Lecture 2.pptxEthics, Social Responsibility, and Sustainability

Ethics, Social
Responsibility, and
Sustainability

1. Dr. Muhammad Faisal , Ph.D (HRM), contact : 0333-5377388

2. Strategic Management Textbook Strategic Management: Concepts: Competitiveness and Globalization - 9 th Edition, Michael A. Hitt, R. Duane Ireland, Robert E. Hoskisson. Contemporary Strategic Management Case Studies , 6 th Edition, Robert Grant Reference Books Concepts in Strategic Management and Business Policy , 12 th Edition, Wheelen, Thomas L., Hunger, J. David The Blackwell Handbook of Strategic Management , 1 st Edition. M.A. Hitt, R.E. Freeman and J.S. Harrison

3. Strategic Management

4. Strategic Management The ability of an organization to develop and implement strategies that will achieve sustained competitive advantage . The capacity to select the most appropriate vision, to define realistic intentions, to match resources to opportunities and to prepare and implement strategic plans. Strategic capability of an organization depends on the strategic capabilities of its managers. Managers who display high levels of strategic capability know where they are going and know how they are going to get there. Such managers recognize that, they must be successful now to succeed in the future. It is always necessary to create and sustain a sense of purpose and direction.

5. Strategic Management The strategic capability of a firm depends on its resource capability. The firm is an administrative organization and a collection of productive resources. Penrose (1959) Strategy ‘is a balance between the exploitation of existing resources and the development of new ones’. Wernerfelt (1984) Sustained competitive advantage stems from the acquisition and effective use of bundles of distinctive resources that competitors cannot imitate. Barney (1991) Competitive success does not come simply from making choices in the present; it stems from building up distinctive capabilities over significant periods of time. Boxall (1996) Dynamic capabilities assume that the capacity of a firm to renew, augment and adapt its core competences over time. Teece , Pisano and Shuen (1997)

6. Strategic Management Strategic management is the set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of an organization. Pearce and Robinson (1988) Strategic management is primarily concerned with the following: the full scope of an organization’s activities, including corporate objectives and organizational boundaries; matching the activities of an organization to the environment in which it operates; ensuring that the internal structures, practices and procedures enable the organization to achieve its objectives; matching the activities of an organization to its resource capability, assessing the extent to which sufficient resources can be provided to take advantage of opportunities or to avoid threats in the organization’s environment; acquiring, depriving and reallocating resources; translating the complex and dynamic set of external and internal variables (that an organization faces) into a structured set of clear future objectives that can then be implemented on a day-to-day basis. Burns (1992)

7. Strategic Management

8. Strategic Management Strategic goals define where the organization wants to be. May be specified in terms of actions, quantified in terms of growth, or expressed in general terms as aspirations rather than specifics. Formal expressions of how an organization intends to attain its strategic goals. Strategies of firms are a sets of strategic choices, some of which may stem from planning exercises and setting debates in senior management, and some of which emerge in a stream of action.

9. Strategic Management