30 Questions
What is the purpose of environmental scanning?
To identify strategic factors determining the future of the corporation
Which of the following is true about SWOT Analysis?
It is used to conduct environmental scanning
Who typically controls the internal environment of a corporation?
Top management
What are examples of external factors in the external environment of an organization?
Technological factors and legal factors
What is one drawback of environmental analysis mentioned in the text?
It does not predict the future or eliminate uncertainty
Why are external factors not typically within the control of top management?
Because external factors are outside the organization's boundaries
What is the main goal of a capstone course in business schools?
To integrate knowledge across different business fields
Which of the following best describes the characteristic of strategy as a Systematic Phenomenon?
Comprises a unified and comprehensive plan of action
How does the text define strategy as Multidisciplinary?
Strategy involves a holistic view and influences various functional areas
What characterizes strategy as Hierarchical according to the text?
Corporate strategies are decided by the top management
Which of the following is NOT true about strategy as mentioned in the text?
Strategy involves contradictory action plans
What role does a chief strategy officer (CSO) play in many companies today?
Bringing synergy between different functional areas for strategic planning
What is the main focus of policies in an organization?
Achieving corporate goals
At what level of strategy formulation does the focus shift to how an organization is going to grow?
Functional level strategy
What is the primary concern of corporate level strategy?
What businesses to enter the market
Which of the following is NOT a part of corporate level strategy considerations?
How to compete effectively
What is the last step after formulating a strategy in an organization?
Effective implementation
In which level of strategy formulation is the focus on how the organization is going to compete in the market?
Business level strategy
What is emphasized as a key factor for effective strategic management?
Learning process for all managers and employees
Why should strategic management welcome bad news?
To address issues promptly
What is an important consideration in shaping a company's strategy according to the text?
Societal, political, regulatory, and citizenship factors
How should a company tailor its strategy according to competitive conditions?
Adapt strategy to fit industry and competitive conditions
What is the significance of social expectations and ethical considerations in shaping a strategy?
They play a vital role in shaping a strategy
Why is it important for strategic management to be a people process?
To involve all managers and employees in the process
What is the main difference between strategy and management in strategic management?
Strategy focuses on achieving long-term goals, while management focuses on controlling things or people.
What does the term 'strategic management' encompass?
Formulating, implementing, and evaluating decisions to achieve long-term goals.
What is the purpose of strategic management?
To exploit and create new opportunities for the future.
How did Sun Tzu contribute to the concept of strategic management?
He emphasized that strategic management has an art component through his book 'The Art of War'.
How does strategic management relate to the organization's future direction?
It involves making decisions about the organization's future direction.
In what context did the concept of strategy originate from?
Military principles, particularly in planning to win a war.
Study Notes
Strategic Management Definition
- Strategic management is the art and science of formatting, implementing, and evaluating cross-functional decisions to achieve an organization's long-term goals and objectives.
- It involves making decisions about an organization's future direction and implementing those decisions.
History of Strategic Management
- The concept of strategy is derived from military principles, where a strategy is a plan of action to win a war.
- The ancient Chinese strategist Sun Tzu wrote about strategic management in his book "The Art of War".
- The term "strategic management" is used synonymously with "strategic planning".
- The goal of strategic management is to exploit and create new opportunities for tomorrow.
Characteristics of Strategic Management
- Hierarchical: Corporate strategies come first, followed by business unit strategies, and then functional strategies.
- Dynamic: Strategic management is a dynamic system that involves a series of action plans.
- Multi-dimensional: Strategic management involves multiple disciplines, including marketing, finance, human resource, and operations.
Environmental Scanning
- Environmental scanning is the monitoring, evaluating, and dissemination of information from internal and external environments.
- Its purpose is to identify strategic factors that will determine the future of the corporation.
- External environment consists of opportunities and threats outside the organization, such as technological, legal, and social factors.
- Internal environment consists of variables within the organization, such as company structure, culture, and resources.
Levels of Strategy Formulation
- Corporate level strategy: Outlines what the organization wants to achieve, such as growth, stability, or acquisition.
- Business level strategy: Answers how the organization will compete, focusing on strategic business units (SBU).
- Functional level strategy: Concentrates on how the organization will grow, defining daily actions and allocating resources.
Strategy Implementation
- Strategy implementation is the action stage, where formulated strategies are put into practice.
- Effective implementation is crucial for the success of a strategy.
Guidelines for Effective Strategic Management
- Strategic management should be a people process, not just a paper process.
- It should be a learning process for all managers and employees.
- Keep the process simple and varied.
- Welcome bad news and be open-minded.
- Do not propose too many strategies at once.
Factors That Shape a Company's Strategy
- Societal, political, and regulatory considerations affect crafting strategy.
- Competitive conditions and industry attractiveness, such as price, product quality, and service, shape a strategy.
- Economic, societal, political, and citizenship factors limit strategic actions a company can take.
Learn about environmental scanning, which involves monitoring and evaluating internal and external environments to identify strategic factors affecting a corporation's future. Discover how to conduct environmental scanning through SWOT Analysis, which assesses strengths, weaknesses, opportunities, and threats.
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