CHAPTER 1 – INTRODUCING
THE CONCEPTS
Katie Ficken
Ryan Lacy
Kelsey Combest
Taylor Stevenson
STRATEGIC MANAGEMENT IN ACTION
Learning Outcomes




Why strategic management is important
What strategic management is
Who’s involved with strategic management
Three important factors impacting strategic
management today
Why Strategic Management is Important


Everyone in an organization plays a role in
managing strategically.
Strategic management can make a difference in
how well an organization performs; helps deal with
continually changing situations; and helps in
coordinating various divisions, functions, and work
activities.
What Strategic Management Is

The Basics of Strategy and Strategic Management
 Strategies:
an organization’s goal-directed plans and
actions that align its capabilities and resources with the
opportunities and threats in its environment.
 Strategic management: a process of analyzing the current
situation, developing appropriate strategies, putting those
strategies into action, and evaluating and changing those
strategies as needed.
 Strategic management is interdisciplinary, has an external
and internal focus, and involves future direction.
What Strategic Management Is

The Strategic Management Process
What Strategic Management Is

The Strategic Management Process
 Situation
Analysis – scanning and evaluating the current
organizational context & external environment.
 Strategy Formulation – developing and then choosing
the appropriate strategies.
 Functional
strategies (operational strategies)
 Competitive strategies (business strategies)
 Corporate strategies
What Strategic Management Is

The Strategic Management Process
 Strategy
Implementation – putting the various
strategies into action.
 Strategy Evaluation – evaluating both the outcomes of
the strategies and how they’ve been implemented, and
making modifications as needed.
Who’s Involved With Strategic Management

Three main groups who play key roles in the
strategic management process:
 The
Board of Directors – an elected group that
represents a company’s shareholders.
 Bill
Campbell
 Steve Jobs
 Al Gore
Who’s Involved With Strategic Management
 Top
Management Team – typically the chief executive
officer (CEO) and other executive or senior managers
such as a chief operating officer (COO), chief financial
officer (CFO), chief information officer (CIO), and
others.
 Steve
Jobs, CEO
 Timothy Cook, COO
 Peter Oppenheimer, CFO
 Other
Mangers & Organizational Employees –
individuals that put the strategies into action and
evaluate them.
Who’s Involved With Strategic Management

Top management’s role involves strategic leadership: the
ability to anticipate, envision, maintain flexibility, think
strategically, and work with others in the organization to
initiate change that will create a viable and valuable
future for the organization.
Establishing
Appropriately
Balanced
Controls
Emphasizing
Ethical
Decisions and
Practices
Determining
Organization’s
Purpose or
Vision
Exploiting and
Maintaining
Core
Competencies
Effective
Strategic
Leadership
Developing
Human Capital
Creating and
Sustaining
Strong
Organizational
Culture
Important Factors Impacting Strategic
Management Today



The Global Economy & Globalization
Corporate Governance
E-business
Apple, Inc.
2009 Sales
iPods 19% of total sales
iPhones 30% of total sales
Takeaways

Why is strategic management important?
 It
allows individuals to work more effectively and helps
improve organizational performance.

What is strategic management?
 The
process of analyzing the current situation,
developing appropriate strategies, putting those
strategies into action, and evaluating and changing
those strategies as needed.

Who is involved with strategic management?
 Everyone!
References



“Apple, Inc.” Hoover's Company
Records. 1 September 2010 Hoover's Company
Records, ProQuest. Web. 4 Sep. 2010
www.apple.com
"A Strategic Analysis of Apple Corporation".
http://www.scribd.com/doc/11983566/AStrategic-Analysis-of-Apple-Corporation .