Strategic management Flashcards
definition: ideas and actions that focus on securing a desired future for an organization
strategies
definition: management philosophy that emphasizes thinking in terms of strategies
strategic mgmt
definition: addresses the questions of what we should be doing and why we are doing it
strategic thinking
definition: addresses how and when action should be taken
strategic planning
Who develops a strategic plan?
HRM
What are the core elements of a strategic plan (“strategic planning cycle”)?
Identify the organization’s vision, values, and mission
Develop a long range strategic plan
Develop an operational objective for each goal
Implement the operational plans
Monitor and evaluate operational activities
definition: Top down model (CEO/ COO/ CFO)
i.e. executive team determines and communicates to the company
Commanding model
Commanding model of strategic planning is usually found in what kind of companies?
private
The change model of strategic planning is based on what model of change?
behavioral model of change
–> managers, executives and sometimes staff work to find new ways to approach problems
definition: Strategic planning model where there is often brainstorming with members at all levels of leadership of a company
–> Goal is to get input from everyone and to get a better understanding at all levels of the organization
collaborative model
What type of companies is the collaborative model commonly used?
non-profit
academics
corporations that require input
What type of model is the same as Collaborative but pulls in all levels and tries to incorporate organizational culture into the process?
cultural model
definition: The underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization
organizational culture
definition: model that works from the bottom Up – Strategic initiatives start with front line staff and managers and feed up to the executives
–> Companies like this approach but seldom can actually make it happen
“Flipping the Pyramid “
crescive model
A basic model has a ____ approach.
top-down
Basic models of strategic planning has a __ step process and is often used for what type of businesses?
5 steps
small businesses
The issue-based models of strategic planning is an expansion of the basic model but has how many steps?
10 steps
definition: strategic model that focuses on aligning resources and efforts to achieve the mission
- Often used when companies need to step back and reassess who they are and what they do
- Happens with mergers and acquisitions
alignment model
definition: strategic model that evaluates “what if” scenario
scenario model
definition: the legal designation assumed by a business
–> many businesses are involved
–> BOD is responsible for strategic planning
organization structure
(true/false) An organization’s internal support varies by organizational size
true
What are the key elements of a business plan?
- marketing plan
- operations plan
- financial plan
What does the strategic plan identify?
Why and what
What does a business plan identify?
How
What is derived from a strategic plan and provides more specificity regarding how the business will be operated?
business plan
(true/false) Operational plans can differ from the strategic plan
true
What is SWOT short for?
Strength
Weakness
Opportunities
Threat
What does PEST stand for?
Political
Economic
Social
Technological
What is SWOT used for?
Evaluating variables that can alter the plan –> helps organize information from the external environment
What is PEST used for?
environmental scanning
Where can you find the data for demographics?
Bureau of Labor Statistics
Census
Health and Human Services
National Center for Health Statistic
Where can you find the data for economics?
Bureau of Economic Analysis
Census Bureau
Economic Development Administration
What are the three types of stakeholders?
Internal (employees)
Interface (organization contract employees)
External (consumer, surveyors, competitors)
(true/false) All Organizations no matter the size should do some type of strategic planning – the frequency and vigor by which they do it depends on many organizational factors
true
(true/false) Organizations should start with External Forces (opportunities and threats) before they look at Internal Forces (strengths and weaknesses)
true
(true/false) Internal environmental scope can cover an entire organization OR just a segment of the business.
true
definition: represents the characteristics of the business at a specific point or period in time.
internal environmental assessment
(true/false) Internal changes are not rapid, temporary, or permanent.
False (they can be)
What are areas assessed by a compliance program?
Code of conduct
Compliance infrastructure (e.g., compliance officer)
Policies (what) and procedures (how)
Prevention measures (e.g., training)
Violation responses (e.g., contacts)
definition: refers to an individual who ensures a company complies with its outside regulatory requirements and internal policies. Often reports directly to the Board of Directors (BOD) on compliance issues
Compliance officer
–> entire department in large corporations
What are the regulatory compliance areas?
Employment
Environmental impact
Financial management and taxation
Heath services coverage and reimbursement
Occupational health and safety
Securities and exchange
Service delivery (licensure, registration, etc.)
definition: The act of governing in an organization to oversee the broad scope of the organization
organizational governance
“big picture” team
What type of BOD is most common in large corporations and many non-profits – set guidelines, appoints CEO, oversees company but does not participate in day to day?
policy governance
What kind of BOD does the same as policy boards but also participates in day to day operations – oversees committees that do some part of the work for the organization?
working board
What type of BOD may you see in small non-profits?
collective board (RARE)
It is common for growth organizations to restructure after how long?
3 months to a year
What are the two parts of organizational structure?
- Clearly Defined Roles
- Clearly Defined Reporting and Relationships
Who commonly a conducts a financial audit (examination) of a business’s financial statements and records?
third party company
–> The third party renders its opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.
What does CORE stand for in an internal environmental scan?
Culture
Objectives
Resources
Excellence
What does status stand for in an internal environment scan?
Status
Technology
Authority
Talent
Uniqueness
Satisfaction
definition:
- Reflects what is expected and valued throughout the organization
- Is management’s means of transmitting expectations, shaping attitudes, shaping behaviors, and motivating employees
culture
Definition: action statements that, when enacted, will help move an organization toward achievement of its goals
objectives
An organization’s _____ sets parameters for objectives and goals.
mission statement
definition: Intangibles that can give you a competitive edge (company’s reputation, past performance)
goodwill
definition: Only alternative for a one person company looking for limited liability, without the liability of corporate taxes
S corporation
What are advantages of S corporations?
Ease in raising capital
Continuity of existence without the original owner
What are disadvantages of S corporations?
High regulation
Legal restrictions, ownership restrictions
What are C corporations formed under?
State law
(true/false) An attorney is required for C corporations.
FALSE
What are disadvantages of C Corporations?
- Subject to income tax on profits
- If profits go to the owners, they then must pay tax on it (double taxation)
- More regulation and legal restrictions
What are advantages of C corporations?
- Limited personal liability
- Ease of ownership transfer
- Will continue to exist without the original owners
- Easiest time raising capital
definition: The underlying dynamics in an organization
informal power
What is the process that is helpful in determining strength and weaknesses?
CORE STATUS
