10 Questions
What is the primary focus of strategic decisions made by senior managers?
Long-term direction of an organization
What is the main objective of strategic management according to Fred and Forest (2015)?
To enable an organization to achieve its objectives
What is the outcome of the strategy formulation process?
Strategic choices for the future
What is the primary role of senior managers in an organization?
Making strategic decisions
What is the first stage of the strategy formulation process?
Segmentation
What is the primary focus of corporate-level strategy?
Managing the company's overall purpose, scope, and industries
What is the main goal of business-level strategy?
Determining how to compete successfully in particular markets
What is the primary focus of functional (operational) strategy?
Delivering corporate and business-level strategies effectively
What is the stage that focuses on choosing the strategy to pursue among a range of alternatives?
Positioning
What is the risk of not aligning strategic decisions with the internal and external environment?
Strategic drift
Study Notes
Managerial Roles
- Henry Mintzberg identified 4 managerial roles: Entrepreneur, Disturbance handler, Resource allocator, and Negotiator.
Strategic Management
- Strategic decisions are characterized by: infrequent recurrence, high risk, organization-wide impact, and long-term future.
- Focus is on strategic decisions made by senior managers.
Strategic Decision-Making
- Concerned with: long-term direction, scope of activities, gaining competitive advantage, addressing changes in the business environment, building resources and competences, and stakeholder values and expectations.
Definition of Strategy
- Direction and scope of an organization over the long-term, achieving advantage in a changing environment through resource configuration, fulfilling stakeholder expectations (Johnson et al., 2008).
Definition of Strategic Management
- Formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives (Fred & Forest, 2015).
- Understanding the strategic position, making strategic choices, and managing strategy in action (Johnson et al., 2008).
Strategy Formulation Process
- Three main stages: segmentation (defining the company's focus), targeting (strategic decision-making), and positioning (choosing a strategy).
- Prior to formulation, levels of strategy in a company are distinguished:
- Corporate-level strategy: overall purpose, scope, and management of an organization.
- Business-level strategy: competing successfully in particular markets.
- Functional (operational) strategy: delivering corporate and business-level strategies in terms of resources, processes, and people.
Strategic Segmentation
- Defining and dividing the company's activities into business units is a crucial step in strategic management.
This quiz covers the decisional roles of managers, including Entrepreneur, Disturbance handler, Resource allocator, and Negotiator. It also explores the characteristics of strategic decisions and their importance in management.
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