I. BASIC CONCEPTS1. Some basic definitions: Strategic management: Set of managerial decisions and actions that determines the long-run performance of a firm Business policy: General management orientation that looks inward for properly integrating the firms functional activities

2. 4-phases of strategic management: Basic financial planning

Forecast-based planning

Externally-oriented planning (strategic)

Strategic management

3. Results: Clearer sense of strategic vision for the firm Sharper focus on what is strategically important Improved understanding of a rapidly changing environment

4. Challenges: Globalization Electronic commerce

5. Organizational adaptations: Theory of population ecology

Institution theory

Strategic choice perspective

Organizational learning theory

6. Initiation of strategy:

7. Mintzbergs modes: Entrepreneurial mode

Adaptive mode

Planning mode

Logical incrementalism