Week 3 Flashcards
is an 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
Reasons for integrating intuition and analysis:
●Intuition is particularly useful for making decisions in
situations of great uncertainty or little precedent.
●Intuition is helpful when highly interrelated variable exist
or when it is necessary to chose from several plausible
alternatives.
Strategic management can be either
Prescriptive or
Descriptive.
means
d e v e l o p i n g s t r a t e g i e s i n a d v a n c e o f a n
organizational issue
Prescriptive Strategic Management
The prescriptive approach is best described as doing
things
“by the book”.
means putting
strategies into practice when needed. Both methods
of strategic management employ management
theory and practices.
Descriptive Strategic Management
The descriptive approach is learning by .
experience
• W i t h t h e p r e s c r i p t i v e
s t r a t e g y , l e a d e r s m a k e
decisions and expect employees
t o compl y, whi le und e r t h e
descriptive approach, leaders
seek input and feedback from
their subordinates.
The main difference between these
two approaches to s trategi c
management is the direction in
which decisions flow.
Strategic management 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 astutely identify and adapt to change. The
strategic-management process is aimed at allowing organizations to adapt
effectively to change over the long run.
Adapting to Change
Anything that a firm does especially well compared to rival firms. • Something that a firm can do that rival firms cannot do, or
something that a firm own that rival firms desire
Competitive Advantage
• T h e i n d i v i d u a l s w h o a r e m o s t
responsible for the success or failure of
an organization.
• They help the organization gather,
analyze, and organize information.
Strategist
answers the
question “What do we want to become?”
vision statement
answers the
question “What is our business?”
mission statements
- refers to economic, social, cultural,
demographic, environmental, political,
legal, governmental, technological, and
competitive trends and events that could
s i g n i f i c a n t l y b e n e fit o r h a r m a n
organization in the future.
External Opportunities and Threats
•Organization’s controllable activities that are
performed especially well or poorly.
•Su p e ri o ri t y o r d e f i c i e n c y r e l a t i v e t o
competitors.
Internal Strengths and Weaknesses
- specific result s 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
