Strategic Management

BUS 409

HANDOUT # 1
Strategic Management and
Strategic Competitiveness

https://lms.lc.ac.ae/ultra/stream
 Objectives of this course

CLO1: Define different strategic

management concepts and describe
the strategic management process

2
 Learning objectives

 1.1 Define strategic competitiveness, strategy, competitive advantage, above-average returns, and
the strategic management process.
 1.2 Describe the competitive landscape and explain how globalization, technological changes, and
expectations of socially responsible behavior shape it.
 1.3 Use the industrial organization (I/O) model to explain how firms can earn above-average
returns.
 1.4 Use the resource-based model to explain how firms can earn above-average returns.
 1.5 Use the stakeholder model to explain how firms can earn above-average returns.
 1.6 Describe vision, mission, and values, and explain why they are important.
 1.7 Describe strategic leaders and what they do.
 1.8 Explain the strategic management process.
3
1-1An Overview of Strategy and
Strategic Competitiveness
 An Overview of Strategy and Strategic
Competitiveness (1 of 5)
• Firms achieve strategic competitiveness by formulating and
implementing a value-creating strategy.
− A strategy is an integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a
competitive advantage.
 When choosing a strategy, firms make choices among competing
alternatives as the pathway for deciding how they will pursue strategic
competitiveness.
 The chosen strategy indicates what the firm will and will not do.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 An Overview of Strategy and Strategic
Competitiveness (2 of 5)
• A firm has a competitive advantage when, by implementing a
chosen strategy, it creates superior value for customers and when
competitors are not able to imitate the value the firm’s products
create or find it too expensive to attempt imitation.
− Almost no competitive advantage is sustainable permanently.
− How long a competitive advantage will last depends on how quickly
competitors can acquire the skills needed to duplicate the benefits of
a firm’s value-creating strategy.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 An Overview of Strategy and Strategic
Competitiveness (3 of 5)
• Above-average returns are returns in excess of what an
investor expects to earn from other investments with a similar
amount of risk.
− Risk is an investor’s uncertainty about the economic gains or
losses that will result from a particular investment.
 The most successful companies learn how to manage risk
effectively.
 Doing so reduces investors’ uncertainty about the outcomes of their
investment.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 An Overview of Strategy and Strategic
Competitiveness (4 of 5)
• Firms without a competitive advantage or those that do not
compete in an attractive industry earn, at best, average returns.
− Average returns are returns equal to those an investor expects to
earn from other investments possessing a similar amount of risk.
− Over time, an inability to earn at least average returns results first in
decline and, eventually, failure.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 An Overview of Strategy and Strategic
Competitiveness (5 of 5)
• The strategic management process is the full set of
commitments, decisions, and actions firms take to achieve
strategic competitiveness and earn above-average returns.
− The process involves analysis, strategy, and performance (the A-S-P
model).
− A firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve
a desired level of performance.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Figure 1.1
The Strategic
Management
Process

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Knowledge Check 1-1

An organization can be confident that its strategy yields a competitive advantage

after:
a. competitors decide how they will pursue strategic competitiveness.
b. competitors duplicate the firm’s value-creating strategy.
c. competitors’ efforts to duplicate it have ceased or failed.
d. competitors begin to imitate their product and strategies.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1-2 The Competitive Landscape

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Competitive Landscape (1 of 2)

• The fundamental nature of • Managers must adopt a new mind-set

competition in many of the world’s that values:
industries is changing. − Flexibility
− Firms must understand the strategic
− Speed
implications associated with
digitalization and integrate digitalization − Innovation
effectively into their strategies. − Integration
− Conventional sources of competitive
− The challenges flowing from constantly
advantage such as large advertising
changing conditions
budgets and economies of scale are not
as effective as they once were in helping
firms earn above-average returns.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Competitive Landscape (2 of 2)

• Hypercompetition is a condition • It is a condition of rapidly escalating

where competitors engage in intense competition based on:
rivalry, markets change quickly and − Price-quality positioning
often, and entry barriers are low.
− Competition to create new know-how and
− Hypercompetition makes it difficult for establish first-mover advantage
firms to maintain a competitive advantage.
− Competition to protect or invade
• Two primary drivers of established product and/or geographic
hypercompetition: markets

− The emergence of a global economy

− Rapid technological change

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Global Economy (1 of 3)

• A global economy is one in which goods, services, people, skills, and ideas
move freely across geographic borders.
• The global economy significantly expands and complicates a firm’s competitive
environment.
• An understanding of the size of the economies in which a firm participates is
important when studying the global environment.
− Such an analysis also must consider entry barriers to various economies in the form of
tariffs.
− A tariff is one of the evidences of what is called protectionism, which involves actions
taken by a government to protect its economy from adverse influences due to foreign trade.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Global Economy (2 of 3)
• When evaluating the attractiveness of a country for expansion, it is important to
consider economic growth, since with growth comes increased demand for
products and services.
• Globalization
− Globalization is the increasing economic interdependence among countries and their
organizations as reflected in the flow of products, financial capital, and knowledge across
country borders.
− Globalization is a product of a large number of firms competing against one another in an
increasing number of global economies.
− A global supply chain is a network of firms that spans multiple countries with the purpose
of supplying goods and services.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Technology and Technological Changes
(1 of 4)
• Technology affects all aspects of how companies operate.
• Information technologies facilitate the integration of enterprises into the global
supply chains.
• Technology diffusion is the speed at which new technologies become available
to firms and when firms choose to adopt them.
• Perpetual innovation is a term used to describe how rapidly and consistently
new, information-intensive technologies replace older ones.
• Disruptive technologies are technologies that destroy the value of an existing
technology and create new markets.
− Increasing knowledge intensity
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 Edition. © 2024
th

Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Social Responsibility (1 of 2)
• Today’s competitive environment is also marked by the need to incorporate
social responsibility into a firm’s strategic management, often called corporate
social responsibility, or CSR.
• Society is holding corporations and other businesses accountable for their
actions with regard to a number of societal expectations, including:
− How they treat employees
− Their records with regard to inclusiveness
− The quality and safety of the products they make and services they provide
− Their environmental records
− The absence or existence of legal suits brought by any of their stakeholders
− Their philanthropic activities

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Social Responsibility (2 of 2)
• The basic idea behind sustainability is that a firm should not deplete or destroy
natural elements upon which it depends for survival.
− Sustainability has also been extended into other resource areas beyond the
environment, such as human capital, gender equality, global poverty, and
innovation.
− Often large firms are also held accountable for the actions of the firms with which
they do business.
− Firms that are high in social responsibility are at less risk of legal suits, negative
social media, walkouts, and so forth.
− The majority of large corporations publish sustainability reports which outline their
activities in ESG (environment, society, and governance).
 Greenwashing is exaggerating a firm’s environmental protection activities.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Polling Activity 1-2
Corporate social responsibility is …
a. what makes a company stand out as a good investment over other
companies.
b. a necessary component of any firm’s strategic management if they wish to be
successful in today’s competitive environment.
c. what will drive large corporations to make better choices in the materials they
use and how they source them.
d. the best method to bring about change in production companies around the
world that engage in sweatshop practices.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1-3 The I/O Model of Above-Average
Returns

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The I/O Model of Above-Average Returns
(1 of 3)
• The logic of the I/O model is that the profitability potential of an industry or a
segment of it as well as the actions firms should take to operate profitably are
determined by a set of industry characteristics, including:
− Economies of scale
− Barriers to market entry
− Diversification
− Product differentiation
− The degree of concentration of firms in the industry
− Market frictions
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The I/O Model of Above-Average Returns
(2 of 3)
• Four underlying assumptions of the I/O model:
− The external environment imposes pressures and constraints that determine the
strategies that would result in above-average returns.
− Most firms competing within an industry or within a segment of that industry are
assumed to control similar strategically relevant resources and to pursue similar
strategies in light of those resources.
− Resources are highly mobile, meaning that any resource differences that might
develop between firms will be short-lived.
− Organizational decision makers are rational individuals who are committed to acting
in the firm’s best interests, as shown by their profit-maximizing behaviors.
• The I/O model challenges firms to find the most attractive industry in which to
compete.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The I/O Model of Above-Average Returns
(3 of 3)
• The five forces model of competition is − Firms can earn above-average returns
an analytical tool firms use to find the by producing either:
 Standardized products at costs below
industry that is most attractive.
those of competitors (a cost leadership
• The five forces model suggests that: strategy)
 Differentiated products for which
− An industry’s profitability is a function of customers are willing to pay a price
interactions among: premium (a differentiation strategy)
 Suppliers
• Managers’ strategic actions affect the
 Buyers

firm’s performance as do the
Competitive rivalry among firms currently
in the industry characteristics of the environment in
 Product substitutes which the firm competes.
 Potential entrants to the industry
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Knowledge Check 1-3
The industrial organization (I/O) model assumes that:
a. firms acquire different resources and develop unique capabilities based on
how they combine and use the resources.
b. the external environment imposes pressures and constraints that determine
the strategies that would result in above-average returns.
c. any resource differences that develop between firms will be long term.
d. firms can earn above-average returns by producing standardized products at
costs below those of competitors.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1-4 The Resource-Based Model of
Above-Average Returns

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Resource-Based Model of
Above-Average Returns (1 of 3)
• The resource-based model of above-average returns assumes that each
organization is a collection of unique resources and capabilities.
• The uniqueness of resources and capabilities is the basis of a firm’s strategy
and its ability to earn above-average returns.
• Resources are inputs into a firm’s production process, such as capital
equipment, the skills of individual employees, patents, finances, and talented
managers.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Resource-Based Model of
Above-Average Returns (2 of 3)
• Firms typically classify resources into • Resources have a greater likelihood
three categories: of being a competitive advantage
− Physical capital when integrated to form a capability.

− Human capital − A capability is the capacity for a set

of resources to perform a task or an
− Organizational capital activity in an integrative manner.
− Core competencies are capabilities
that serve as a source of competitive
advantage for a firm over its rivals.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Resource-Based Model of
Above-Average Returns (3 of 3)
• Resources and capabilities have the potential to be the foundation for a
competitive advantage when they are:
− Valuable (allow a firm to take advantage of opportunities or neutralize threats in its
external environment)
− Rare (possessed by few, if any, current and potential competitors)
− Costly to imitate (are difficult for other firms to obtain)
− Non-substitutable (have no structural equivalents)

• It is difficult to achieve and sustain a competitive advantage based on resources

alone.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Knowledge Check 1-4
Which of the following is an assumption of the resource-based model?
a. Resources and capabilities are not highly mobile across firms.
b. A firm's performance across time is due primarily to the industry's structural
characteristics rather than to the firm's unique resources and capabilities.
c. Most firms competing within an industry or within a segment of that industry
are assumed to control similar strategically relevant resources and to pursue
similar strategies in light of those resources.
d. Organizational decision makers are assumed to be rational individuals who
are committed to acting in the firm's best interests, as shown by their profit-
maximizing behaviors.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1-5 The Stakeholder Model of
Above-Average Returns

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Stakeholder Model of
Above-Average Returns (1 of 4)
• Stakeholders are individuals, groups, and organizations that can both influence
and are affected by the objectives, actions, and outcomes of a firm.
• Stakeholders are internal and external constituencies that have a strong interest
in the activities and outcomes of an organization and upon whom the
organization relies on to achieve its own objectives.
− Internal stakeholders include all a firm’s employees, including both non-managerial
and managerial personnel.
− External stakeholders are a diverse group and include the major suppliers of a
firm’s capital as well as product market stakeholders—the firm’s customers,
suppliers, host communities, and any unions representing the workforce.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Stakeholder Model of
Above-Average Returns (2 of 4)
• Primary stakeholders are directly • Secondary stakeholders can both
involved in the value-creating influence and are influenced by what
processes of the firm and include: the firm does, but they do not
− Suppliers contribute directly to the value the
firm creates.
− Employees
• This sort of management is often
− Customers
called managing for stakeholders or
− The communities in which the firm stakeholder-oriented management.
operates
− Financiers such as the firm’s
shareholders and banks
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Stakeholder Model of
Above-Average Returns (3 of 4)
• Managing for stakeholders implies that more attention and resources are
allocated to satisfy the needs of stakeholders than might be necessary simply to
retain their participation in the productive activities of the firm.
• It also means that firms incur greater costs as, for example, they:
− Provide better wages and benefits to their employees
− Give back to the communities in which they operate
− Provide high-quality products or outstanding service to customers at prices that are
perhaps a little lower than they might otherwise charge

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Managing for Stakeholders (1 of 2)
• Not all firms that manage for stakeholders will have above-average returns.
− Stakeholder management is only one important component in the strategic
management process.
− Situations may occur in which a firm would perform better if they simply engage in
what are called arms-length transactions with stakeholders.
 The firm simply responds to market forces in buying and selling products and other
resources.
 Could be more efficient when innovation, loyalty, and higher levels of stakeholder
motivation are not as important.

• This model suggests a firm should treat stakeholders better than competing
firms but not with overzealousness that could lead to “giving away the store.”

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 1-6 Vision, Mission, and Values

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Vision, Mission, and Values

• After analyzing the external environment, the internal organization, and

relationships with stakeholders, the firm has the information required to form its
vision, mission, and values.
• Stakeholders learn a great deal about a firm by studying its vision, mission, and
values.
• A key purpose of these statements is to inform stakeholders of what the firm is,
what it seeks to accomplish, and who it seeks to serve.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Vision

• Vision is a picture of what the firm • An effective vision:

wants to be and, in broad terms, what − stretches and challenges people.
it wants to achieve.
− is developed by the CExdO and other
• A vision statement: top-level managers, employees,
suppliers, and customers.
− articulates the ideal description of an
organization and gives shapes to its − is consistent with the decisions and
intended future. actions of those involved with
developing it.
− tends to be relatively short and
concise.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Mission

• A mission specifies the businesses − deals more directly with product

in which the firm intends to compete markets and customers.
and the customers it intends to serve. − should be developed by the CEO,
top-level managers, and other
• A mission:
organizational members.
− is more concrete than a firm’s vision.
− has a higher probability of being
− should establish a firm’s individuality. effective when employees have a
strong sense of ethics.
− should be inspiring and relevant to all
stakeholders.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Values

• The values of an organization define − can help a firm define its purpose and
what should matter most to managers answer the fundamental question of
and employees when they make and what the firm stands for.
implement strategic decisions. − should help determine the way
stakeholders are treated and their
• Values: priority in important decisions.
− help guide what is rewarded and
reinforced in the organization.
• Core values are sometimes
incorporated into a firm’s mission
− are a practical application of business statement, but many firms put them in
ethics. separate statements to reinforce to
stakeholders what they stand for.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Strategic Leaders (1 of 2)

• Strategic leaders are people located in • In general, CEOs are responsible for
different areas and levels of the firm making certain that their firms use the
using the strategic management process strategic management process properly.
to select actions that help the firm
achieve its vision and fulfill its mission. • Many others help choose a firm’s
strategy and the actions to implement it.
• Successful strategic leaders are:
• The most effective CEOs and top-level
− Decisive managers understand how to delegate
− Committed to nurturing those around strategic responsibilities to people
them throughout the firm.
− Committed to helping the firm create
value for all stakeholder groups
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Strategic Leaders (2 of 2)

• Strategic leaders’ decisions and actions shape a firm’s culture.

− Organizational culture refers to the complex set of ideologies, symbols, and core
values that individuals throughout the firm share and that influence how the firm
conducts business.
− Organizational culture is the social energy that drives—or fails to drive—the
organization.

Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Strategic Management Process (2 of 2)

• A-S-P process:
− The analyses (A) firms use to develop strategies.
− The firm’s analyses provide inputs that are the foundation for choosing one or more
strategies (S) and deciding which one(s) to implement.
− The strategic management process calls for disciplined approaches to serve as the
foundation for developing a competitive advantage.
− The process has a major effect on the performance (P) of the firm.

• Mastery of this strategic management process contributes positively to a firm’s

efforts to achieve strategic competitiveness and, in doing so, to create value for
its stakeholders.
Hitt, Ireland, Hoskisson, Harrison, Strategic Management: Concepts and Cases: Competitiveness and Globalization, 14 th Edition. © 2024
Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Thank you for your attention

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