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20 Cards in this Set
- Front
- Back
Strategic Management |
Set of managerial decisions and actions that determine the long-term performance of a corporation |
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Phases of strategic management |
-Basic Financial Planning |
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Basic Financial Planning |
In this phase, managers initiate serious planning when requested to propose the following year's budget. |
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Forecast Based Planning |
In this phase, managers attempt to propose five-year plans and consider projects that may take more than one year. |
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Externally Oriented (Strategic) Planning |
In this phase, planning is taken out of the hands of lower level managers. Top management takes control of planning by initiating strategic planning in an attempt to increase its responsiveness to market change & competition by thinking strategically |
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Strategic Management |
In this phase, top management forms planning groups of managers and key employees at many levels, from various departments and workgroups. |
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Benefits of Strategic Planning |
-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 integrated internalization of markets and corporations |
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Impact of globalization |
As more industries become global, strategic management is becoming an increasingly importantway to keep track of international developments and position a company for long-termcompetitive advantage. |
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Environmental Sustainability |
The use of business practices to reduce a company’s impactupon the natural, physical environment.
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Basic Model of Strategic Management |
-Environmental scanning -Strategy formulation -Strategy implementation -Evaluation and control |
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Basic Elements ofthe StrategicManagementProcess |
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Strategic Management Model (Extended) |
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Environmental Scanning |
The monitoring, evaluating, and disseminating of informationfrom the external and internal environments to key people within the corporation. The simplest way to conduct environmental scanning is throughSWOT analysis. |
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SWOT Analysis |
-An acronym used to describe the particular Strengths,Weaknesses,Opportunities, and Threats that are strategic factors for a specific company. -The external environmentconsists of variables (Opportunities and Threats) that are outside the organization. -The internal environment of a corporation consists of variables (Strengths andWeaknesses) that are within the organization itself. |
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Strategy Formulation |
The development of long-range plans for the effective managementof environmental opportunities and threats, in light of corporate strengths and weaknesses(SWOT). It includes defining the corporate mission, specifying achievable objectives, developingstrategies, and setting policy guidelines. |
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Mission |
Mission |
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Vision |
Vision |
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Effect of climate change: six categories of risk |
-Regulatory Risk -Supply chain risk -Product and technology risk -Litigation risk -Reputational risk -Physical Risk |
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Regulatory risk |
Government policies in place to prevent company activities that cause pollution by companies |