IRE346H1 Chapter Notes - Chapter 1: Strategic Management, Competitive Advantage, Southwest Airlines
15 May 2020
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Strategy is the formation of organizational objectives, competitive scopes, and action plans for gaining advantage. Plan for how the organization intends to achieve its goals. Intended strategy: one that was formulated at the beginning of the period. To be effective, strategic management anticipates future problems, provides an alignment with external contingencies and internal competencies, recognizes multiple stakeholders, and is concerned with measurable performance. Company-wide strategies, focused on overall strategy for the company and all of its business interests. E. g. , decisions to compete internationally or merge with other companies. Usually focused on long-term growth and survival goals and will include major decisions such as the decision to acquire another company. Grouped within corporate strategies are three options. Turnaround: managers try to restore money-losing businesses to healthy profitability or government agencies to viability. E. g. , getting rid of unprofitable products, imposing layoffs. Devistiture: spinning off a business as a financially and managerially independent company or selling it outright.
