Universitas Islam Indonesia Faculty of Economics

Chapter
1
Overview of Strategic Management
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What Is

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?
OPERATION
AL
EFFECTIVEN STRATEGY
ESS

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The ceation of
unique and ITS ALL ABOUT
BEING DIFFERENT
valuable position, TO WIN THE
involving a COMPETITION
different set of
activities
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Operational
Effectivenes Strategy
s
Perform similar Perform different
activities better than activities from
competitor competitor or similar
activities in different
ways

Results in lower
Allow company to
average cost
charge higher
average price

Delivering greater Delivering greater

efficiency value

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SUSTAINABLE
Operational
Strategy COMPETITIVE
Effectiveness
ADVANTAGE

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What Is
STRATEGIC
MANAGEMENT?
The set of decisions and
actions that result in the
formulation and
implementation of plans
designed to achieved a
companys objective.

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Strategic Choice

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The Strategic Management Process

Objectiv SWOT
Vision Mission e analysis

Competiti
Strategy
Strategic
Implementati
ve
Choice Advantag
on
e

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Dimensions of Strategic Decisions

Require top-
management decisions

Require large amounts

of the firms resources

Affect the firms long-

term prosperity and
future oriented

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Three Kinds of Companies

The Rule
Makers

The Rule
Takers

The Rule
Breakers

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Do They Have a Sustainability
Competitive Advantage?

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Conclusion

Who can conclude deserve points

Raise your hand!!

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