Week 3 Flashcards
process 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
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.
Intuition
means developing strategies in advance of an organizational issue.
Prescriptive Strategic Management
The ________________ is best described as doing
things “by the book”.
prescriptive approach
The prescriptive approach is best described as doing
things “_____________”.
by the book
means putting strategies into practice when needed.
Descriptive Strategic Management
Both methods of strategic management employ management _______ and __________.
theory and practices
The ________________ is learning by experience.
The descriptive approach is learning by ___________.
experience
The main difference between these two approaches to strategic
management is the direction in
which decisions flow.
leaders make decisions and expect employees to comply, while under the descriptive approach, leaders
seek input and feedback from
their subordinates.
prescriptive strategy
Strategic management offers many benefits to companies that use it, including:
- COMPETITIVE ADVANTAGE
- ACHIEVING GOALS
- SUSTAINABLE GROWTH
- COHESIVE ORGANIZATION
- INCREASED MANAGERIAL AWARENESS
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.
COHESIVE ORGANIZATION
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.
INCREASED MANAGERIAL AWARENESS
If managers do this consistently, they will be more aware of industry trends and challenges.
INCREASED MANAGERIAL AWARENESS
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.
Adapting to Change
The strategic-management process is aimed at allowing organizations to adapt effectively to change over the long run.
Adapting to Change
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
A firm must strive to achieve a sustained competitive advantage
by:
- Continually adapting to changes in external trends and events
and internal capabilities, competencies, and resources; and - effectively formulating, implementing, and evaluating strategies
that capitalize upon those factors.
The individuals who are most responsible for the success or failure of an organization.
Strategist
*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 significantly benefit or harm
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
ØWhere are we now?
ØWhere do we want to go?
ØHow are we going to get there?
al lows an organization to be more proactive than reactive in shaping its own future; it allows
an organization to initiate and influence (rather than just respond to) activities – and thus to exert control over its own destiny.
Strategic Management
A. Dialogue
B. Participation
Enhanced communication
A. Of other’s views
B. Of what the firm is doing/planning and why
Deeper/Improved Understanding of
A. TO achieve objectives
B. To implement strategies
c. TO work hard
Greater Commitment
All managers and employees on a mission to help the firm succeed
The result
ØDelegating planning to a “planner” rather than involving all
managers.
Pitfalls in Strategic Planning
ØFailing to involve key employees in all phases of planning.
Pitfalls in Strategic Planning
ØFailing to create a collaborative climate supportive of change.
Pitfalls in Strategic Planning
ØViewing planning as unnecessary or unimportant.
Pitfalls in Strategic Planning
ØBecoming so engrossed in current problems that insufficient or no planning is done.
Pitfalls in Strategic Planning
ØBeing so formal in planning that flexibility and creativity are stifled.
Pitfalls in Strategic Planning
