Prelims Flashcards
BASIC MODEL OF STRATEGIC MANAGEMENT
monitoring, evaluating, and disseminating information from internal and external environments to key people within the corporation
Environmental Scanning
BASIC MODEL OF STRATEGIC MANAGEMENT
development of long-range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses (SWOT)
Strategy Formulation
THREE TYPES OF STRATEGY
- Describes a company’s overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines
- Top Management
Corporate Strategy
THREE TYPES OF STRATEGY
- Occurs at the business unit or product level, and it emphasizes the improvement of the competitive position of a corperation’s products or services in the specific industry served by that business unit
- Middle Management
Business Strategy
THREE TYPES OF STRATEGY
- the approach taken by a functional area to achieve corporate and business unit objectives or strategies by maximizing resource productivity.
- Functional Areas of Management
Functional Strategy
A process by which strategies and policies are put into action through the development of programs, budgets, and procedures
- Programs is a statement of activities or steps needed to accomplish a single-use plan
- Budget is a detailed cost of each program
- Procedures are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done
Strategy Implementation
A process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance
Evaluation and Control
Characteristics of Strategic Decision Making (3)
- Rare
- Consequential
- Directive
MINTZBERG’S (4) MODES OR APPROACHES TO STRATEGIC DECISION-MAKING
The focus is on opportunities, problems are secondary
Entrepreneurial Mode
MINTZBERG’S (4) MODES OR APPROACHES TO STRATEGIC DECISION-MAKING
Characterized by reactive solutions to existing problems, rather than a proactive search for new
opportunities
Adaptive Mode
MINTZBERG’S (4) MODES OR APPROACHES TO STRATEGIC DECISION-MAKING
Involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy
Planning Mode
MINTZBERG’S (4) MODES OR APPROACHES TO STRATEGIC DECISION-MAKING
- A synthesis of the planning, adaptive, and to a lesser extent entrepreneurial mode
- There is a deliberation on which aspects are to be included or considered
Logical Incrementelism
PHASES OF STRATEGIC MANAGEMENT (4)
- Basic Financial Planning
- Forecast Based Planning
- Externally Oriented Strategic Planning
- Strategic Management
8 STEPS STRATEGIC DECISION MAKING PROGESS
- Evaluate current performance results
- Review corporate governance
- Scan and assess the external environment
- Scan and assess the internal environment
- Analyze strategic (SWOT) factors
- Generate, evaluate, and select the best alternative strategy
- Implement selected strategies
- Evaluate implemented strategies
