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12 Cards in this Set
- Front
- Back
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Stages of Strategic Management |
Strategy FormulationStrategy ImplementationStrategy Evaluation |
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1. Strategy-formulation |
It includes developing a vision and a mission, identifying an organization's: 1. external and internal factors;2. establishing long-term objectives3. generating alternative strategies; and4. choosing particular strategies to pursue. |
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2. Strategy Implementation |
It requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. Strategy implementation includes:1. developing a strategy-supportive culture;2. creating an effective organizational structure;3. redirecting marketing efforts and preparing budgets;4. developing and using information systems; and5. linking employee compensation to organizational performance. |
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3. Strategy Evaluation |
This is a process by which the management assesses how well a chosen strategy has been implemented and how successful or otherwise the strategy is. (E.g. KPIs, Matrix, Objectives) Three fundamental strategy-evaluation activities are:1. reviewing external and internal factors based on the currentstrategies2. measuring performance; and3. taking corrective actions. |
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Business Model Canvas |
Key Partners Distributors-Key Activities Marketing-Key Resources-Value Proposition-Customer Relationships-Channels Distributor-Customer Segments (Primary Market, Secondary Market) -Revenue Streams-Cost Structure |
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Benefits in Engaging in Strategic Management 1. Financial Benefits 2. Non-Financial Benefits |
1. Financial Benefits: Organizations that use strategic- management concepts are generally more profitable and successful than those that do not. 2. Non-Financial Benefits: Besides helping firms avoid financial demise, strategic management offers other tangible benefits, such as enhanced awareness of external threats, improved understanding of competitors' strategies, increased employee productivity, reduced resistance to change, and a clearer understanding of performance-reward relationships. |
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Benefits to a Firm That Does Strategic |
Planning Deeper/improved Understanding Greater Commitment |
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-Deeper/improved Understanding |
a. Of others' viewsb. Of what the firm is doing/planning and why |
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Planning |
-Enhanced Communicationa.Dialogueb. Participation |
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Deeper/improved Understanding |
a. Of others' viewsb. Of what the firm is doing/planning and why |
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Greater Commitment |
a. To achieve objectivesb. To implement strategiesc. To work hard |
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Why Some Firms Do "No Strategic Planning |
1. No formal training in strategic management2. No understanding of or appreciation for the benefits of planning3. No monetary rewards for doing planning4. No punishment for not planning5. Too busy "firefighting" (resolving internal crises) to plan ahead6. View planning as a waste of time, since no product/service is made7. Laziness; effective planning takes time and effort; time is money8. Content with current success; failure to realize that success today is no guarantee for success tomorrow.9. Overconfident10. Prior bad experience with strategic planning done sometime or somewhere |
