PRELIM: PPT Flashcards
What are the challenges of strategic management?
1.Rapid technological change
2. Globalization
3. Economic and geopolitical instability
4. Sustainability and environmental concerns
5. Workforce challenge
6. Consumer expectations
7. Innovation and disruption
8. Resistance to change
9. Data overload and cybersecurity
10. Regulatory and compliance pressures
11. Short termism
12. Cultural and ethical challenges
What is the process of strategic management
- Goal Setting
- Environmental Scanning
- Strategy Formulation
- Strategic Implementation
- Evaluation and Control
It is a structured approach used by organizations to formulate and implement strategies that align with their goals and objectives
Strategic management process
It establishes the foundation for the organization’s strategy by defining its purpose and direction
Goal Setting (Mission and Vision)
A long-term aspiration that describes what the organization aims to achieve in the future.
Vision statement
A concise declaration of the organization’s core purpose and how it serves its stakeholders
Mission statement
Specific, measurable objectives that align with the vision and mission, gulding overall strategy.
Goals
Identify internal and external factors that impact the organization.
Environmental Scanning or Analysis
Evaluate Strengths, Weaknesses (intemal). Opportunities, and Threats (external).
SWOT Analysis
Analyze external factors-Political. Economic, Social, Technological, Legal, Environmental.
PESTLE Analysis
Use frameworks like Porter’s Five Forces to assess competition and market dynamics.
Industry Analysis
Develop strategies to achieve the goals set in alignment with the analysis
Strategy Formulation
What are the types of strategies in strategy formulation?
- Corporate-level strategy
- Business-level strategy
- Functional-level strategy
Put the formulated strategies into action
Strategy implementation
Monitor and measure performance to ensure alignment with goals.
Evaluation and control
The speed of innovation in fields like artificial intelligence, automation, and data analytics requires
Rapid technological change
Managing operations in diverse cultural, economic, and regulatory environments adds complexity to strategy formulation and implementation
Globalization
Fluctuations in currency, inflation, and recession risks can disrupt long-term strategic plans.
► Trade wars, sanctions, and political instability in certain regions create uncertainty for global businesses
Economic and geopolitical instability
Balancing profitability with environmental and social responsibilities is increasingly important.
Sustainability and environmental concerns
Adapting to changing workforce dynamics, such as remote work and hybrid models, can disrupt traditional management structures
Workforce challenge
The demand for personalization, convenience, and socially responsible products pushes companies to rethink their value propositions.
Consumer expectations
Innovation and disruption
Employees and stakeholders may resist strategic changes, especially if they involve significant organizational restructuring or cultural shifts
Resistance to change
The explosion of data creates opportunities for data-driven decision-making but also challenges in managing and analyzing information effectively
Data overload and cybersecurity
Adapting to new and complex regulations, especially in industries like finance, healthcare, and technology, can be costly and time-consuming
Regulatory and compliance pressure
Pressure from shareholders or market demands often forces organizations to prioritize short-term gains over long-term strategic goals
Short-termism
►Managing cultural diversity across global teams while maintaining a unified corporate culture is a significant challenge
Cultural and ethical challenges
Foster adaptability to respond quickly to changes.
Flexibility and agility
Embrace innovation and invest in employee development.
Continuous learning
Build alliances to share resources and reduce risks
Collaboration and partnerships
Integrate environmental and social goals into strategies.
Sustainability focus
Leverage analytics for better forecasting and insights.
Data-driven decision making
Overall direction of the organization (e.g. diversification merger)
Corporate-level strategy
Overall direction of the organization (e.g. diversification merger)
Corporate-level strategy
How to compete in a specific market (e.g, cost leadership, differentiation)
Business-level strategy
How to compete in a specific market (e.g, cost leadership, differentiation)
Business-level strategy
Tactical plans for departments like marketing, finance, and HR.
Functional-level strategy
