WEEK 3 - CONTINUATION 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
is particularly useful for making decisions in situations of great uncertainty or little precedent.
Intuition
is helpful when highly interrelated variables exist or when it is necessary to choose from several plausible alternatives.
Intuition
Strategic management can be either
Prescriptive or Descriptive.
means developing strategies in advance of an organizational issue.
Prescriptive Strategic Management
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 theory and practices.
Prescriptive Strategic Management
Descriptive Strategic Management
The descriptive approach is learning by
experience
leaders make decisions and expect employees to comply
prescriptive strategy
leaders seek input and feedback from their subordinates.
descriptive approach
Enumerate PURPOSE OF STRATEGIC MANAGEMENT
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. 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.
Adapting to Change
is aimed at allowing organizations to adapt effectively to change over the long run.
strategic-management process
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 owns that rival firms desire.
Competitive Advantage
individuals who are most responsible for the success or failure of an organization.
Strategist
They help the organization gather, analyze, and organize information.
Strategist
it answers the question “What do we want to become?”
vision statement
it answer 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 an 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
Where are we now?
Where do we want to go?
How are we going to get there?
allows 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
