Strategic management

Question 1

Strategic management

Answer 1

Involves analysing, choosing strategies and implementing them in order to meet a business’s long term objectives.

Question 2

Influences on formation of strategy

Answer 2

1. Resources available
2. Strengths of a business
3. Competitive environment
4. Objectives

Question 3

Strategic analysis

Answer 3

Process of assessing the current position of a business in relation to its market, competitors and the external environment.

Question 4

Strategic choice

Answer 4

Strategic choice analyses the benefits and limitations of different strategic options and decides between them.

Question 5

Strategic implementation

Answer 5

Process of allocating sufficient resources to put decisions into effect and evaluating success.

Question 6

Evaluation of strategic management

Answer 6

• Effectiveness depends on understanding and execution of techniques by managers plus effective communication to employees.
• No strategy means a business will be at the mercy of factors beyond its control: economic changes and competitors’ strategies.
• Strategic management will always be guided by managers’ attitude to risk, and if they appear to be cautious / risk averse.

Question 7

Strategy

Answer 7

A plan of action to achieve a long-term goal