short essay about strategy business management


1. Access the ESPN One Nacíon website: Read the article and view the video regarding the need for MLB managers to learn Spanish.3. Integrate strategic concepts according PPTs attached (e.g., external environment analysis, strategies, competitive advantage, and career planning ).4. No more than one page


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Chapter 2: Business Vision & Mission
Vision Statement
• Basic Question:
What do we want to become?
• Definition:
A desirable future state of the firm.
(David, 2005)
Mission Statement
• Basic Question:
What is our business (David, 2005)?
• Definition:
The firm’s purpose and basis of competition
(Dess and Lumpkin, 2003).
Mission: Names?

A Creed Statement
A Statement of Purpose
A Statement of _philosophy___________________
A Statement of Beliefs
A Statement of _business principles___________________
A Statement “Defining Our Business”
(David, 2005)
Mission: 9 Components
(David, 2005)
Customers: Who are the firm’s customers?
Products/Services: What are the firm’s major products/services?
Markets: Geographically, where does the firm compete?
Technology: Is the firm technologically current?
Concern for Survival, Growth, and Profitability: Is the firm committed
to growth and financial soundness?
Philosophy: What are the basic _beliefs___, _values____,
_aspirations_________, and ethical priorities of the firm?
Self-Concept: What is the firm’s __competitive
Concern for Public Image: Is the firm responsive to social, community,
and environmental concerns?
Concern for Employees: Are employees a valuable firm asset?
Vision vs. Mission
1. Established __first____.
2. Short: One sentence.
3. What do we want to
4. Future oriented.
5. Purpose (Dess & Lumpkin, 2003)
6. Reexamined annually.
(David, 2005)
1. Follows vision.
2. Less than _200–250__
words & 9 components.
3. What is our business?
4. Present orientation.
5. Purpose & basis of
competition (Dess & Lumpkin,
2003) .
6. Reexamined annually.

(Dess & Lumpkin, 2003)
Suppliers (goods, services, and capital)
__community at large_____________
Stakeholder Mgt (Dess & Lumpkin, 2003)
• Symbiosis or __Interdependence_____: Hey,
we are in this thing together!
• Zero-sum or Independence: Every man for
himself or the closed system (A+B+C+D+E=0).
Stakeholder Satisfaction and Returns
• Person earns below national
income average: $12,000/yr
• Person earns national income
• BA Returns
Can’t minimally satisfy all
stakeholders, so minimize
support lost.
• Person earns above national
• A Returns
income average:
Can’t maximize all stakeholder
interests, so meet minimum
• AA Returns
Easy to satisfy all stakeholders.
(Hitt, Ireland, Hoskisson, 2005)
Mission Statement Exercise!
(See Mission Statement handout.)
Chapter 3: The External Environment
Two Theories of Competitive Advantage (CA)
• External Environment
• Major Proponent:
Michael Porter (1980)
• Model:
• Research &Profitability:
• Internal Environment
• Major Proponent:
Jay Barney (1991)
• Research & Profitability:
I/O Model
• Find an ATTRACTIVE INDUSTRY and implement the strategy
dictated by its characteristics.
• Assumptions:
1. External environment imposes constraints.
2. Most firms: similar resources/similar strategies.
3. Resources are HIGHLY MOBILE across firms.
4. Decision makers are rational and maximize profits.
(Hitt, Ireland, Hoskisson, 2005)
RBV Model
• A firm’s strategy should be based on its unique bundling of
resources and capabilities:
1.Valueable: Exploit opportunities/Neutralize threats.利用机
2. Rare: Possessed by few.
3. Inimitable: Cannot be imitated.不能被模仿
4. Nonsubstitutable: No functional equivalents.(机器)不可
• Assumptions:
1. Firms acquire different resources and develop unique
2. Resources may not be highly mobile across firms.
(Hitt, Ireland, Hoskisson, 2005)
RBV: Sources of Inimitability
1. Physically Unique (e.g., a resort, patent)独特(专利,或者度假胜
Example: Disney World
2. Path Dependency (Historical)
Example: New Computer Specialist: Demand= 30k, Supply= 10K(CS人才供不
3. Causal ambiguity (i.e., Can’t disentangle the causes)因果模糊性
Example: Recipe
4. Social Complexity (i.e., Complex relations)复杂人际关系
Example: Employees work well together
RBV Matrix
BA Returns
Competitive Parity
A Returns
Tempory CA
A to AA Returns
Sustainable CA
Inimitable Non-substitutable
Note: You must also generate a matrix for the Intangible Resources.
Key Vocabulary
• Opportunity: A condition in the general
environment that the firm can exploit to
achieve strategic competitiveness.
• Threat: A condition in the general
environment that may hinder a firm.
• Industry: A group of firms producing similar
External Environment
• General Environment
• Industry Environment
• Strategic Groups
General Environment
(Hitt et al., 2005)
• General Environment consists of the broader societal dimensions that
influence an industry and its firms.
1. Demographic Segment (Paper里面每个Segment需要3个programme)
Population’s size as well as age, geographic, ethnic, and income distributions.
2. Economic Segment
Refers to nature and direction of the economy in which the firm competes.
3. Political/Legal Segment
Refers to the body of laws guiding interactions: firms & nations.
4. SocioCultural Segment
Concerned with a society’s attitudes & cultural values.
5. Technological Segment
Includes institutions & activities involved with creating new knowledge and
translating it into new outputs.
6. Global Segment
Consists of activities among 2 or more nations.
External Environment Analysis
(Dess, 2003; Hitt et. al., 2005)
Changes & Trends (CTs)
Evolution of CTs
Predict Outcome of CTs
Impact of CTs on Firm
Set of data the firm gathers to better understand competitor’s objectives, strategies, assumptions,
and capabilities.
Industry Environment
(Hitt et al., 2005)
• Industry Environment: The set of factors that directly
influences a firm and its competitive actions and responses.
• Threat of New Entrants (新进入者的威胁)
• Threat of Substitute Products(替代产品的威胁)
• The Bargaining Power of Suppliers (供应商的议价能力)
• The Bargaining Power of Buyers(购买商的议价能力)
• Intensity of Rivalry(对抗强度)
(See Five Forces Checklist.)
Strategic Groups
(Hitt et al., 2005)
• Strategic Groups a set of firms emphasizing similar strategic
dimensions to use a similar strategy.
• Implications:
1. Rivalry more intense within groups.
2. Rivalry increases with proximity of groups.
3. The strengths of the 5 forces differ across groups.
Porter’s Five Forces Analysis—U.S. Labor Market
• Application: My Example
• (See the My 5 Forces handout.)
External Factor Evaluation Matrix
• An EFE Matrix allows strategists to
summarize and evaluate the general and
industry environments.
• Total Weighted Scores range from 1 to 4:
1. TWS = 4: Outstanding OT Response
2. TWS = 1: Poor OT Response
(David, 2007)
EFE Matrix: 5 Steps
List Factors: Opportunities (5-10), Threats (5-10)
Assign WEIGHTS (sum=1.0) that indicate relative importance of factor
to industry success:
Not Important= 0.0
Very Important= 1.0
Assign Rating (1 to 4) to each factor to indicate the effectiveness of the
firm’s strategic response (strategies):
Superior Response= 4
Average Response= 2
(David, 2007)
Above Average Response= 3
Poor Response= 1
Determine Weighted score: Factor Weight X Factor Rating
Determine Total weighted score: Sum weighted scores
Competitive Profile Matrix
(David, 2007)
• The CPM identifies a firm’s major competitors as well as its
Strenghts and Weakness.
• The weights and TWS in CPM and EFE have the same meaning.
• Factor ratings refer to strengths and weaknesses:
Major Strength= 4
Minor Strength= 3
Minor Weakness= 2
Major Weakness= 1
Chapter 3: Conclusion
• What? The External Environment
• Why? Affects firm performance.
1. ID _opportunities & threats___________
2. Industry explains ___20%______ of a firm’s profitability.
• How?
• Who?
External Environment Analysis
Five Forces Analysis
Michael Porter (1980)
Chapter 1: Strategic Management
Effective Leaders
Begin with the end in mind!
(Steven Covey)
• Strategic management seeks to explain why/how some
firms ( people,orgonizations,nationa______) outperform
• According to research, eight areas affect firm performance:
–Organizational Culture
–Strategic Alliances
–Profit Orientation
Key Vocabulary #1
• Strategic Leadership is the ability to
anticrpate,envision,maintain,flexibility___ and empower
others to create strategic change as necessary.
• Human Capital refers to the _knowledge and
skills___________________ of a firm’s entire workforce.
(Hitt, Ireland, Hoskisson, 2005)
• Organization Culture: (See General Mgt Functions.)
Key Vocabulary #2
• Strategic Management Process consists of the
_cisions,actions______ that firms take to gain/sustain a
competitive advantage or at least become strategically
• Strategic Competitiveness is achieved when a firm
successfully formulates and implements a _valuecreating,strategy______.
• Strategy: a __set of actions__________________ taken by the
firm to gain/sustain a competitive advantage; it requires a
commitment of resources.
(Hitt, Ireland, Hoskisson, 2005)
Key Vocabulary #3
• Competitive Advantage exists when the firm implements a
value-creating strategy that competitors cannot _
• Strategic Flexibility is a set of capabilities used to respond to
environmental changes.
• Capability is the capacity for a set of resources to perform a
• Resources are the firm’s inputs__ into its production process,
such as finances, employee skills, equipment, etc.
(Hitt, Ireland, Hoskisson, 2005)
Key Vocabulary #4
• Core Competencies are resources and
capabilities that serve as a source of
___competitive advantage for a firm over its
• Stakeholders are the individuals/groups who
affect and are affected by the firm’s strategic
outcomes; they have enforceable claims on a
firm’s performance.
(Hitt, Ireland, Hoskisson, 2005)
Top Management Team
• TMT is composed of key managers who are responsible for
selecting and implementing the firm’s strategies:
a. Officers with the title of _VP____ or above
b. Members of the __Board of dirctors____
• A heterogeneous TMT consists of diverse
a. __Functional backgrounds_____________
b. _____Experience__________
c. ___Education____________
(Hitt, Ireland, Hoskisson, 2005)
TMT Relations #1

Quality of TMT Decisions
TMT Heterogeneity
Degree of Expertise
↓ Cohesion
↑ Size
↑ Heterogeneity
(Hitt, Ireland, Hoskisson, 2005)
TMT Relations #2

TMT Heterogeneity
Decisions (or better decisions)
Firm Performance
Communication among diverse TMT members can be facilitated
through _electronic_ communications, sometimes reducing the
barriers present in face-to-face meetings.
( Hitt, Ireland, Hoskisson, 2005)
TMT Decisions and Actions
• Determine the firm’s __directions__ (or
• ___Design____ the organization’s structure.
• Develop the firm’s __reward systems___.
• Nurture an excellent/ethical __culture____.
(Hitt, Ireland, Hoskisson, 2005)
Strategic Management Process

Vision & Mission Statements
LT Objectives
• (David, 2005: See SM Process Diagram.)
Balanced Scorecard
• A control technique. (Hint: A General Mgt Function)
• Organizational controls: Information-based procedures
(rules/standards/benchmarks) used by managers to achieve
desired outcomes.
Financial Controls
– View:
– Focus:
Strategic Controls
Short-term Outcomes
Long-term Content
Past Performance Future Viability
• Premise: Firms jeopardize future performance possibilities
when financial controls are emphasized at the expense of
strategic controls.
(Hitt, Ireland, Hoskisson, 2005)
Balanced Scorecard Example
Firm Growth &
1. Annual Sales Growth>5%
2. Profit Margin>10%
Perceived Value
1. Service Time<5 Minutes 2. Repeat Business>50%
Internal Business Organizational
Learning &
Innovative Climate
1. 28% ≤COGS≤ 30%
2. Waste < ½% of Sales 1. Intro 1 New Product/Qtr 2. College Reimbursement Program=1% profits Subfields of Strategy 1. 2. 3. 4. 5. 6. 7. 8. Management/Leadership Decision-Making Level Strategies Organizational Culture Entrepreneurship Strategic Alliances Profit Orientation (Nonprofits) Ethics/Values SS#1: Management/Leadership • General Management Functions 1. __planning_____________ 2. __leading_____________ 3. __organizing_____________ 4. ___controlling____________ (Hellriegel, Slocum, Jackson, 2002) • Men vs. Women: 1. Men (“tend” to means average) be task oriented/have a _directive style_________. 2. Women (“tend” to) be relationship oriented/have a __participative style_. SS#2: Decision-Making • Speed • Quality 1. TMT Heterogeneity (Breadth of Knowledge) a. Functional Backgrounds b. Experience c. Education 2. Degree of Expertise (Depth of Knowledge) 3. Cohesiveness 凝聚力 (Hitt, Ireland, Hoskisson, 2005) SS#4: Organizational Culture • Organization culture is a system of shared ___values_______ (what is important) and ___beliefs_______ (how things work) that shape a company’s people, organizational structures, and control systems to produce __behavioral norms____________ (the way we do things around here). (Dess and Lumpkin, 2003) SS#6: Strategic Alliances #1 • Partnership survival or success is contingent upon identifying a promising partner with complementary skills and making sure __goals________, _values_________, and ___work habits_______ are compatible. (Longnecker, Moore, Petty, Palich. 2006) • Employers and employees actually enter into a partnership/strategic alliance with each other! SS#6: Strategic Alliances #2 • Business Partnerships: More than 50%_fail! • U.S. Marriages: More than _50%_ fail! • Wise Saying: Can two walk together except they be agreed? SS#8: Ethics/Values • Organizational outcomes—both strategies and effectiveness—reflect the values of powerful organizational actors, and there is a positive association between firm profitability and these values. (Hambrick and Mason, 1984) Deliberate vs. Emergent Strategies B Intended strategy DELIBERATE STRATEGY UNREALIZED STRATEGY A: Identify emergent strategies B: Change intentions Realized strategy A EMERGENT STRATEGY (Mintzberg and Waters, 1985) Conclusion • What? Strategic Management • Why? Strategic leaders affect firm performance through their decisions and actions. • How? The Strategic Management Process • Who? B.F. Skinner (1969): Behavior is a function of its consequences. ... Purchase answer to see full attachment

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