ABSTRACT
Chapter 1 described how managers’ mental models influence the decisions they make, which, in turn, become their firms’ realized strategies. The model of strategic management introduced in Chapter 1, and reprinted here as Exhibit 2.1, suggests that managers must make four major types of strategic decisions. They must: Managers' Beliefs, Strategic Decisions, and Their Influence on Performance and Competitive Advantage https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203807620/f89dea2b-827e-4086-938f-a1efd759074c/content/fig2_1_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/>
Define or position their firms in their competitive environments based on their understandings of industry structure and dynamics.
Develop a business strategy based on their understandings about how to compete in their firms’ industries.
Develop a corporate strategy based on their understandings about the appropriate scale and scope for their firms.
Create an organizational structure based on their understandings about how business firms ought to be organized.
