Strategic Managment
Chapter 1
What is Strategic Management? - A process for situation analysis and strategy formulation, implementation and evaluation.
Using an example, explain the strategic management process. – A process is a series of interrelated and continuous steps leading to an outcome. * Situational Analysis- Required before deciding upon a strategic direction it involves scanning and evaluating. * Strategy Formulation- developing and choosing appropriate strategies(guided by the analysis) and incudes 3 main types of strategies * Functional- or operational strategies are goal oriented plans and actions of the functional areas of the organization. * Competitive- or business strategies are goal directed plans and actions concerned with how an organization competes in a specific business or industry * Corporate- goal directed plans and actions concerned with what business or businesses a firm wants to be in and what to do with those businesses * Strategy Implementation- it is not enough to formulate great strategies, they must also be put into action * Strategy Evaluation- involves evaluating the outcomes of the strategies and how they have been implemented
Who is involved with Strategic Management? Explain their roles in the process. * The board of Directors- Legal obligation to protect the shareholders through corporate governance. * Review and approve strategic goals and plans. * Review and approve an organizations financial standards * Ensure the integrity of the organizations financial controls * Monitor performance and review the results * Top Management- Responsible for every decision and outcome, top management plays a most significant role in the strategic management process * Consists of CEO, COO, CFO and CIO * Determine the organizations purpose * Exploit and maintain core competencies * Develop human capital * Emphasize ethical decisions and practices *
What is Strategic Management? - A process for situation analysis and strategy formulation, implementation and evaluation.
Using an example, explain the strategic management process. – A process is a series of interrelated and continuous steps leading to an outcome. * Situational Analysis- Required before deciding upon a strategic direction it involves scanning and evaluating. * Strategy Formulation- developing and choosing appropriate strategies(guided by the analysis) and incudes 3 main types of strategies * Functional- or operational strategies are goal oriented plans and actions of the functional areas of the organization. * Competitive- or business strategies are goal directed plans and actions concerned with how an organization competes in a specific business or industry * Corporate- goal directed plans and actions concerned with what business or businesses a firm wants to be in and what to do with those businesses * Strategy Implementation- it is not enough to formulate great strategies, they must also be put into action * Strategy Evaluation- involves evaluating the outcomes of the strategies and how they have been implemented
Who is involved with Strategic Management? Explain their roles in the process. * The board of Directors- Legal obligation to protect the shareholders through corporate governance. * Review and approve strategic goals and plans. * Review and approve an organizations financial standards * Ensure the integrity of the organizations financial controls * Monitor performance and review the results * Top Management- Responsible for every decision and outcome, top management plays a most significant role in the strategic management process * Consists of CEO, COO, CFO and CIO * Determine the organizations purpose * Exploit and maintain core competencies * Develop human capital * Emphasize ethical decisions and practices *