STRATEGIC MANAGEMENT Flashcards by Yhelza Ocumas

It’s is the strategic use of business’ resources to
reach company goals and objectives.

STRATEGIC MANAGEMENT

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It requires reflection on the process and procedures
within the organizational as well as
external factors that may impact how the company
functions.

STRATEGIC MANAGEMENT

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It includes setting objectives for the company,
reviewing the organization’s internal structure,
evaluating current strategies and confirming that
strategies are implemented company-wide.

STRATEGIC MANAGEMENT

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A STRATEGIC PLAN IS A ___________

COMPANY’S GAME PLAN

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Four Stages to Strategic Management

Analysis
Formation
Execution
Evaluation

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Before planning a news strategic process, you must
evaluate the current process to achieve your goal.

ANALYSIS

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Two types of Analysis

SWOT ANALYSIS & PEST ANALYSIS

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SWOT STANDS FOR?

STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS

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a framework used to evaluate a
company’s competitive position and to develop
strategic planning

SWOT ANALYSIS

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It assesses internal
and external factors, as well as current and future
potential.

SWOT ANALYSIS

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PEST STANDS FOR?

POLITICAL, ECONOMIC, SOCIAL, AND TECHNOLOGICAL

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assess major external factors that
influence its operation in order to become more
competitive in the market.

PEST ANALYSIS

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includes developing a vision and
mission

STRATEGY FORMULATION

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STRATEGY FORMULATION

(1) Once you have the information you need, it is time to ____________ for reaching the goal.

create an action plan

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STRATEGY FORMULATION

(2) Make sure the steps are clear, focused and
directly related to the goal.

(TRUE OR FALSE?)

TRUE

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STRATEGY FORMULATION

(3) Prepare easy to understand ___________ if the process or procedure will
impact many people within the organization.

implementation
guidelines

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often called the “action stage” of strategic
management

EXECUTION

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mobilizing employees and managers to put formulated strategies into action.

Implementing strategy

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Often considered to be the most
difficult stage in strategic management

STRATEGY IMPLEMENTATION

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strategy
implementation requires ___________ ,_________, and
_________.

PCS

personal discipline ,commitment, and
sacrifice

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the final stage in strategic
management.

STRATEGY EVALUATION

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Managers desperately need to know when particular strategies are not working well;

(TRUE OR FALSE?)

TRUE

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All strategies are subject to __________ because external and internal factors are
constantly changing.

future
modification

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Three fundamental strategy- evaluation activities
RMT

(1) reviewing external and internal factors that are the
bases for current strategies
(2) measuring performance, and
(3) taking corrective actions.

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attempt both to duplicate what goes on in the mind of a brilliant, intuitive person who knows the business and to couple it with analysis.

Strategic-management process

useful for making decisions in situations of great uncertainty or little precedent.

INTUITION

helpful when highly interrelated variables exist or when it is necessary to choose from several plausible alternatives

INTUITION

Strategic management can be either ________ or _________

Prescriptive or Descriptive

means developing strategies in advance of an organizational issue.

PRESCRIPTIVE STATEGIC MANAGEMENT

best described as doing things “by the book”.

PRESCRIPTIVE APPROACH

means putting strategies into practice when needed

DESCRIPTIVE STRATEGIC MANAGEMENT

learning by experience.

DESCRIPTIVE APPROACH

PRESCRIPTIVE APPROACH AND DESCRIPTIVE APROACH The main difference between these two approaches to strategic management is the _______________

direction in which decisions flow.

With the prescriptive strategy, *leader make decisions* and expect employees to comply, while under the descriptive approach, *leaders seek input and feedback* from their subordinates. (TRUE OR FALSE?)

TRUE

Strategic management offers many benefits to companies that use it, including: CASCI

(1) COMPETITIVE ADVANTAGE (2) ACHIEVING GOALS (3) SUSTAINABLE GROWTH (4) COHESIVE ORGANIZATION (5) INCREASED MANAGERIAL AWARENESS

gives businesses an advantage over competitors because its proactive nature means your company will always be aware of the changing market.

COMPETITIVE ADVANTAGE

Strategic management helps keep goals achievable by using a clear and dynamic process for formulating steps and implementation.

ACHIEVING GOALS

Strategic management has been shown to lead to more efficient organizational performance, which leads to manageable growth.

SUSTAINABLE GROWTH

Strategic management necessitates communication and goal implementation company-wide. An organization that is working in unity towards a goal is more likely to achieve that goal.

COHESIVE ORGANIZATION

Strategic management means looking toward the company's future. If managers do this consistently, they will be more aware of industry trends and challenges. By implementing strategic planning and thinking, they will be better prepared to face future challenges.

INCREASED MANAGERIAL AWARENESS

To survive, all organizations must abstutely identify and adapt to change. (True or False?)

TRUE

is aimed at allowing organizations to adapt effectively to change over the long run.

strategic-management process

KEY STRATEGIC MANAGEMENT QUESTIONS

- What kind of business should we become? - Are we in the right field(s)? - Should we reshape our business? - What new competitors are entering our industry? - What strategies should we pursue? - How are our customers changing? - Are new technologies being developed that could put us out of business?

Anything that a firm does especially well compared to rival firms.

COMPETITIVE ADVANTAGE

Something that a firm can do that rival firms cannot do, or something that a firm own that rival firms desire.

COMPETITIVE ADVANTAGE

individuals who are most responsible for the success or failure of an organization.

STRATEGIST

vision statement answers the question

“What do we want to become?”

mission statements answers the question

“What is our business?”

refers to economic, social, cultural, demographic, environmental, political, legal, governmental,technological, and competitive trends and events that could significantly benefit or harm an organization in the future.

EXTERNAL OPPORTUNITIES AND THREATS

Organization's controllable activities that are performed especially well or poorly.

Internal Strengths and Weaknesses

Superiority or deficiency relative to competitors.

Internal Strengths and Weaknesses

specific results that an organization seeks to achieve in pursuing its basic mission

Long-Term Objectives

short term milestone that organizations must achieve to reach long-term objectives

Annual Objectives

potential actions that require top management decisions and large amount of the firm’s resources for achieving the objectives

STRATEGIES

includes guidelines, rules and procedures established to support efforts to achieve stated objectives.

POLICIES

Three Important Question to Answer in Developing a Strategic Plan

- Where are we now? - Where do we want to go? - How are we going to get there?

allows an organization to be more proactive than reactive in shaping its own future

STRATEGIC MANAGEMENT

It allow for identification, prioritization, and exploitation of opportunities (TRUE OR FALSE?)

TRUE

It allow for identification, prioritization, and exploitation of opportunities (TRUE OR FALSE?)

TRUE

a forward-looking declaration that defines what an organization aspires to become in the future

Vision Statement

It serves as a strategic guide for decision-making, employee motion, and stakeholder engagement.

VISION STATEMENT

Key Characteristics of a Good Vision Statement

- Inspiring & aspirational - Future-focused - Concise & memorable - Aligned with company values

Should motivate employees and stakeholders.

Inspiring & aspirational

Defines the long-term direction.

Future-focused

Ideally 10-20 words to ensure clarity

Concise & memorable

Reflects core beliefs and purpose.

Aligned with company values

How to Create a Vision Statement

Step 1: Define the Company’s Purpose Step 2: Envision the Future Step 3: Choose Effective Words Step 4: Refine & Finalize

Does it describe a long-term aspiration?

Future-Oriented

Does it excite and engage employees/stakeholders?

Inspirational

Is it easy to understand and remember?

Concise & Clear

Does it differentiate the company from competitors?

Unique

Does it reflect the company’s mission and purpose?

Aligned with Values

Can it evolve with industry trends?

Flexible & Adaptive

Why Does a Vision Statement Change?

● Industry Disruptions ● Market & Consumer Changes ● Expansion & Growth ● Crisis or Rebranding

New technologies and competitors require a shift in strategy

Industry Disruptions

Evolving customer needs may demand a new focus.

Market & Consumer Changes

When a company enters new markets or industries.

Expansion & Growth

After economic downturns, scandals, or leadership changes.

Crisis or Rebranding

define what the organization is and what the organization aspires to be

Mission Statement

be limited enough to exclude some ventures and broad enough to allow for creative growth;

Mission Statement

distinguish a given organization from all others

Mission Statement

A mission statement should: serve as a framework for evaluating both ______ and ________ activities

current and prospective

A mission statement should: be stated in terms _______ to be widely understood throughout the organization

sufficiently clear

Word length of mission statement

Less than 250 words in length

Mission statement should include ____ components

nine components

Mission statement should identify the ____ of a firm product

Utility

Mission statement should reveal the firm is s________

SOCIALLY RESPONSIBLE

Mission statement should reveal the firm is E________

ENVIRONMENTALLY RESPONSIBLE

Nine Essential Components of a Mission Statement

1. Customers 2. Products or services 3. Markets 4. Technology 5. Concern for survival, growth and profitability 6. Philosophy 7. Self-concept 8. Concern for public image 9. Concern for employees

Who are the firm’s customers?

CUSTOMERS

What are the firm’s major products or services?

PRODUCT OR SERVICES

Geographically, where does the firm compete?

MARKETS

Is the firm technology current?

TECHNOLOGY

is the firm committed to growth and financial soundness?

CONCERN FOR SURVIVAL, GROWTH, AND PROFITABILITY

What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

PHILOSOPHY

What is the firm’s distinctive competence or major competitive advantage?

SELF-CONCEPT

Is the firm responsive to social, community, and environmental concern?

CONCERN FOR PUBLIC IMAGE

Are employees a valuable asset of the firm?

CONCERN FOR EMPLOYEES

It reveals key opportunities and threats confronting an organization so that managers can formulate strategies

EXTERNAL AUDIT

Key External Forces

1. Economic Forces 2. Social, Cultural, Demographic and NaturalEnvironment Forces 3. Political, Governmental and Legal Forces 4. Technological Forces 5. Competitive Forces

advocates that external (industry) factors are more important than internal factors in a firm achieving competitive advantage.

INDUSTRIAL ORGANIZATION VIEW

avoiding weak or faltering industries, and gaining a full understanding of key external factor relationships within that attractive industry.

INDUSTRIAL ORGANIZATION VIEW

allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position.

COMPETITIVE PROFILE MATRIX