Characteristics of Strategic Thinking

A strategic thinker is focused on what they want to achieve. They have a clear and defined goal in mind.

A strategic thinker takes into account all relevant factors when making decisions. They consider all aspects of the situation, both internal and external.

A strategic thinker seizes opportunities to improve their situation. They are proactive and take advantage of new possibilities.

A strategic thinker considers the long-term consequences of their actions. They plan for the future and make decisions that will benefit them in the long run.

A strategic thinker builds on past experiences and current knowledge to inform their decisions. They learn from their mistakes and adapt to changing conditions.

A strategic thinker uses hypotheses to test their assumptions. They are willing to experiment and learn from their results.

The process by which a company analyzes its current state, defines its goals, and develops a plan to reach those goals.

The Strategic Management Process starts with a thorough understanding of the company's internal resources and the external environment, forming a strategic direction, and formulating specific plans to achieve this direction. This involves implementation, managing resources, and establishing competitive advantages.

External groups, individuals, or forces that impact an organization beyond its internal boundaries.

The entities that interact with a company's operations. They include customers, suppliers, competitors, and financial intermediaries.

The wider context encompassing sociocultural, economic, technological, political, and legal factors that influence an organization's environment.

The process of gathering information about the broad, operating, and internal environments of a company.

The information gathered from strategic surveillance, which is used to make better business decisions.

The impact of societal trends, beliefs, values, attitudes, and lifestyles on a company's operations.

The economic conditions, including growth rates, inflation, and interest rates, that affect a company's performance.

A type of environment, where local communities, unions, activist groups, and government agencies are included

A strategy that emerges organically in response to unexpected opportunities or problems. These are not planned or anticipated but arise from interactions with the environment.

A strategy that is carefully planned and executed, often based on a detailed analysis of the company's internal and external environments.

The highest level of strategy, focusing on the overall direction and scope of the company. It involves decisions on what businesses to pursue, how to allocate resources, and the overall mission of the organization.

The strategy specific to each business unit within the company. It focuses on how to compete in the specific market chosen, taking into account the company's resources and competitive advantages.

The strategy focused on specific functional areas within the business. It involves coordinating activities to support the overall business strategy and includes functions such as marketing, finance, operations, and human resources.

The strategic management process recognizes that actual strategy can be influenced by both planned (deliberate) and unplanned (emergent) actions. Realized strategy reflects the combined influence of intended and emergent strategies.

Strategic management involves analyzing the current situation, defining goals, developing a plan to achieve those goals, and then implementing, resources managing, and establishing competitive advantages.

Functional-level strategies are detailed plans for specific departments like marketing, operations, and finance. They focus on implementing business-level strategies and gaining a competitive advantage.

Corporate-level strategy asks big questions about what businesses a company should operate in, how to create value within those businesses, and the resources needed to maintain or build a competitive edge.

Business-level strategy aims to create a competitive edge within each product market area a company operates in. They explore how to be a cost leader, a differentiator, or focus on specific market segments.

Functional-level strategies are about acquiring, developing, and managing a company's resources effectively.

Functional-level strategies focus on enhancing operational efficiency in areas like production, marketing, and administration. They also include continuous innovation and ensuring high customer satisfaction.