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Chapter 1
  • Monica Delos Santos

  • 問題数 30 • 9/3/2024

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  • 1

    Carefully designed or planned to serve a particular purpose or advantage

    strategic

  • 2

    It is a clear set of plans, actions and goals that outlines how a business will compete in a particular market, or markets, with a product or number of products or services.

    strategic in business

  • 3

    Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives

    strategic management

  • 4

    is a company’s game plan

    strategic plan

  • 5

    3 Stages of the Strategic Management Process

    strategy formulation, implementation, evaluation

  • 6

    strategy formulation

    Vision & Mission External Opportunities & Threats Internal Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection

  • 7

    Strategy Implementation

    Annual Objectives Policies Employee Motivation Resource Allocation

  • 8

    Strategy Evaluation

    Internal Review External Review Performance Measurement Corrective Action

  • 9

    Key Terms in Strategic Management

    Competitive advantage Strategists Vision and mission statements External opportunities and threats Internal strengths and weaknesses Long-term objectives Strategies Annual objectives Policies

  • 10

    Anything that a firm does especially well compared to rival firms

    competitive advantage

  • 11

    Strategists

    Gather Information Analyze Information Organize Information

  • 12

    What do we want to become?

    vision statement

  • 13

    What is our business? What is our purpose? What makes us different from others?

    mission statement

  • 14

    External Opportunities and Threats • Analysis of Trends

    • Economic • Social • Cultural • Demographic/Environmental • Political, Legal, Governmental • Technological • Competitors

  • 15

    Basic Tenet of Strategic Management External Opportunities and Threats Strategy Formulation

    take advantage of external opportunities avoid/minimize impact of external threats

  • 16

    Controllable activities performed especially well or poorly • Determined relative to competitors

    internal stregths and weaknesses

  • 17

    Internal Strengths and Weaknesses • Typically located in functional areas of the firm

    • Management • Marketing • Finance/Accounting • Production/Operations • Research & Development • Management Information Systems

  • 18

    Assessing the Internal Environment Internal Factors

    Financial Ratios Performance Measures Industry Averages Survey Data

  • 19

    Specific results that an organization seeks to achieve in pursuing its basic mission • Long-term means more than one year

    long-term objectives

  • 20

    Long term objectives Essential for ensuring the firm’s success

    Provide direction Aid in evaluation Create synergy Reveal priorities Focus coordination Provide basis for planning, organizing, motivating, and controlling

  • 21

    Means by which long- term objectives are achieved

    strategies

  • 22

    example of strategies

    • Geographic expansion • Diversification • Acquisition • Product development • Market penetration • Retrenchment • Divestiture • Liquidation • Joint venture

  • 23

    Short-term milestones that firms must achieve to reach long-term objectives

    annual objectives

  • 24

    Means by which annual objectives will be achieved

    policies

  • 25

    Dynamic & continuous • More formal in larger organizations

    strategic management process

  • 26

    is a key to successful strategic management

    communication

  • 27

    Nonfinancial benefits of strategic management

    ❑ Enhanced awareness of threats ❑ Improved understanding of competitors’ strategies ❑ Increased employee productivity ❑ Reduced resistance to change ❑ Clearer understanding of performance-reward relationship ❑ Enhanced problem-prevention capabilities

  • 28

    Why Some Firms Do No Strategic Planning

    ◼Lack of knowledge of strategic planning ◼ Poor reward structures ◼ Waste of time ◼ Too expensive ◼ Laziness ◼ Content with success ◼ Fear of failure ◼ Overconfidence ◼ Prior bad experience ◼ Self-interest ◼ Fear of the unknown ◼ Honest difference of opinion ◼ Suspicion

  • 29

    Pitfalls in Strategic Planning

    -using strategic planning to gain control over decisions -only to satisfy accreditation or regulatory req -delegating planning to "planner" rather than involving all managers -failing to involve key employees in all phases of planning -viewing planning as unnecessary or unimportant

  • 30

    Guidelines for Effective Strategic Planning

    -should be a people process more than a paper process -be a learning process for all managers and employees -should be words supported by numbers rather than number supported by words -should be simple and nonroutine -should vary assignments, team memberships, etc