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Strategic Management

Submitted by spornick on April 22, 2006

Category: Business
Words: 1722 | Pages: 7
Views: 856
Popularity Rank: 7,377
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Chapter 1- Strategic management, creating competitive advantage

Strategic management consists of the analysis, decisions and actions of an organisation in order to create and sustain competitive advantage.

2 main elements of strategy
i.ongoing process of analysis, decisions and actions
ii.to study why some firms outperform others.

Michael Porter argues that sustainable competitive advantage cannot be achieved through operational effectiveness alone.

4 key attributes of strategic management
i.direction toward overall organisational goals and objectives - “organisational versus individual rationality”
ii.management includes multiple stakeholders in decision making
iii.management requires incorporating both short term and long term perspectives - “creative tension”
iv.management involves the recognition of trade off\'s between effectiveness and efficiency - “doing the right thing” versus “doing things right”.

Henry Mintzberg- in his view, the business environment is far from predictable, thus limiting out ability for analysis. Further, decisions in an organisation are seldom based on optimal rationality alone, given the political processes that occur in all organisations.

Therefore, there are \'intended/ deliberate strategies\', \'unrealised strategies\' and \'emergent strategies\'.

2 alternative perspectives to stakeholder management
i.\'Zero-sum\'- looks upon various stakeholders as competing for attention an resources of the organisation. This perspective is rooted, in part, in the traditional conflict between workers and management.
ii.Symbiosis- organisations can achieve mutual benefits when recognising that stakeholders are dependent
upon each other for their success and well-being.

Intellectual capital- knowledge has become the direct source of competitive advantage for...

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