Lecture 11 Flashcards
What s strategic management
Strategic Management refers to the process of setting objectives, analysing both internal and external environment
What does strategic management involve planning
It involves planning, organizing, leading, and controlling resources in a way that aligns with a firm’s mission, vision, and strategic goals
What is strategic planning
Defining an organization’s long-term goals and deciding on the actions required to achieve them
What is environmental analysis
Evaluating external factors as well as internal factors
What is strategy formulation
Developing specific strategies to achieve objectives, including corporate, business, and functional strategies
What s strategy implementation
Translating strategies into actions through resource allocation, policy creation, and establishing structures and systems
What s strategy evaluation and control
Monitoring progress and making adjustments to strategies as needed
How does strategic management help create a competitive advantage
How Strategic Management Helps Create a Competitive Advantage:
- Enhances Focus
- Identifies Opportunities and Risks
- Improves Decision-Making
- Develops Core Competencies
- Drives Innovation and Adaptation
- Facilitates Competitive Positioning
How does strategic management enhance focuses
Enhances Focus: By setting clear objectives, strategic management helps organizations focus on core competencies and align resources efficiently
How can strategic management help identify opportunities and risks
strategic management helps firms anticipate market changes and adapt strategies to leverage opportunities while mitigating risks
How can strategic management improve decision making
strategic management supports more informed, long-term decisions
How can strategic management develop core competencies
Strategic management focuses on developing unique capabilities that competitors cannot easily replicate
How does strategic management drive innovation and adaptation
strategic management allows firms to respond to changing market demands and evolving industry trends
How does strategic management facilitate competitive positioning
Through well-crafted strategies, firms can position themselves uniquely in the market
What is the balance scorecard
The Balanced Scorecard (BSC) is a strategic performance management tool that provides a framework for organizations to translate their vision and strategy into actionable objectives and measures
What does the balance scorecard align
It aligns business activities with an organization’s vision and strategy
What perspectives does the balance scorecard typically include
The Balanced Scorecard typically includes four key perspectives:
- Financial Perspective
- Customer Perspective
- Internal Process Perspective
- Learning and Growth Perspective
What does the financial perspective of the balance scorecard focus on
Focuses on traditional financial metrics such as revenue, profitability, and shareholder value
What does financial perspective evaluate
This perspective evaluates how well the organization is achieving its financial goals
What does customer perspective assess
Assesses how well the organization is meeting customer needs and expectations
What are some metrics for the customer perspective
Metrics in this area include customer satisfaction, market share, and customer retention
What does the customer perspective help ensure
This perspective helps ensure that strategies enhance customer loyalty and market competitiveness
What does the internal process perspective focus on
Focuses on the internal processes and operations required to deliver value to customers and shareholders
What does the internal process perspective help identify
It helps identify areas for improvement in business processes
