Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment (Promotional Management)

335 Pages·2003·1.76 MB·English

by  Abbass F. Alkhafaji

Abbass F. Alkhafaji, PhD
Strategic Management
Formulation, Implementation,
and Control in a Dynamic
Environment
Pre-publication
REVIEWS,
COMMENTARIES, “Strategic Management succeeds
EVALUATIONS . . . wheresomanyothertextsfail.It
isscholarlyyetsuccinct,freefromthe
esotericlanguageandobfuscationoften
associatedwithtextbooks.Theauthor
“Thisbookwillbeveryhelpfulto hasdoneanexcellentjobofincorporat-
those who teach strategic man- ingcontemporaryissues,specificallyin-
agement.Itwillbeanimportanttool, ternational strategy. The use of real-
withitsup-to-datetextandnewcases. worldexampleswillgreatlyassiststu-
Itispreparedinastraightforwardman- dentsandinstructorsalikeinapplying
neryetiscomprehensiveinnature.An the content to modern business prac-
extremelystrongpointisitscoverage tices.”
of global strategic matters.”
Dr. David Whitlock
Gene Murkison, PhD
Dean, College of Business
Professor of Management,
and Computer Science,
Georgia Southern University, Southwest Baptist University,
College of Business Administration Bolivar, MO
NOTES FOR PROFESSIONAL LIBRARIANS
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This is an original book title published by The Haworth Press, Inc.
Unlessotherwisenotedinspecificchapterswithattribution,materials
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mat or language.
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Strategic Management
Formulation, Implementation,
and Control in a Dynamic
Environment
THE HAWORTH PRESS
Promotional Management
Richard Alan Nelson
Editor
Strategic Management: Formulation, Implementation, and Control
in a Dynamic Environmentby Abbass F. Alkhafaji
Strategic Management
Formulation, Implementation,
and Control in a Dynamic
Environment
Abbass F. Alkhafaji, PhD
The Haworth Press®
New York • London • Oxford
©2003byTheHaworthPress,Inc.Allrightsreserved.Nopartofthisworkmaybereproducedor
utilizedinanyformorbyanymeans,electronicormechanical,includingphotocopying,microfilm,
andrecording,orbyanyinformationstorageandretrievalsystem,withoutpermissioninwriting
from the publisher. Printed in the United States of America.
The Haworth Press, Inc., 10 Alice Street, Binghamton, NY 13904-1580.
Cover design by Jennifer M. Gaska.
Library of Congress Cataloging-in-Publication Data
Strategic management : formulation, implementation, and control in a dynamic environment /
Abbass F. Alkhafaji.
p. cm.
Includes bibliographical references and index.
ISBN 0-7890-1809-8 (hard: alk. paper)—ISBN 0-7890-1810-1 (soft : alk. paper)
1. Strategic planning. I. Alkhafaji, Abbass F.
HD30.28 .S7299 2003
658.4'012—dc21
2002068852
CONTENTS
Preface ix
Acknowledgments xv
SECTION I: STRATEGIC MANAGEMENT
FRAMEWORK 1
Chapter 1. Introduction to Strategic Management 3
Why Is It Important to Study Strategic Management? 3
History of Strategic Management and Business Policy 4
Purpose of Business Policy Course 5
Business Policy 8
Strategic Planning 11
Strategic Management 18
Moral and Ethical Duties 25
Corporate Governance and Strategy 26
Review Questions 28
Chapter 2. Strategy Formulation 31
Introduction 31
Who Are the Strategists in Any Organization? 34
Environmental Scanning 36
Strategy Formulation 40
Strategy Implementation 54
Evaluation and Control 55
Decision Making 55
Review Questions 56
Chapter 3. Assessing the Environment 59
Introduction 59
Dynamic Environments 61
The Internal Environment 62
The External Environment 68
Environmental Scanning 80
Review Questions 87
Appendix: The Use of Financial Ratio Analyses 87
Chapter 4. Corporate Strategy 97
Introduction 97
Corporate Strategic Alternatives 98
Analysis of Corporate Strategies 102
Strategy in Multiple-SBU Firms 110
Evaluating Corporate Strategy: Beyond the Business
Portfolio Matrix 116
Review Questions 120
Chapter 5. Business and Functional Strategies 123
Introduction 123
Business Strategy Alternatives 123
Formulating Business Strategy 124
Competitive Strategies and the Health Care Industry 134
Functional Strategic Alternatives 135
Strategy Types 141
Conclusion 142
Review Questions 143
Chapter 6. Strategic Management in the International
Environment 145
Introduction 145
Trends Toward Internationalization 146
Advantages of Internationalization 147
International Strategic Management 151
Entering a Foreign Market 163
Multinational Challenges 172
How to Compete Globally 175
U.S. Competitiveness 175
Tomorrow’s Organizations 177
Review Questions 177
Chapter 7. Corporate Structure and Implementation 181
Introduction 181
Strategy Implementation 181
The General Manager’s Role in the Implementation Process 189
Issues in Strategy Formulation and Implementation 191
Analyzing Strategic Change 195
Building a Capable Organization 199
Allocating Resources to Match Strategic Objectives 201
Establishing Organization-Wide Commitment
to the Strategic Plan 203
Conclusion 205
Review Questions 206
Chapter 8. Corporate Culture, the General Manager,
and Implementation 207
Introduction 207
Installing Internal Administrative Support Systems 209
Exerting Strategic Leadership 213
Fulfilling the Leadership Role 215
Summary 216
Review Questions 217
Chapter 9. The Control Function 219
Introduction 219
Levels of Strategy and Control 221
Organizational Control 222
Financial Measurement Methods 224
Reporting Systems 228
Information Systems 230
Vehicles of Control 231
International Control 238
Summary 240
Review Questions 240
Chapter 10. Strategic Management in Profit
and Not-for-Profit Organizations 243
Introduction 243
Evolution of Not-for-Profit Organizations 243
What Is a Not-for-Profit Organization? 244
Mission Statement 247
Strategic Objectives 248
Crafting a Strategy 251
Strategy for Multi-Primary-Mission Organizations 253
Management Styles 255
Strategic Decision Making in NFP Organizations 256
Evaluation and Control in NFP Organizations 256
Implementation in the NFP Sector 259
Role of the Board of Directors in For-Profit and NFP
Organizations 260