Intro + SM Model

Question 1

Why do we need strategic management?

Answer 1

Because most business activities and processes are too complex to be done by one person, which means they are divided. Employees become specialists, but since there are many of them, they need a manager (who needs to be a generalist). It is important that they have the company’s strategy in mind, so they can correctly coordinate and delegate.

Question 2

State 3 stakeholders of SM

Answer 2

1. capital market stakeholders (shareholders, lenders)
2. product market stakeholders (suppliers, buyers)
3. organsation stakeholders (employees, managers)

Question 3

def strategic management

Answer 3

= set of long-term managerial decisions and actions (doing the right things, not doing them in the right way)

Question 4

define the strategic management model (4)

Answer 4

1. strategy analysis
2. strategy formulation
3. strategy implementation
4. strategic control

Question 5

State three main points about strategy analysis from the What is Strategy? HBR article

Answer 5

1.
2.
3.

Question 6

define strategy formulation

Answer 6

development of long-term plans with the purpose of using strengths and overcoming the weaknesses (reacting to external opportunities and threats)

Question 7

state 5 possible events that trigger changes in strategy

Answer 7

1. new CEO
2. external intervention
3. change in ownership
4. performance gap
5. strategic inflection point (= point in a business cycle where strategy has to change due to the part of the cycle the company is in)

Question 8

define strategy implementation and state how it is done (4 examples)

Answer 8

it’s a set of activities required for the execution of the strategic plan

1. programs, campaigns
2. changing organisational structure and culture
3. proper leadership
4. proper performance management

Question 9

state two parts of strategic control

Answer 9

1. control of strategic suitability (is this strategy the correct one; controlling results)
2. control of strategy implementation (are we on the planned path, controlling employee behaviour)