Lesson Summary

Important Definitions
Strategic Management Process
The full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
Strategic Competitiveness
Achieved when a firm successfully formulates and implements a value-creating strategy.
Risk
An investor's uncertainty about the economic gains or losses that will result from a particular investment.
Above-Average Returns
Occurs when a firm develops a strategy that competitors are not simultaneously implementing.
Provides benefits which current and potential competitors are unable to duplicate.

Average Returns

Returns that are equal to those an Investor expects to earn from other investments with a similar amount of risk.
Strategic Flexibility
A set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment. It Involves coping with uncertainty and the accompanying risks.

Strategic Flexibility
A set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment. It Involves coping with uncertainty and the accompanying risks.

STRATEGIC MANAGEMENT - DECISION MAKING PROCESS

DETERMINATION OF MISSION OR PURPOSE
ENVIRONMENTAL - ASSESSMENT (THREATS and OPPORTUNITIES)
ORGANISATIONAL ANALYSIS " (STRENGTHS، WEAKNESSES)
SPECIFICATION OF OBJECTIVES
FORMULATION OF STRATEGY OR STRATEGIC PLAN (TO ACHIEVE OBJECTIVES AND GOALS)
IMPLEMENTATION OR EXECUTION OF STRATEGIC PLAN
MONITORING, REVIEWING AND EVALUATION

LEARNING ORGANIZATION – FOUR MAIN ACTIVITIES
- Solving Problems Systematically
- Experimenting with New Approaches
- Learning from their own past experiences anti past history as well as from the experiences of others
- Transferring knowledge quickly and efficiently