Organizational Management Review

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Chapter 1: Basic Concepts
* Strategic Management: set of managerial decisions and actions that determine the long-run performance of a corporation. * Phases of Strategic Management:
* Phase 1: Basic financial planning
* Phase 2: Forecast-based planning
* Phase 3: Externally oriented planning
* Phase 4: Strategic Management
* Benefits of Strategic Management:
* Clearer sense of strategic vision for the firm
* Sharper focus on what is strategically important
* Improved understanding of a rapidly changing environment * Globalization: integrated internationalization of markets and corporations * Environmental Sustainability: the use of business practices to reduce a company’s impact upon the natural, physical environment. * The effects of climate change on industries and companies: *

* Regulatory Risk
* Supply Chain Risk
* Product and Test Technology Risk
* Litigation Risk
* Reputation Risk
* Physical Risk
* Theories of organizational adaption:
* Population Ecology: proposes that once an organization is successfully established in a particular environmental niche, unable to adapt to changing conditions. * Institution Theory: proposes that organizations can adapt to changing conditions by imitating other successful organizations. * Strategic Choice Perspective: proposes that not only do organizations adapt to a changing environment, but they also have the opportunity and power to reshape their environment. * Organizational Learning Theory: says that an organization adjusts defensively to a changing environment and uses knowledge offensively to improve the fit between itself and its environment. * Learning Organization: an organization that is skilled at creating, acquiring, and transferring knowledge and modifying its behavior to reflect new knowledge and insights * Basic Model of Strategic Management:

* Environmental Scanning
* Strategy Formulation
* Strategy Implementation
* Evaluation and control
* Environmental Scanning: monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. * SWOT: Strengths, Weaknesses, Opportunities, and Threats. * External Environment: consists of variables (Opportunities and Threats) that are outside the organization and not typically within the short-run control of top management. * Strategy Formulation: development of long-range plans for the effective management of environmental opportunities and threats. * Mission: purpose or reason for the organization’s existence. * Vision: describes what the organization would like to become. * Narrow Mission Statement: generally more useful; very clearly states the organization’s primary business. * Objectives: end results of a planned activity.

* Strategy: corporation forms a comprehensive master plan that states how the corporation will achieve its mission and objective. Types of Strategy:
* Corporate Strategy
* Business Strategy
* Functional Strategy
* Policy: broad guideline for decision making that links the formulation of a strategy with its implementation. * Strategy Implementation: process by which strategies and policies are put into action through the development f programs, budgets, and procedures. * Program: statement of the activities or steps needed to accomplish a single-use plan. * To cut costs, management decided to implement a series of programs: * Outsource

* Reduce final assembly line
* Use new, lightweight composite materials
* Resolve poor relations with labor unions
* Budget: statement of a corporation’s programs in terms of dollars. * Procedures (SOP): Standard Operating Procedures’ are a system of sequential steps or techniques that describe in detail how a particular task...
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