Ch. 1 Basic Concepts Of Strategic Management

Front 1

Strategic Management

Back 1

(sometimes called business policy): a set of managerial decisions and actions that determines the long-run performance of a corporation.

Front 2

Phases of Strategic Management

Back 2

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

Front 3

Benefits of Strategic Management

Back 3

-Clearer sense of strategic vision for the firm
-Sharper focus on what is strategically important
-Improved understanding of a rapidly changing environment

Front 4

Globalization

Back 4

the integration and internationalization of markets and corporations.

Front 5

Environmental Sustainability

Back 5

the use of business practices to reduce a company’s impact on the natural, physical environment.

Front 6

Strategic flexibility

Back 6

the ability to shift from one dominant strategy to another;

it requires: Long-term commitment to the development and nurturing of critical resources

Front 7

Learning organization

Back 7

an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.

Front 8

Basic Elements of Strategic Management

Back 8

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)

Front 9

Environmental Scanning

Back 9

is the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the organization.

Front 10

Strategy Formulation

Back 10

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.)

Front 11

Mission

Back 11

the purpose or reason for the organization’s existence

Front 12

Vision

Back 12

describes what the organization would like to become (more philosophical and future-oriented than mission)

Front 13

Objectives

Back 13

the end results of planned activity (concrete, defined)

Front 14

Strategies

Back 14

form a comprehensive master plan that states how the corporation will achieve its mission and objectives

Front 15

Policies

Back 15

the broad guidelines for decision making that links the formulation of a strategy with its implementation

Front 16

Strategy implementation

Back 16

the process by which strategies and policies are put into action through the development of

Front 17

Evaluation and control

Back 17

the process in which corporate activities and performance results are monitored, so that actual performance can be compared to desired performance

Front 18

Performance

Back 18

the end result of organizational activities

Front 19

Feedback/Learning Process

Back 19

revise or correct decisions based on performance

Front 20

Strategic decision making

Back 20

focuses on the long-run future of the organization