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20 Cards in this Set
- Front
- Back
Strategic Management
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(sometimes called business policy): a set of managerial decisions and actions that determines the long-run performance of a corporation.
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Phases of Strategic Management
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Phase 1: Basic financial planning (1 year, little analysis)
Phase 2: Forecast-based planning (3-5 years) Phase 3: Externally oriented (strategic) planning Top-down formal strategy formulation, reflect changing markets and competition. Phase 4: Strategic management |
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Benefits of Strategic Management
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-Clearer sense of strategic vision for the firm
-Sharper focus on what is strategically important -Improved understanding of a rapidly changing environment |
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Globalization
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the integration and internationalization of markets and corporations.
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Environmental Sustainability
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the use of business practices to reduce a company’s impact on the natural, physical environment.
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Strategic flexibility
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the ability to shift from one dominant strategy to another;
it requires: Long-term commitment to the development and nurturing of critical resources |
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Learning organization
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an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.
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Basic Elements of Strategic Management
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1. Environmental scanning (internal & external analysis)
2. Strategy formulation (mission, objectives, strategies, policies). What we do. 3. Strategy implementation (programs, budgets, procedures). How we do it. 4. Evaluation and control (e.g., financial outcomes) |
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Environmental Scanning
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is the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the organization.
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Strategy Formulation
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the development of long-range plans for the effective management of environmental opportunities and threats in light of organizational strengths and weaknesses. (Derived directly from SWOT analysis.)
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Mission
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the purpose or reason for the organization’s existence
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Vision
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describes what the organization would like to become (more philosophical and future-oriented than mission)
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Objectives
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the end results of planned activity (concrete, defined)
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Strategies
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form a comprehensive master plan that states how the corporation will achieve its mission and objectives
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Policies
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the broad guidelines for decision making that links the formulation of a strategy with its implementation
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Strategy implementation
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the process by which strategies and policies are put into action through the development of
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Evaluation and control
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the process in which corporate activities and performance results are monitored, so that actual performance can be compared to desired performance
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Performance
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the end result of organizational activities
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Feedback/Learning Process
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revise or correct decisions based on performance
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Strategic decision making
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focuses on the long-run future of the organization
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