Introduction to Strategic Management

A strategy' is a long term direction of an organization. Strategic decisions are not only about the long-term direction of an organization and the scope of an organization's activities. They are also about gaining advantage over competitors, addressing change in the business environment and building on resources and capabilities as well as the values and expectations of stakeholders. In an organization not only top manager, but also middle and lower level managers are concerned with the strategy.

A strategy has three horizons:

  1. Horizon 1: Extend and defend the core business
  2. Horizon 2: Build emerging businesses
  3. Horizon 3: Create viable options

Besides the horizons, a strategy has also different levels:

  • Corporate-Level Strategy: overall purpose and scope of an organization
  • Business-Level Strategy: way a business seeks to compete successfully in its particular market
  • Operational Level Strategy: how different parts of the organisation deliver the strategy in terms of managing resources, processes and people

A strategy has three branches: Context, Content and Prozess.

The context concerns internal as well as external factors. The research deals with the industry analysis, the cultural analysis as well the resource-based view. The strategic position is a impact on the strategy of the external environment on the organization's strategic capabilities, goals and culture.

The content is about strategic options and the research deals with choices performance. A strategic choice involves the options for strategy in the directions in which strategy goes and its methods.

  • Business (competition, differentiation)
  • International (new markets, options)
  • Corporate (scope or organization)
  • Innovation (essential to survive!)
  • Acquisitions and Alliances

The process includes the formation and implementation. It's research includes strategic planing, choice and change as well as strategy-as-practice. A strategy in action is about how strategies are formed and how they are implemented. They include: processes, evaluation, organizing, changing and practice.