Strategic Management Flashcards
What is strategic management?
the pyramid
TOP: Strategic
MID: Operational
BOT: Tactical
What is strategic management?
building blocks
- Vision
- Mision
- Goal
- Strategy
- Action Plan
Strategy: Three Horizon Approach
Horizon 1 : Grow and defend core business
Horizon 2: Build revenue
Horizon 3: Create viable options - new offerings and approaches
What we must align to achieve our aim of being a High-Performance Organisation?
Intersecting circles:
Strategy,
Organizational design,
Culture
Perspectives of Strategy:
what is the Financial Perspective?
“If we succeed, how will we look to our shareholders?”
Perspectives of Strategy:
From Knowledge and People?
“To achieve our vision, how must our organization learn and improve?”
Financial
Perspectives of Strategy:
what is the Internal Perspective
“To satisfy our clients, at which processes must we excel?”
Perspectives of Strategy:
what is the Client Perspective
“To achieve our vision, how must we look to our clients?”
Old vs New Model?
OLD:
Sell more work -> Hire more people -> Bill more hours
NEW:
Find out what your Clients REALLY want -> Add more VALUE -> Leverage your hours
Company Organization:
Types of businesses?
- Sole proprietor
- Partnership
- Closed Corporation
- Private company
- Public company
- State-Owned Company (SOC)
- Trust
Company Organization:
Grouping of Departments/functions?
- The span of control & company growth
- Pattern of communication
- Typically
• Design/Construction operations
• Marketing • Admin/Financial control
• Training and CPD
• Corporate social responsibility
Responsibilities:
What is the function of a Manager?
- Ensure that available resources are used in the best way to produce profits
- Environmental, social, ethical and legal aspects need to be taken into account
- Company policies
• General statements to guide
decision-making and strategic
planning towards the objectives - Company objectives
• Kind of business
• Kind of goods & services
• Desired market share
• Development of know-how
• Possible changes in the market - Company strategy
• How the objectives will be reached
• Determines the scope, scale &
structure of the company
Responsibilities:
Management attitude?
- Opportunities for promotion
- Personnel (manager) development
- Motivation, respect & company morale
Financial Management:
what are Capital sources of businesses?
- Retained profits
- Loans (financial institutions)
- Bonds Shares
- Other Financial instruments
• Derivatives, futures & hedge funds - Cash from Creditors
- Provision for Tax
Financial Management:
What are long and short term finance?
Short term finance
• Overdraft
• Short term loan
• Cash from Creditors
• Hire purchase agreement
• Provision for Tax
Long term finance
• Retained profits
• Shares
• Long term loan
• Bonds
• Market instruments
• Project finance
