Archives
Book Review
Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment
Abbass Alkhafahi
ISBN: 0-789018-10-1 2003 Hathworth Press
Siu-Loon Hoe
Graduate School of Management, University of Western Australia, WA
The study of strategic management is typically designed as a capstone unit in business courses. The intent is for the unit to integrate other business subjects such as finance, marketing, and human resource management, and present a holistic overview of running an organisation. Many scholars have approached the teaching of strategic management advocating the application of models and frameworks. Adopting a similar approach, Alkhafahi has organized his thoughts around a generic strategic management framework when writing this textbook. This framework consists of four connected and dynamic elements: environmental analysis, strategy formulation, strategy implementation, and evaluation and control.
This textbook is divided into two main sections. Section One consists of ten chapters and provides an in-depth analysis of strategic management concepts and models. It covers formulation, implementation, and control of strategies for various types of domestic and global organisations. Section Two offers various tips on writing cases and preparing for case analysis. It also makes many references to major corporations as case studies.
Chapter One presents a broad overview of the field of strategic management such as its importance, definition, and history. Chapter Two elaborates on the key strategic management processes and explores important contemporary issues such as total quality management and reengineering in relation to strategic management. The various types of strategy, organisation hierarchy, and theme of the strategy are also addressed in this chapter. Analytical tools connected to assessing the environment are highlighted in Chapter Three. Both internal and external environments are covered. The book mentions that the internal environment consists of functional areas such as production, and research and development, while the external environment is dominated by forces which shape a particular industry. Furthermore, other macro-environmental factors such as economic, technological, political, and social forces also affect the organization's external environment. The next two chapters focus on the formulation of corporate, business, and functional strategies. Several types of corporate strategic alternatives are analyzed. These options include specialization, internal growth, diversification, and strategic alliance. Some popular management concepts such as Boston Consulting Group matrix, General Electric matrix, McKinsey's 'Seven S' model, and Michael Porter's generic strategies are briefly described.
A distinguishing feature of this textbook is its emphasis on special topics related to strategic management. In Chapter Six, managerial strategies as applied to international and global organisations are covered. The advantages of internationalization and ways to enter a foreign market are mentioned in this chapter. Challenges such as conflicts between multi-national corporations and the local environment, and coordination between headquarters and overseas subsidiaries are also discussed. Chapter Seven covers corporate structure and implementation. Besides presenting the advantages and disadvantages of the traditional functional, product, geographical, and matrix structures, the author also analyzes the various levels of strategic change, and how to match structure to strategy. Corporate culture, the general manager, and implementation are the subject of discussion in Chapter Eight. Alkhafahi argues that the general manager must be able to instill a strategy-supportive corporate culture. The other tasks include installing internal administrative support systems and exerting strategic leadership. Chapter Nine emphasizes the need to develop an effective control system. Such a control mechanism should include financial measurement methods, reporting systems, and information systems. The final chapter on strategic management for not-for-profit organisations is another valuable chapter. The evolution and definition of not-for-profit organisations are discussed extensively. In addition, the chapter also covers the management of strategic objectives, strategic decision making, and the role the board of directors in not-for-profit organisations.
Section Two showcases print and electronic sources of well-known companies to help illustrate various strategic management concepts and principles. In total, there are 21 corporate case summaries with reference sources. The list of corporations includes Harley-Davidson, Microsoft, Nike, and PepsiCo.
A unique aspect of the textbook is the author's ability to skillfully weave managerial applications, international dimensions, and contemporary management issues in-between the generic strategic management framework. This compact textbook gives a comprehensive overview of strategic management in an easy-to-read format. It is ideal as a quick reference guide. Consequently, the textbook undergraduate students who would benefit from a concise collection of strategic management concepts with real-world cases.
eContent Home
