Strategic Management Flashcards
Strategic management
What manager do to develop the organization strategies
Strategy
Decisions and actions that determine the long run performance of the organization
Business model
How a company is going to make the money
Focuses of the business model
- Will value what the company is provading
2. the company can make qny money doing that
Importance of the strategic management
- It can make a differreence in how well an organization performs
- manager face continually changing situatuons
- Org. Are complex and diverse
Strategic management process
Is a six step process that encompasses strategy planning, implementation, and evaluation
Steps of strategic management process
Identify the organiazation’s current mission, doing an external analysis, doing an internal analysis, formulating strategies, implementing strategies, evaluating resoults
Corporate strategy
Is one termines what businesses a company is in or wants to be in, and what to do with those businesses
Mission
Purpose, why do you exis
Opportunities
Positive trends in the external enfironment
Threats
Negative trends in the external environment
Components of a mission statement
Stakeholders. markets. concern for survival, growth and avieveing goals. Philosophy. Concer for public image. Products or services. Technology. Self-concept. Concern for employee. Making simple and clear and understandanle
Types of corporate strategy
Growth, stability, renewal
Resources
An organization assets are used to develop, manufacture and deliver product to its customer
Capabilities
An organization skills and abilities in doing the work activities needed its business
Core competenceies
The organization value creating capabilities that determine its competitive weapons
Strengths
Any activities the organization, does well or any unique resources that has
Weaknesses
Activities the organization, does not do well or resources it needs but does not posses
Swot analysis
An analysis of the organization’s strengths, weaknesses, opportunities, and threats
Corporate strategy: growth
When an organization expands the number of markets served or products offered
Corporative strategy: type stability
A corporate strategy in which an organization continues to do what it is currently doing
Corporative strategy: type renewal
Retrenchment: a short-run renewal strategy used for minor performance problems.
Turnaround: when an organization problems are more serious, more drastic actions
Related diversification
A company combines with other companies in different, but related, industries
Unrelated diversification
A company combines with firms in different and unrelated industries
