8.2 Strategic management: meaning and purpose Flashcards
What are the three key stages of strategic management?
The three key stages are strategic analysis, strategic choice, and strategic implementation.
What is the main purpose of strategic analysis?
The main purpose of strategic analysis is to assess the current position of the company in relation to its market, competitors, and external environment.
Why is strategic analysis important?
Strategic analysis ensures decisions are based on knowledge of the business’s current position, preventing inappropriate and ineffective choices.
What is the main purpose of strategic choice?
The main purpose of strategic choice is to make important long-term decisions that push the business toward its objectives.
What factors should be considered when making strategic choices?
Strategic choices should be challenging to gain competitive advantage but also achievable and affordable within available resources.
What is the main purpose of strategic implementation?
The main purpose of strategic implementation is to allocate sufficient resources and evaluate success to ensure strategic decisions are effectively carried out.
Why is strategic implementation crucial?
Without successful implementation, strategic changes cannot be effective, as it ensures the right resources, structure, and motivation are in place.
What factors are essential for successful strategic implementation?
Factors include an appropriate organizational structure, adequate resources, motivated staff, supportive leadership and culture, and control systems to monitor progress.
What is the difference between strategy and tactics?
Strategy involves long-term decisions made by senior managers and affects the whole business, while tactics involve short- to medium-term decisions made by lower managers and usually affect only one department.
What are strategic decisions?
Strategic decisions are long-term, difficult to reverse, made by senior managers, and cross-functional, involving all major departments of the business.
What are tactical decisions?
Tactical decisions are short- to medium-term, reversible, made by less senior managers, and usually affect only one department.
Why is strategic management important for a business?
Strategic management is important because it helps businesses plan for the future, respond logically to changing environments, and make effective long-term decisions based on clear objectives.
What are examples of strategic decisions?
Examples include developing new markets abroad or launching a new product line.
What are examples of tactical decisions?
Examples include changing the packaging size of a product or adjusting prices for specific markets.
