Chapter 1 Flashcards
Strategic/Strategy
Comes from the Greek term “Strategos” or “Strategia” which means ________.
Generalship
the art of the general to fight in war or direct military forces.
Etymology
Describes the goal-oriented actions a firm intends to take in its quest to gain and
sustain competitive advantage.
Entrepreneurs
Is creating a superior value.
Financial Strategists
Is about understanding where you are now, where you are heading, and how you
will get there.
Common Tao
Includes the determination and evaluation of alternative paths to an already
established mission or objectives.
Researchers
the term “___________” has its roots in the Latin word “manus
agere,” where “manus” means “hand” and “agere” means “to lead” or “to drive.” which
refers to the act of handling or controlling something with the hands.
Management
It is the basic function of management. It deals with chalking out a future course
of action & deciding in advance the most appropriate course of action for the
achievement of pre-determined goals
Planning
Planning is deciding in advance - what to do, when to do & how to do it. It
bridges the gap from where we are & where we want to be”
Harold Koontz, UCLA
Organizing is the process of bringing together _______, _________, and ________ and
developing productive relationships among them for the achievement of
organizational goals
Physical, Financial, Human Resources
To organize a business is to provide it with everything useful or its functioning
i.e. raw material, tools, capital, and personnel”.
Henry Fayol
It is that part of the managerial function that actuates the organizational
methods to work efficiently for the achievement of organizational purposes.
Directing
Recruiting and selecting employees for positions within the company.
Staffing
It implies measurement of accomplishment against the standards and correction
of deviation if any to ensure the achievement of organizational goals. This is to
ensure that everything occurs in conformity with the standards
Controlling/Evaluating
Strategic Management:
Is the ongoing ______, _______, ______, and _________ of all necessities
an organization needs to meet its goals and objectives.
Planning
Monitoring
Analysis
Assessment
Strategic Management:
Is the art and science of _______, ________, and _______
cross-functional decisions that enable the organization to achieve its objectives.
Formulating
Implementing
Evaluating
The Purpose of Strategic Planning is to ______ and _______ and __________
explore, create new, different opportunities for tomorrow
is the company’s game plan.
Strategic Plan
In developing a Strategic Plan, it is essential to anticipate future
environmental challenges to an organization and draw up an appropriate strategic plan
for responding to these challenges.
Igor Ansoff
STAGES OF STRATEGIC MANAGEMENT
- Strategy Formulation
- Strategy Implementation
- Strategy Evaluation
the process of developing a vision and mission
statement, identifying the organization’s SWOT, and establishing long-term
objectives.
Strategy Formulation
ISSUES IN STRATEGY FORMULATION
- Businesses to enter
- Businesses to Abandon
- Allocation of resources
- Expansion or Diversification
- International Markets
- mergers or Joint Ventures
- Avoidance of Hostile Takeover
requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources.
Strategy Implementation
knowing what strategies are not working well.
Strategy Evaluation
Three Fundamental Strategy Evaluation Activities:
(1) Reviewing external and internal factors that are the basis for current strategies.
(2) Measuring Performance
(3) Taking Corrective actions
LEVELS OF STRATEGY
- Corporate Level Strategies
- Business Level Strategy
- Functional Level Strategy
are formulated strategies according to the organization’s wise policies. These are futuristic, innovative, and pervasive. (Chairman and Board of Directors, CEO, COO)
Corporate Level Strategies
are strategies formulated by SBU (Strategic
Business Units). This includes comprehensive plans and allocation of resources. (Chairman of Division).
Business Level Strategy
these strategies are those that deal with a
relatively restricted plan providing objectives for specific functions of the major functions.
Functional Level Strategy
KEY TERMS IN STRATEGIC MANAGEMENT
- Competitive Advantage
- Strategists
- Long-Term Objectives
- Goals
- Objectives
- Annual Strategies
- Policies
any activity a firm does specifically well
compared to activities of other companies.
Competitive Advantage
STRATEGIES OF COMPETITIVE ADVANTAGE:
Industry Based Model
Resource Based Model
searching and scanning the most profitable
business activities that would give the best investment return.
Industry Based Model
this refers to the analyses of the prevailing
resources available to the firm that are present in the internal environment which could be utilized in the development of competitive advantage.
Resource Based Model
are the individuals responsible for an organization's success or failure.
Strategists
the specific results that the organization seeks in pursuing its basic mission.
Long-Term Objectives
are achievable outcomes that are generally broad and longer-term.
Goals
are short-term measurable actions to achieve an overall goal. This includes the list of documented steps that assist in fulfilling the goal of the strategy. This follows the paradigm of SMART (Specific, Measurable, Attainable,
Realistic, and time-bound)
Objectives
these are short-term milestones that an organization must achieve to reach long-term objectives.
Annual Strategies
these are standards on how annual objectives will be achieved.
Policies
BENEFITS OF ENGAGING IN STRATEGIC MANAGEMENT
Financial Benefits
Non-Financial Benefits
