tailieunhanh - Chapter 1 - Introducing Strategic Management

Understand what a strategy is and identify the difference between business-level and corporatelevel strategy. Recognize the difference between a fundamental and a dynamic competitive advantage. Describe the determinants of competitive advantage. Understand why we study strategic management. | Chapter 1 Introducing Strategic Management OBJECTIVES 1 2 3 4 5 Understand why we study strategic management Recognize the difference between a fundamental and a dynamic competitive advantage Describe the determinants of competitive advantage Understand the relationship between strategy formulation and implementation Understand what a strategy is and identify the difference between business-level and corporate-level strategy UNDER ARMOUR AT A GLANCE 1996 2006 Revenues $17,000 $430,000,000 Net Income 0 57,300,000 Equity Value 0 1,800,000,000 Brands and Trademarks Under Armour, HeatGear, ColdGear, AllSeasonGear, LooseGear, Click Clack Kevin Plank’s Vision To become the world’s #1 performance athletic brand TWO RETAILERS AT A GLANCE Sears Wal-Mart Year founded 1891 1962 Stores 1980 Stores 2004 864 2026 600 5289 Revenues 1980 Revenues 2004 $25,194 million $36,100 million $1,643 million $285,222 million Net profits 1980 Net profits 2004 606M ( return on sales) 507M ( . | Chapter 1 Introducing Strategic Management OBJECTIVES 1 2 3 4 5 Understand why we study strategic management Recognize the difference between a fundamental and a dynamic competitive advantage Describe the determinants of competitive advantage Understand the relationship between strategy formulation and implementation Understand what a strategy is and identify the difference between business-level and corporate-level strategy UNDER ARMOUR AT A GLANCE 1996 2006 Revenues $17,000 $430,000,000 Net Income 0 57,300,000 Equity Value 0 1,800,000,000 Brands and Trademarks Under Armour, HeatGear, ColdGear, AllSeasonGear, LooseGear, Click Clack Kevin Plank’s Vision To become the world’s #1 performance athletic brand TWO RETAILERS AT A GLANCE Sears Wal-Mart Year founded 1891 1962 Stores 1980 Stores 2004 864 2026 600 5289 Revenues 1980 Revenues 2004 $25,194 million $36,100 million $1,643 million $285,222 million Net profits 1980 Net profits 2004 606M ( return on sales) 507M ( return on sales) $55 M( return on sales) $10,267 M ( return on sales) Market capitalization 1980 Market capitalization 2004 USD billion USD billion USD 1 billion USD billion THREE OVERARCHING THEMES Implementing a good strategy is at least as important as creating one, yet many managers give too little thought to implementation Strategic leadership is responsible for making substantive resource allocation decisions and developing key-stakeholder support of the strategy We need to see a firm’s competitive position, not as a snapshot, but as an ongoing movie Firms and industries are dynamic in nature To succeed, the formulation of a good strategy and its implementa-tion should be inextricably connected Strategic leader- ship is essential if a firm is able to both formulate and imple-ment strategies that create value STRATEGY General Lower officer (., supply logistics infantry, heavy armored vehicles) Strategos: “the general’s view” Holistic “big .