Chap 3 Management overview Flashcards
is responsible for implementing strategies, ideas, goals or organizational challenges can come from any member of the company.
upper management
Prominent thinkers in the field include the , sometimes referred to as the founding father of management studies.
Peter Drucker,
TYPES OF STRATEGIC MANAGEMENT
SWOT analysis
Balanced Scorecard
A _ _is one of the types of strategic management frameworks used by organizations to build and test their business strategies.
SWOT analysis
A _ _ identifies and compares the strengths and weaknesses of an organization with the external opportunities and threats of its environment.
SWOT analysis
The _process helps leaders determine whether the organization’s resources and abilities will be effective in the competitive environment within which it has to function and to refine the strategies required to remain successful in this environment.
SWOT
What does your organization do better than your competition?
STRENGTHS
What does your organization need to improve upon?
WEAKNESSES
What market trends could lead
to increased sales?
OPPORTUNITIES
What are the advantages competitors have
over your organization?
THREATS
Strategic management helps keep goals achievable by using a clear and dynamic process for formulating steps and implementation.
Achieving goals:
Strategic management has been shown to lead to more efficient organizational performance, which leads to manageable growth.
.
Sustainable growth:
-Strategic management communication and goal implementation company-wide.
-An organization that is working in unison towards a goal is more likely to achieve that goal. .
Cohesive organization:
Strategic management means looking toward the company’s future. If managers do this consistently, they will be more aware of industry trends and challenges. By implementing strategic planning and thinking, they will be better prepared to face future challenges.
Increased managerial awareness:
is based around an organization’s clear understanding of its mission; its vision for where it wants to be in the future; and the values that will guide its actions.
Strategic management
t/f The process of StraMA requires a commitment to strategic planning, a subset of business management that involves an organization’s ability to set both short- and long-term goals.
True
Strategic management can be either
prescriptive or descriptive.
means developing strategies in advance of an organizational issue.
Prescriptive strategic management
means putting strategies. into practice when needed.
Descriptive strategic management.
is the ongoing planning, monitoring, analysis and assessment of all necessities an organization needs to meet its goals and objectives.
Strategic management
Strategic management gives businesses an advantage over competitors because its proactive nature means your company will always be aware of the changing market.
Competitive advantage:
benefits of strategic management
competitive advantage
achieving Goals
sustainable growth
cohesive organization
increased managerial awareness
A is a comprehensive evaluation of all the strengths, weaknesses, opportunities and threats of the strategy you compose.
SWOT analysis
t/f There are internal (strengths and weaknesses) and external (opportunities and threats) factors, you need to consider when conducting a SWOT analysis to help evaluate what variables can and cannot be changed in your strategic planning.
true
The is a strategic management system that translates the vision and strategy of an organization into operational objectives and measures.
Balanced Scorecard
Objectives and measures are developed for each of four perspectives:
the financial perspective,
the customer perspective,
the process perspective and
the learning and growth perspective.
The offers a measurement and management system that links strategic objectives to comprehensive performance indications.
balance scorecard
‘t/f The balance scorecard translates an organization’s mission and strategy into operational objectives and performance measures or four different perspectives:
True
describes the economic consequences of actions taken in the other three perspectives.
The financial perspective
defines the customer and market segments in which the business unit will compete.
b) The customer perspective
describes the internal processes needed to provide value for customers and owners.
internal business process perspective
defines the capabilities that an organization needs to create long-term growth and improvement.
The learning and growth (infrastructure) perspective
The learning and growth (infrastructure) perspective is concerned with three major enabling factors:
employee capabilities,
information systems capabilities, and employee attitudes (motivation, empowerment and alignment).
-establishes the long- and short-term financial performance objectives.
-is concerned with the global financial consequences of the other three perspectives
a. The Financial Perspective
The financial perspective has three strategic themes:
revenue growth,
cost reduction, and
asset utilization.
is the source of the revenue component for the financial objectives.
-This perspective defines and selects the customer and market segments in which the company chooses to compete.
b. Customer Perspective
are the means for creating customer and shareholder value.
- entails the identification of the processes needed to achieve the customer and financial objectives.
c. Process Perspective
is the source of the capabilities that enable the accomplishment of the other three perspectives’ objectives.
d. Learning and Growth (Infrastructure) Perspective
The learning and growth perspective has three major objectives:
increase employee capabilities;
increase motivation, empowerment, and alignment; and
increase information systems capabilities.
BASIC PRINCIPLES THAT CAN HELP STRATEGIC MANAGEMENT TO BE SUCCESSFUL
-Creating a Unique Strategic Position for the Proposition
-Consider the Availability or Potential Availability of Resources
-Understand the Importance of Values and Incentives
-Gain People’s Emotional Commitment to the Strategy
- Be open to strategies ideas wherever they originate
- keep the strategy flexible
