Business Policy

Essay by PaperNerd ContributorUniversity, Master's November 2001

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BPS 451 Learning Unit 1 The Strategic Management Imperative Summary/Objectives The purpose of this learning unit is threefold. First, you start with an overview of the context of strategic management; understanding that the singular obligation of a business organization is to create economic value, and this can be achieved only if the organization is able to develop a sustainable competitive advantage. Next, you will understand the concept of strategy and examine the three distinct yet complementary approaches to strategic management. Finally, you will learn about strategic intent and its building blocks. You should leave this learning unit with an understanding of the following: · An organization's responsibility to satisfy the needs of multiple stakeholders.

· Role of Economic value added in strategic management.

· Attaining a sustainable competitive advantage as the central focus of strategic management.

· The relationship between intended, emergent and realized strategies.

· The three perspectives on strategic management: rational planning, incrementalism, and organizational learning.

· The building blocks of the strategic management process, viz. Vision, mission, goals, objectives, and plans.

1. The Context of Strategic Management · Let us start with a fundamental question: What is the purpose of a business organization? · In this course we will firmly adhere to the view that the strategic purpose of a business organization is to create value that meets the needs of its stakeholders.

A. "Who are the Stakeholders of a Business Organization"? A business organization's stakeholders are: · Individuals and/or groups, · Both inside and outside of the company, · That have some interest/claim in the company, and · Who are affected by the actions of the company · These stakeholders are in an exchange relationship with the company: a) they supply the company with important resources (contribution) and, b) in turn, they expect their interests to...