Podcast
Questions and Answers
Identifying an organization’s external opportunities and threats is part of the environmental analysis process.
Identifying an organization’s external opportunities and threats is part of the environmental analysis process.
True
Developing a vision and mission is not considered an essential step in strategic management.
Developing a vision and mission is not considered an essential step in strategic management.
False
Establishing long-term objectives is an irrelevant step in selecting strategies.
Establishing long-term objectives is an irrelevant step in selecting strategies.
False
The SW Analysis includes evaluating both internal strengths and weaknesses.
The SW Analysis includes evaluating both internal strengths and weaknesses.
Signup and view all the answers
Choosing particular strategies to pursue relies solely on understanding internal controls.
Choosing particular strategies to pursue relies solely on understanding internal controls.
Signup and view all the answers
The strategic-management process consists of three stages: formulation, implementation, and evaluation.
The strategic-management process consists of three stages: formulation, implementation, and evaluation.
Signup and view all the answers
Firms that do not engage in strategic planning typically experience higher levels of sustainability and performance.
Firms that do not engage in strategic planning typically experience higher levels of sustainability and performance.
Signup and view all the answers
Integrating analysis and intuition is unnecessary in the field of strategic management.
Integrating analysis and intuition is unnecessary in the field of strategic management.
Signup and view all the answers
Engaging in strategic management can enhance a student's employability by providing essential skills.
Engaging in strategic management can enhance a student's employability by providing essential skills.
Signup and view all the answers
The nature of strategic management has no connection with military strategy.
The nature of strategic management has no connection with military strategy.
Signup and view all the answers
Study Notes
Strategic Management Concepts
- Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions.
- These decisions enable organizations to achieve their objectives.
Learning Objectives
- Describe the strategic-management process
- Discuss the three stages of strategy formulation (formulation, implementation, and evaluation)
- Explain the need for integrating analysis and intuition in strategic management
- Define and give examples of key terms in strategic management
- Describe the benefits of engaging in strategic management
- Explain why some firms do not engage in strategic planning
- Describe the pitfalls in doing strategic planning
- Discuss the connection between business and military strategy
- Explain how this course can enhance a student's employability
Defining Strategic Management
- Strategic management is used synonymously with strategic planning.
- Strategic management refers to strategy formulation, implementation, and evaluation.
- Strategic planning refers only to strategy formulation.
- A strategic plan is a company's game plan.
- This plan results from tough managerial choices, and signals commitment to markets, policies, and operations.
The Strategic-Management Model
- Where are we now?
- Where do we want to go?
- How are we going to get there?
Stages of Strategic Management
- Strategy formulation
- Strategy implementation
- Strategy evaluation
Strategy Formulation
- Develop a vision and mission
- Identify organizational external opportunities and threats
- Determine internal strengths and weaknesses
- Establish long-term objectives
- Generate alternative strategies
- Choose strategies to pursue
Strategy Formulation Decisions
- What new businesses to enter
- What businesses to abandon or diversify
- Whether to expand operations or diversify
- Whether to enter international markets
- Whether to merge or form a joint venture
- How to avoid a hostile takeover
Strategy Implementation
- Establishing annual objectives
- Devise policies
- Motivate employees
- Allocate resources
- Execute formulated strategies
- This stage is often called the action stage
Strategy Evaluation
- Determine which strategies are not working well.
- Three fundamental activities: -Reviewing external and internal factors -Measuring current strategies' performance -Taking corrective actions
Key Terms in Strategic Management
-
Competitive Advantage:
- Any activity a firm performs especially well compared to rivals
- Any resource a firm possesses that rivals desire
- Striving to achieve sustained competitive advantage is crucial.
- Strategists: Individuals primarily responsible for the success or failure of an organization.
-
Vision and Mission Statements:
- Vision statement answers the question "What do we want to become?"
- Mission statement answers the question "What is our business?"
-
External Opportunities and Threats:
- Economic, social, cultural, etc. trends that can help or harm an organization
-
Internal Strengths and Weaknesses:
- Controllable activities that are performed well or poorly relative to competitors
- Long-Term Objectives: Specific results that an organization aims to achieve, lasting over a year. Must be challenging, measurable, consistent, reasonable, and clear.
- Strategies: The means by which long-term objectives will be accomplished. These could include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint ventures.
- Annual Objectives: Short-term milestones which enable organizations to reach long-term goals. These should be measurable, quantitative, challenging, realistic, consistent, and prioritized. They should be established at corporate, divisional, and functional levels.
- Policies: The means by which annual objectives will be achieved.
Benefits of Strategic Management
- Organizations can be more proactive than reactive and shape their future.
- Firms can initiate and influence activities rather than just respond and exert control over their future.
Pitfalls in Strategic Planning
- Using strategic planning to control decisions and resources
- Satisfying accreditation requirements rather than developing good strategies
- Moving rapidly through mission to strategy formulation that can be confusing and unclear
- Employees not knowing the plan and continuing their jobs without understanding the strategy
- Top managers not supporting the planning process
- Not actively incorporating plans as a tool to evaluate performance
- Delegating planning to somebody other than managers
- Not including essential employees during all phases of planning
- Not establishing a climate that supports change
- Viewing planning as unnecessary
- Distinguishing planning activities as silos
- Becoming too engrossed in current issues to prioritize planning
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the key principles and processes of strategic management. This quiz covers the strategic management process, stages of strategy formulation, and the integration of analysis and intuition. Understand the benefits and challenges of strategic planning and its connection to business and military strategy.
