Chapter 1 - Strategic management and strategic competitiveness. Studying this chapter should provide you with the strategic management knowledge needed to: Define strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process; describe the 21st-century competitive landscape and explain how globalization and technological changes shape it; use the industrial organization (I/O) model to explain how firms can earn above-average returns;. | Chapter 1 Strategic Management and Strategic Competitiveness Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing 1 Sustained Competitive Advantage Above-Average Returns Returns in excess of what an investor expects to earn from other investments with similar risk Occurs when a firm develops a strategy that competitors are not simultaneously implementing Provides benefits which current and potential competitors are unable to duplicate Strategic Competitiveness Achieved when a firm successfully formulates and implements a value-creating strategy 4 which are required for firms to achieve: Above-Average Returns Strategic Competitiveness Sustained Competitive Advantage The Strategic Management Process Involves the full set of: Actions Commitments Decisions 9 The Strategic Management Process Chapter 3 Internal Environment Chapter 2 External Environment Strategic Intent Strategic Mission Strategy Formulation Strategy Implementation Chapter 4 . | Chapter 1 Strategic Management and Strategic Competitiveness Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing 1 Sustained Competitive Advantage Above-Average Returns Returns in excess of what an investor expects to earn from other investments with similar risk Occurs when a firm develops a strategy that competitors are not simultaneously implementing Provides benefits which current and potential competitors are unable to duplicate Strategic Competitiveness Achieved when a firm successfully formulates and implements a value-creating strategy 4 which are required for firms to achieve: Above-Average Returns Strategic Competitiveness Sustained Competitive Advantage The Strategic Management Process Involves the full set of: Actions Commitments Decisions 9 The Strategic Management Process Chapter 3 Internal Environment Chapter 2 External Environment Strategic Intent Strategic Mission Strategy Formulation Strategy Implementation Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 6 Corporate-Level Strategy Chapter 8 International Strategy Chapter 9 Cooperative Strategies Chapter 7 Acquisitions & Restructuring Chapter 10 Corporate Governance Chapter 11 Structure & Control Chapter 12 Strategic Leadership Chapter 13 Entrepreneurship & Innovation Strategic Inputs Feedback Strategic Outcomes Strategic Actions Strategic Competitiveness Above Average Returns 10 Chapter One: Key Themes Industrial Organization Model Resource-Based Model Challenge of Strategic Management Changing Competitive Landscape Two Models of Superior Profitability Key Stakeholder Groups 20 Competitive success is care is taken to preserve competitive position Only 16 of the 100 largest . companies at the start of the 20th century are still identifiable today! In a recent year, 44,367 businesses filed for bankruptcy and many more . businesses failed Challenge of Strategic Management 22 Best Stocks of the Decade Challenge .
