Nature of Strategic Management

13243 Words Jun 17th, 2011 53 Pages
Fred R. David
"Strategic Management. Concepts and Cases", 9th edition, Pearson Education, Inc., 2003
ISBN 0-13-112372-6

Chapter 1: S.N. Levine, The Investment Managers Handbook, Irwin Professional Publishing

CHAPTER OUTLINE

What Is Strategic Management?
Key Terms in Strategic Management
The Strategic-Management Model
Benefits of Strategic Management
Why Some Firms Do No Strategic Planning
Pitfalls in Strategic Planning
Guidelines for Effective Strategic Management
Business Ethics and Strategic Management
Comparing Business and Military Strategy
The Nature of Global Competition

CHAPTER OBJECTIVES

After studying this chapter, you should be able to do the following:
1. Describe the strategic-management process.
2. Explain the need for
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The price and quality of a firm's products and services must be competitive on a worldwide basis, not just on a local basis. A "Global Perspective" box is provided in all chapters of this text to emphasize the importance of global factors in strategic management. A second theme is that electronic commerce (e-commerce) has become a vital strategic-management tool. An increasing number of companies are gaining a competitive advantage by using the Internet for direct selling and for communication with suppliers, customers, creditors, partners, shareholders, clients, and competitors who may be dispersed globally. E-commerce allows firms to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, eliminate paperwork, and share information. In total, e-commerce is minimizing the expense and cumbersomeness of time, distance, and space in doing business, thus yielding better customer service, greater efficiency, improved products, and higher profitability. The Internet and personal computers are changing the way we organize our lives; inhabit our homes; and relate to and interact with family, friends, neighbors, and even ourselves. The Internet promotes endless comparison shopping, which thus enables consumers worldwide to band together to demand discounts. The Internet has transferred power from business to individuals so swiftly that in another decade there may be "regulations" imposed on groups of consumers. Politicians may

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