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Questions and Answers
What is the primary purpose of a critical feedback mechanism in setting objectives?
What is the primary purpose of a critical feedback mechanism in setting objectives?
What type of decisions are concerned with the overall growth of an organization?
What type of decisions are concerned with the overall growth of an organization?
What is the frequency of operational decisions?
What is the frequency of operational decisions?
What type of decisions are based on the welfare of employees working in a factory?
What type of decisions are based on the welfare of employees working in a factory?
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What is the primary focus of strategic decisions?
What is the primary focus of strategic decisions?
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What type of decisions are taken in accordance with organizational mission and vision?
What type of decisions are taken in accordance with organizational mission and vision?
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What is the purpose of data analysis in the context of setting objectives?
What is the purpose of data analysis in the context of setting objectives?
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What type of decisions are related to the production process?
What type of decisions are related to the production process?
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What is the primary purpose of review in the context of setting objectives?
What is the primary purpose of review in the context of setting objectives?
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What type of decisions are taken daily?
What type of decisions are taken daily?
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Study Notes
The Strategic Management Process
- Leadership is required to build an appropriate organizational structure, develop a management culture, control strategic processes, and steer the organization through corporate governance.
Environmental Scanning
- Involves collecting, scrutinizing, and providing information for strategic purposes.
SWOT Analysis
- A framework used to identify an organization's strengths, weaknesses, opportunities, and threats.
PEST Analysis
- A tool used to analyze the external environment of an organization.
Strategy Formation
- The process of choosing the most appropriate course of action to achieve organizational goals and objectives, thereby realizing the organizational vision.
- Involves examining an organization's resources, providing a financial plan, and establishing the most appropriate action plan to increase profits.
Mission and Vision of an Organization
- Mission: defines the organization's business, objectives, and how it will reach them.
- Vision: defines where the organization aspires to go.
Steps of Strategy Formation
- Factors affecting the choice of strategy, including organizational goals, strengths, potential, limitations, and external opportunities.
Levels of Strategy
- Corporate Level: a long-range, action-oriented, integrated, and comprehensive plan formulated by top management.
- Business Level: relates to a particular business and is developed by general managers who convert mission and vision into concrete strategies.
- Functional Level Strategy: involves decision-making at the operational level concerning particular functional areas like marketing, production, and human resources.
Corporate Level Strategies
- Stability: involves keeping operations within normal parameters to focus on core competencies and increase profit while minimizing risk.
- Expansion: involves expanding the company's business operations and activities to achieve long-term goals.
- Retrenchment: involves reducing the size and scope of the company's operations to cut costs and improve efficiency.
- Combination: involves simultaneously implementing two or more strategies.
Porter's Five Forces
- A model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths.
Strategy Implementation
- The process of turning plans into action to reach a desired outcome.
- Implementation is vital to success.
Strategic Evaluation
- The process of assessing the effectiveness and efficiency of a strategic plan or initiative.
- Involves setting objectives, collecting data, developing KPIs, analysis, interpretation, and action.
Strategic vs Operational Decisions
- Strategic decisions are long-term decisions concerned with the overall planning of an organization.
- Operational decisions are short-term decisions concerned with the day-to-day operations of an organization.
- Administrative decisions are medium-term decisions concerned with the management of an organization.
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Description
This quiz covers the strategic management process, including leadership, environmental scanning, SWOT analysis, and PEST analysis. It's essential for understanding how organizations make strategic decisions.
