5 Force

SUMMARY OF CHAPTER 1: THE NATURE OF STRATEGIC MANAGEMENT

The First chapter introduces strategic management, the set of decisions and actions that result in the design and activation of strategies to achieve the objectives if an organization. The chapter provides an overview of the nature of benefits, and terminology of and the need for strategic management. This chapter emphasizes the practical value and benefits of strategic management for a firm. It also distinguishes between a firm's strategic decisions and its other planning tasks.

The section stresses the key point that strategic management activities are undertaken at three levels: corporate, business, and functional. The distinctive characteristics of strategic decision making at each of these levels affect the impact of activities at these levels on company operations. Other topics dealt with in this section are the value of formality in strategic management and the alignment of strategy makers in strategy formulation and implementation. The section concludes with a review of the planning research on business, which demonstrates that the use of strategic management process yields financial and behavioral benefits that justify their costs.

Besides, it also presents a model of the strategic management process. The model, which will serve as an outline for the remainder of the text, describes approaches currently used by strategic planners. Its individual components are carefully defined and explained, as is the process for integrating them into the strategic management process.

SUMMARY OF CHAPTER 2: THE BUSINESS VISION AND MISSION

From this chapter, we can say that every organization has unique purpose and reason for being. This uniqueness should be reflected in vision and mission statement. The nature of business vision and mission can represent at either a competitive advantage or disadvantage for the firm. An organization achieves a heightened sense of purpose when strategists, managers,...