals.
 Weakness – internal characteristics that
might inhibit or restrict the organization
performance

13.  Threats – are the characteristics of the
external environment that may prevent the
organization on achieving its strategic
goals.
 Opportunities- are characteristics of the
external environment that have the
potential to help the organization achieve
or exceed its strategic goals.

14. Checklist for Analyzing Organizational
Strengths and Weakness

17.  The organization’s mix of strategic business units and
product lines that fit together in such a way as to provide the
corporation with synergy and competitive advantage.
 A division of the organization that has a unique business
mission, product line, competitors, and markets relative to
other SBUs in the same corporation.
 A concept developed by the Boston Consulting Group that
evaluates strategic business units with respect to the
dimensions of business growth rate and market share.

20.  Moving into a new business that is related to the
company’s existing business activities.
 A strategy of moving into new lines of business.
 Expanding into a totally new line of business.
 Expanding into businesses that either produce the supplies
needed to make products or that distribute and sell those
products.

24.  A type of competitive strategy with which the organization
aggressively seeks efficient facilities, cuts costs, and employs
tight cost controls to be more efficient than competitors.
 A type of competitive strategy with which the organization
seeks to distinguish its products or services from that of
competitors.
 A type of competitive strategy that emphasizes concentration
on a specific regional market or buyer group.

28.  managers focus on
◦ leveraging and developing more from the firm’s
existing assets, capabilities, and core competencies
◦ The idea is that getting growth out of existing
businesses is cheaper and more effective than
trying to buy it from outside

30.  Collaboration with other organizations
(competitors) is an important part of how
today’s successful companies enter new areas
of business

31. National Broadcasting
Corporation
Vivendi Universal

34.  Standardization of product design and
advertising strategies throughout the world
 Can help the organization reap efficiencies by
product standardization
 people everywhere want to buy the same
products and live the same way

36.  Modification of product design and
advertising strategies to suit the specific
needs of individual countries
 Some companies reject the idea of single
global market

38.  Combines global coordination to attain
efficiency with flexibility to meet specific
needs in various countries
 Global integration and national
responsiveness
 World market operations

44.  According to Porter (1996) companies must
be adapt and flexible when it comes to
responding to the drastic changes in the
business industry.
 Strategic positions are based on customer’s
requirements
 Strategy needs to be expand as a horizon and
should not be of a single, planning cycle