Topic 1: Introduction to Strategic Management

Question 1

What is vision?

Answer 1

What the business wants to be, the bigger picture, the end game. A short and succinct statement that identifies the long-term strategic purpose of the organization

Question 2

What is mission?

Answer 2

Articulates the fundamental purpose of the organization. In short, it shows how the business will achieve its vision

Question 3

What is strategy?

Answer 3

The adoption of courses of action and the allocation of resources to achieve long-term goals and objectives.

Question 4

How is strategy developed? (6 steps)

Answer 4

1. Information gathering
2. Information analysis
3. Strategy formulation
4. Decision making
5. Implementing
6. Monitoring

Question 5

What is Mintzberg’s 5 Ps of strategy

Answer 5

1. A plan
2. A ploy
3. A pattern of behaviour
4. A position in respect to others
5. A perspective