Solution Manual For Strategic Management Awareness and Change, 10th Edition John Thompson Jonathan M. Scott Frank Martin Chapter (1-17)
Chapter 1: What is strategy and who is involved? 1.1 Strategy Explained Strategies are the means to an organization‘s objectives. Whilst an organization will have an existing strategy, it may not be explicit. Whilst established objectives may be used to determine strategies to achieve them, what we know as intended strategies, the actual strategies being pursued and the level of success, determines the level of overall achievement. Generally speaking, both strategies and objectives evolve and emerge as problems are identified and resolved, and opportunities are identified and exploited. Research suggests that existing strategies frequently evolve incrementally with decisions and changes in various parts of the organization rather than changes being the result of a formal planning system, i.e., strategic change in reality is often a gradual process. There is likely to be, however, an overall strategic direction dictated by top management and this will aim to create and sustain a ‗match‘ or ‗fit‘ between the organization and its environment. Environmental crises or changes ‗at the top‘ may well cause a change in the overall direction. The direction is often reflected in corporate mission and vision statements. Formal planning or corporate planning does have a useful role in helping carry out strategic analyses, and in assessing alternative courses of action, but, quite simply, there is more to strategic management than planning. The courses followed by an organization are heavily influenced by the values held by people within the organization. Logically, these values ‗come from the top‘. Strategic thinking relates to an organization‘s ability to gather, harness and utilize relevant information from inside the organization and from the (changing) external environment. The desired outcome is strong competitive strategies. The external environment can usefully be seen as ‗layered‘. Suppliers, customers and competitors comprise the inner layer; the PEST (political, economic, social and technological) factors are the outer layer – because they affect the whole industry. Strategic thinking demands an ability to learn from the past, to understand the present and to think ahead. Effective thinking can be used to generate synergy, where the total achievements of the whole organization exceed what would be achieved if the various parts were working independently. Synergy is the term used for the added value or additional benefits which, ideally, accrue from the linkage or fusion of two businesses, or from increased co‐operation between either different parts of the same organization or between a company and its suppliers, distributors and customers. Internal co‐operation may represent linkages between either different divisions or different functions. Synergy is the term used for the added value or additional benefits which, ideally, accrue from the linkage or fusion of two businesses, or from increased co‐operation between either different parts of the same organization or between a company and its suppliers, distributors and customers. Internal cooperation may represent linkages between either different divisions or different functions. Over time, strong competitors create and seek to hold positions of power in markets and industries.
For use with Strategic Management: Awareness and Change 10e, Thompson, Scott, Martin, 9781473786530 © Cengage EMEA 2023