Strategic Management Overview

Individuals, groups, or organizations impacted by a project or business venture.

The long-term plan of a firm, considering the changing environment.

Using firm resources and capabilities to create value.

The range of businesses a firm competes in.

Strategic decisions are made in unpredictable environments.

Extensive decisions that are difficult to make, especially in competitive, and diversified company environments operating in multiple locations/markets.

Strategic decisions must consider the entire firm, not just individual parts.

Improving a firm's value for its owners and other stakeholders.

Clear goals a firm sets to achieve success, but failure to determine how to achieve the goal can lead to strategic failure.

Elements contributing to a firm's success include aligning strategy with context, having a unique standpoint compared to rivals, and ensuring long-term sustainability

Resistance to change within a company, hindering adaptation to evolving environments.

Poor problem analysis, misinterpreting objectives as the strategy itself, poorly defined objectives, and organizational inertia.

Represents the desired long-term position or destination of a company.

Details and outlines how a company intends to achieve the mission.

Company's guiding beliefs, crucial for alignment with mission and vision, and preventing conflicting goals.

Importance of external relations for successful strategies, showing how connections improve outcomes.

A phenomenon where successful companies, due to their dominance, resist change and become vulnerable to new competitors who adapt better.

A structured approach to analyzing opportunities and threats, developing solutions, and taking actions to overcome challenges.

Favorable factors in the environment that can boost a company's success.

Unfavorable factors in the environment that can hinder a company's success.

Assets a company possesses to conduct its business, such as technology, skills, and expertise.

Activities a company excels at, leveraging valuable resources and capabilities.

Areas where a company struggles to perform well, hindering its success.

A characteristic that sets a company apart from its rivals, making it difficult for competitors to copy.

A division within a company that operates independently with its own product line, target market, and competitive strategy.

A plan outlining how each department or functional area will contribute to the overall business strategy.

The thorough process of researching a company's strengths, weaknesses, opportunities, and threats (SWOT) to inform strategy development.

A long-term, aspirational statement outlining the company's ultimate goal and desired future state.

A statement that defines the company's purpose, core values, and how it will achieve its vision.

Identifying opportunities and threats in the company's external environment (like competitors, customers, technology, and regulations).

An analytical framework that examines competitive forces within an industry to identify threats and opportunities.

A structured process of identifying a company's internal strengths and weaknesses, and external opportunities and threats.

Top Management is primarily responsible for formulating and implementing strategies to achieve overall goals, considering the company's resources, environment, and stakeholder interests.

Strategic decisions greatly impact the company as a whole, have long-term implications, and occur in uncertain environments with potential conflicts of interest.

Supervisors in diversified corporations play a vital role in formulating competitive strategies for their respective business units.

Top Management oversees the strategic process by defining the vision, mission, and goals, mobilizing resources, generating returns, managing conflicts, and interacting with external agents.

The Board of Directors is responsible for overseeing the strategic process and evaluating the performance of top managers to ensure the strategy's quality and shareholder value creation.

The Board of Directors utilizes Strategy Committees or the whole Board itself to conduct regular evaluations and control over top management's strategic actions and effectiveness.

It encompasses organizational structure, leadership, HR, and organizational culture, all essential components for supporting the execution of the strategy.

It refers to the systems and processes that help define and control the strategic plan, ensuring its effective implementation.

A systematic and logical approach to making strategic choices, considering all relevant factors and aiming for the best possible outcome.

A proactive approach anticipates challenges and opportunities, shaping the future, while a reactive approach responds to changes as they occur.

Ensuring all members of an organization clearly understand the company's goals and strategic direction.

Using a strategic framework to assess the alignment of lower-level decisions with the overall strategic goals.

The idea that decision-makers have limited information and cognitive abilities, leading to choices that might not be perfect but are satisfactory.

The process of gaining insights and adapting strategies during the decision-making process.

The influence of power dynamics, relationships, and negotiations on strategic decision-making.

The idea that effective strategic decision-making often involves a mix of rational and less rational factors.