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45 Cards in this Set
- Front
- Back
Strategic Management is an art and science of blanks, cross-functional decisions that enable an organization to achieve its objectives |
Formulating Implementing Evaluating |
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In essence, the strategic plan is the company's blank |
Game plan |
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3 Stages of the Strategic Management Process |
Strategic Formulation Strategic Implementation Strategic Evaluation |
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Strategy Formulation |
1. Vision and Mission 2. External Opportunities and Threats 3. Internal Strengths and Weaknesses 4. Long-term Objectives 5. Alternative Strategies 6. Strategy Selection |
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Logical plan to meet the company's objectives |
Formulation |
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Putting the plan into action |
Implementation |
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To know which part of the operation to improve |
Evaluation |
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Assessment of oerformance |
Evaluation |
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Deviation between the standard and actual value |
Evaluation |
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Decisions of different departments should be aligned together in meeting the company's objectives |
Cross functional decisions |
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Long term perspective |
Strategy |
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Short term perspective Maneuvering On the spot |
Tactics |
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What do we want to become |
Vision |
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Speaks of a purpose of an organization |
Mission |
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The company's values and priorities |
Long term objectives |
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A lot of alternative sources of actions |
Alternative selections |
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Beyond the operation of the business |
External |
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Issues in Strategy Formulation |
*Business to enter *Business to abandon *Allocation of resources *Expansion or diversification *International markets *Mergers or joint ventures *Avoidance of hostile takeover |
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Offer more products and services |
Diversification |
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Be able to compete globally |
International Markets |
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Combine forces to survive |
Mergers or joint ventures |
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Results from tough managerial choices among numerous good alternatives and it signals commitment to specific markets, policies, procedures, and operstions in lieu of other less desirable courses of actions |
Strategic plan |
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Strategy Implementation |
1. Establish annual objectives 2. Devise policies 3. Motivate employees 4. Allocation of resources |
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Includes developing a strategy supportive culture |
Strategy implementation |
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Redirecting marketing efforts and preparing budgets |
Strategy implementation |
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Development and utilization of information systems |
Strategic implementation |
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Linking employee compensation to organizational performance |
Strategy implementation |
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Mobilizing employees and managers to put formulated strategies into action |
Implementing strategy |
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Requires personal discipline, commitment and sacrifice |
Implementing strategy |
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Stimulate managers and employees throughout an organization to work with pride and enthusiasm towards achieving stated objectives |
Implementation |
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Review external and internal factors that are the bases for current strategies |
Strategy evaluation |
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Measuring performance and taking corrective action |
Strategy evaluation |
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Managers must need to know when particular strategies are not working well |
Strategy evaluation |
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3 Hierarchical levels |
Corporate Divisional or strategic business unit Functional |
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Described as an objective, logical, systematic approach for making major decisions in an organization |
Strategic Management Process |
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Useful for making decisions in situations of great uncertainty or little precedent |
Intuition |
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Based on the belief that organization should continually monitor internal and external events and trends so that timely changes can be made as needed |
Strategic management process |
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Successful organizations effectively manage change, continuously adapting their bureaucracy, strategies, systens, products and cultures to survive the shocks and prosperous from the forces that decimate the competition |
True |
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Anything that a firm does especially well compared to rival firms |
Competitive Advantage |
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Continually adapting to changes 8n external trends and events and internal capabilities, competencies and resources |
Sustainable competitive advantage |
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Individuals who are most responsible for the success or failure of an organization |
Strategist |
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Develop forecasting models and scenarios |
Strategist |
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Evaluate corporate and divisional performance and spot emerging market opportunities |
Strategist |
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Identify threats and develop creative action plans |
Strategist |
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Any manager who has the responsibility for a unit, profit and loss outcome, direct authority over a major piece of the business |
Strategist |