Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
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 offs 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
companies selling ideas and relationships as well as indirect sources of competitive
advantage for all companies trying to differentiate themselves from rivals by how they
create value for their customers.
Enhancing employee involvement in the strategic management process- develop and
