Introduction in strategic management Flashcards
It is the strategic use of business’ resources to reach company goals and objectives.
STRATEGIC MANAGEMENT
It requires reflection on the process and procedures within the organizational as well as external factors that may impact how the company functions.
STRATEGIC MANAGEMENT
It includes setting objectives for the company, reviewing the organization’s internal structure, evaluating current strategies and confirming that strategies are implemented company-wide.
STRATEGIC MANAGEMENT
A STRATEGIC PLAN is a
Company’s Game Plan
4 Stages to Strategic Management
ANALYSIS
FORMATION
EXECUTION
EVALUATION
Before planning a new strategic process, you must evaluate the current process to achieve your goal.
Analysis in Strategic Management
Two types of Analysis:
SWOT analysis
PEST analysis
framework used to evaluate a company’s competitive position and to develop strategic planning.
SWOT Analysis
assesses internal and external factors, as well as current and future potential.
SWOT analysis
management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market.
PEST Analysis
These are government policies, regulations, and political stability that influences business operations.
POLITICAL
These affect the purchasing power of consumers and business profitability.
ECONOMIC
These involve cultural, demographic, and lifestyle trends that shape consumer preferences.
SOCIAL
These involve innovations that affect business operations, efficiency, and consumer expectations.
TECHNOLOGICAL
it includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue
Strategy formulation/Formulation in strategic management
Once you have the information you need, it is time to create an action plan for reaching the goal.
Formulation in Strategic Management
Make sure the steps are clear, focused and directly related to the goal.
Formulation in Strategic Management
Prepare easy to understand implementation guidelines if the process or procedure will impact many people within the organization.
Formulation in Strategic Management
This is often called the “action stage” of strategic management.
Execution in Strategic Management
means mobilizing employees and managers to put formulated strategies into action.
Implementing strategy
Often considered to be the most difficult stage in strategic management, strategy implementation requires personal discipline, commitment, and sacrifice.
Execution in Strategic Management
is the final stage in strategic management.
Strategy evaluation
Managers desperately need to know when particular strategies are not working well; strategy _____ is the primary means for obtaining this information.
Strategy evaluation
All strategies are subject to future modification because external and internal factors are constantly changing.
Evaluation in Strategic Management
Three fundamental strategy-evaluation activities are
(1) reviewing external and internal factors that are the bases for current strategies,
(2) measuring performance, and
(3) taking corrective actions.
