chapter 1&2 Flashcards
Capstone course of all management and business subjects
Strategic Management
Gives preferential attention to planning
Strategic Management
Sets and defines the overall direction of a company
Top level management
Defines and directs the achievement of short and long term company goals and objectives
Strategic Management
Define their plans and directions according to the overall direction of the top level management
Middle and lower level managers
Forerunner of strategic management
Business Policy
Refers to the process of defining the long term goals of a company as determined by the members of the top level management
Business Policy
Performs planning, analysing, staffing, directing and controlling with equal importance
Manager
Determines the long run performance of a company.
Strategic Management
Includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control
Strategic Management
David (2013) art and science of formulating, implementing and evaluation cross functional decisions
Strategic Management
Operationally refers to a management’s continuous rational process of defining long term direction of a company.
Strategic Management
Exploit and create new and different opportunities for tomorrow
Strategic Management
Refers to the development of long term goals and objectives of a company after conducting a thorough analysis of the various forces comprising its environment
Strategy Formulation
Wherein different strategic plans are put into action and are aligned with defines business programs, procedures, and budgets.
Strategy Implementation
Covers the structuring of organizational programs, assignment of monetary values.
Strategy Implementation
Wherein the operating performance of a company is monitored and evaluated, remedial action is made
Strategy Evaluation and Control
Top level managers simply require different departments and functional areas to prepare budgets and targets based on information generated within the company
Short Term Financial Planning Phase
the top-level management merely extends the time period of the planning process from one year to five years. Info and data used are still coming from within the company.
Medium Term Planning Phase
planning process is done by the top-level management who prepare strategic plans with little participation and inputs from the lower levels.
Strategic Planning Phase
Various inputs and participation from different levels of management, units, and departments should be considered. Planning has to be decentralized.
Strategic Management Phase
Known as environmental scanning, involves the gathering of relevant and reliable information and a thorough evaluation of the different forces comprising the external and internal environments of a company.
Strategy Analysis
Determines sustainability issues that will reduce the impact of physical resources on a business
Physical Environment
the critical surveillance and evaluation of events happening in the external environment that may influence the current position and future plans of a company.
Environmental Scanning
Environmental process of tracking the environmental trends or sequence of events determined during an environmental scanning.
Environmental Monitoring
a systematic process of collecting, analyzing, and interpreting information about business competitors. Intended to monitor the probable moves of competitors. Five forces of competition model.
Competitive Intelligence
Greek word strategos, means generalship
Strategy
Art of planning and directing larger military movements
Strategy
Using available knowledge to document the intended direction of a business and the actionable step to reach its goals
Formulation
Establish annual objectives, devise policies, motivate employees
Implementation
Useful for making decisions in situations of great uncertainty or little precedent
Intuition
Anything that the firm does especially well compare to rival firms
Competitive Advantage
Individuals who are most responsible for the success or failure of an organization
Strategists
What is our business? What do we want to become?
Vision & Mission Statement
Economic, social,… that could significantly benefit or harm an organization in the future
External Opportunities and Threats
The org’s controllable activities that are performed well or poorly
Internal Strengths and Weaknesses
Objectives that are specific results that an org. seeks to achieve in pursuing basic mission
Long term objectives
Means by which long term objectives will be achieved
Strategies
Short term milestones that the org must achieve to reach long term objectives
Annual objectives
Means by which annual objectives will be achieved
Policies
Better sales, productivity
Financial Benefits
Error Reduction
Non Financial Benefits
Gathering relevant information from diverse sources
Data Collection
Transforming raw data into meaningful insights through quati and quali techniques
Analysis
Creating comprehensive profiles or competitors
Competitor Profiling
Evaluating market dynamics, customer behaviors and trends
Market assessment
Landforms, water bodies, climate, flora and fauna
Natural Elements
Encompassing urban landscapes, buildings, transportation networks
Built Infrastructure
