Advanced Strategic Management 2023/2024

Managers make decisions within the constraints of time, resources, and knowledge.

It's impossible to gather every piece of information needed for strategic planning.

Developing a plan for an organization's future, considering multiple factors.

Important groups (banks, analysts, investors, employees) expect a certain standard in an approach.

Strategic planning involves individual and collective assumptions about how things are done.

Nobel Prize winner who challenged traditional rational decision-making models for strategic planning.

Management theorist who challenged traditional rational decision-making models for strategic planning.

A traditional strategic planning model that assumes perfect information and analysis to arrive at the best option.

Shared understanding and perceptions of situations and issues within an organization, shaped by culture.

The accepted behaviors, practices, and assumptions within an organization; how things are 'typically done' in a work environment.

Individual managerial perspectives and knowledge shaped by prior experiences, influencing strategic thinking and decision making.

When an organization’s strategy gradually deviates from external realities and becomes inward-focused, losing touch with environmental conditions.

Organizational and national cultures shape managerial assumptions, leading to similar or diverging strategic approaches.

The perspective that individual experiences and organizational culture strongly influence how strategies are developed and perceived.

People with similar experiences tend to perceive situations and issues similarly within an organization.

Implementing strategic changes within an organization can be challenging due to entrenched experiences, beliefs, and cultural norms existing within an organization.

Viewing strategy development as a way for managers to use language, persuasion, and influence to achieve their goals.

When managers use strategic language to appear rational and justify their decisions.

Appearing rational is crucial in making strategy. Persuasive arguments create the illusion of logic.

Strategic language is often used to legitimize strategies and gain compliance.

Strategy is often associated with charismatic leaders and successful firms.

The way managers talk about strategy shapes their image and influence.

Managers use strategic language to gain recognition, power, and acceptance.

Managers may use strategic language to benefit themselves, consciously or unconsciously.

Strategic management involves creating a plan for an organization's future, but its effectiveness varies widely; some companies may be dedicated to strategic management yet still make poor decisions.

While strategic planning offers many benefits, it's tough to quantify its impact in concrete terms. Research shows that while companies may improve, many still have room for improvement.

Many companies struggle to achieve the full benefits of strategic planning. This suggests that planning is often not practiced as effectively as it could be.

This study examined what companies did and didn't do with strategic planning. The findings provided insights into the areas where planning could be more effective.

Companies worldwide engage in some form of strategic management; however, the methods and implementation vary greatly.

Companies decide to change to a system of corporate planning due to major changes at the board level, or a perceived need to address a specific change they face or anticipate.

Complex, high-capital, and technologically advanced companies tend to benefit most from corporate planning. They often recognize the need for planning before other types of companies.

The term 'strategy' comes from the Greek word 'strategia', meaning 'generalship'. It emphasizes the overarching plan for resource deployment to achieve a desired outcome.

The Art of War, written by Sun Tzu around 500 BC, is considered the first treatise on strategy. It influenced the development of strategic thinking beyond military applications.

Strategy is the overall plan for achieving a desired outcome, like winning a war. Tactics are specific actions used to achieve a desired outcome, like winning a battle.

Developing a structured plan for managing finances, including forecasting external events and reviewing performance against planned goals.

Developing plans to address unexpected events that could disrupt the business. This is a crucial aspect of managing risk.

Developing strategies to spread risks across different areas of business or markets. This helps reduce reliance on any single product or market.

Henry Mintzberg argues that the idea of strategy being solely a top-down, rational process is flawed and doesn't reflect real-world strategy development.

Strategies that emerge organically through actions, experiences, and adaptations within a company.

Honda's US motorcycle market success was not based on a strict plan, but on a series of experiments and adaptations.

Strategy is both a mental process (what managers think) and a set of actions (what the company does).

Formalized strategic planning processes, including meetings, workshops, and analysis, that are driven by higher management.

Strategic decisions made throughout the organization, especially by middle managers, who adapt to changing circumstances.

This model supports the idea that formal top-down planning is often preceded by a more informal, emergent strategy process.

Strategy making is shaped by the collective experience of the organization, especially in the form of assumptions and habits.

A structured approach to developing a strategy through planning and analysis. It encourages a systematic and logical approach, but can limit improvisation and overlook unpredictable factors.

A view that emphasizes the emergence of new ideas and initiatives within and around an organization. It values diversity and encourages experimentation in response to changing environments.

Different perspectives or ways of looking at strategy issues to generate a wider range of insights. They provide frameworks for understanding and developing strategic approaches.

Strategy that evolves organically through actions, experiences, and adaptations within a company. It emphasizes the importance of flexibility and responding to changing circumstances.

Organizations with clear top-down control where higher management makes decisions and lower levels implement them.

The belief that organizations operate logically and make decisions based on clear reasoning and information.

Methods used by top management to measure performance, such as budgets, targets, and performance reviews.

Choices made by organizations based on an analysis of their strengths, weaknesses, opportunities, and threats, considering the environment in which they operate.

The challenge faced by organizations in handling situations with unclear outcomes and many factors.

The authority and credibility of managers to make decisions and control the organization.

Using logic and structured approaches to decision-making, leading to a sense of control and justification for choices.

The needs and demands of various groups that interact with an organization, including customers, employees, investors, and the community.

Important choices that involve significant resources and are difficult to change. They shape the direction of a company or organization.

The strategy that leaders and top management teams plan and envision for the company.

The actual strategy that is implemented and put into practice, may deviate from the intended plan.

Henry Mintzberg argues that strategy is not just a top-down, rational process, but also emerges from the complex interplay of individuals and changing circumstances.

The process of establishing and embedding formal practices like job descriptions, accounting systems, and training within an organization, leading to standardized work routines and a consistent organizational culture.

Innovation and creativity thrive when there is a balance between structure and flexibility. Too much rigidity can stifle new ideas, while too little order makes it difficult to implement them.

Managers who are skilled at using language and persuasion to communicate strategic ideas can gain an advantage, building influence and legitimacy.

Managers often use strategically crafted language to make their decisions appear rational, even if they are driven by other factors.

Companies usually adopt formal corporate planning when they face major changes at the board level or see a need to address specific challenges or opportunities.

Complex, high-capital, and technologically advanced companies tend to benefit the most from corporate planning.

The term strategy comes from the Greek word 'strategia', meaning 'generalship', highlighting the idea of an overarching plan for resource deployment.

Sun Tzu's 'The Art of War', written around 500 BC, is considered the first treatise on strategy, influencing the development of strategic thinking beyond militaristic applications.

Henry Mintzberg argues that the idea of strategy being solely a top-down, rational process is flawed and doesn't reflect real-world strategy development.