Strategic management
Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization …
What are the components of strategic management process?
Strategic Management Process - Meaning, Steps and Components. Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and managing human resources. Strategy Evaluation- Strategy evaluation is the final step of strategy management process.
What is the definition of Strategic Management?
Strategic management is broadly concerned with how an organization's leaders create and implement goals. The process of strategic management involves considering how resources such as money, personnel and time impact the environment in which the organization operates.
What is the first step in the strategic management process?
The first step in the strategic management process is environmental scanning, sometimes referred to as simply “scanning.” Basically, this is a process of quickly reviewing and processing anything that might have an impact on your business and how it operates. Factors both inside and outside the company can influence a business.
What are the MCQ questions for Strategic Management?
Strategic Management MCQ: Multiple Choice Questions and Answers on Strategic Management. 1 1. The fundamental purpose for the existence of any organization is described by its. 2 a. policies. ADVERTISEMENTS: 3 b. mission. 4 c. procedures. 5 d. strategy. Ans. b. More items
What are the components of the strategic management process?
The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan.
What are the 3 components of strategic management?
Strategic management has three major elements, which include strategic analysis, strategic choice, and strategy implementation.
Which of the following is one among the six components of the strategic management process?
Read ahead to learn more about the six vital elements of strategic planning: vision, mission, objectives, strategy, approach, and tactics.
Which of the following are important components of strategic management?
Strategic management comprises the following components:Goal Setting. ... Strategy Formulation. ... Strategy Implementation. ... Strategy Evaluation. ... The Start. ... Analyzing. ... Forming the Strategy. ... Implement the Strategy.More items...
What are the 5 strategic management process?
The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.
What are the 4 basic model of strategic management?
The four phases of strategic management are formulation, implementation, evaluation and modification.
What is the strategic management process?
What is strategic management? Strategic management is the process of setting goals, procedures, and objectives in order to make a company or organization more competitive. Typically, strategic management looks at effectively deploying staff and resources to achieve these goals.
What are the 6 steps in the strategic planning process?
6 Strategic Planning Steps To FollowConfirm (or create) your mission and vision statements. Mission and vision statements provide important context for your future plans. ... Choose a framework. ... Identify your priorities. ... Develop measures and initiatives. ... Build a rollout plan. ... Review and make changes.
What are the six 6 strategic management process?
The strategic management process is a six-step process that encompasses (covers) strategic planning, implementation, and evaluation. Although the first four steps describe the planning that must take place, implementation and evaluation are just as important.
What is considered the most important activity of the strategic management process?
Implement Your Strategy Successful strategy implementation is critical to the success of the business venture. This is the action stage of the strategic management process.
Which of the following is often considered to be the first step in strategic planning?
The answer here is Option "A", Developing a vision statement.
Which of the following best defines strategic management?
Which of the following best describes strategic management? Strategic management is a task that managers perform to develop the company's strategies.
What is the starting point of the strategic management process?
The starting point of the process is initial assessment of the firm. At this phase managers must clearly identify the company's vision and mission statements.
What is strategic management?
Strategic management is the process of employing that kind of large-scale, objective-oriented approach through the use of three major components: environmental scanning, ...
Why is strategy evaluation important?
The strategy evaluation process is crucial in strategic management . This is how managers and businesses learn what’s working and what still needs to be adjusted to achieve the best possible results.
What are the factors that influence a company?
Factors both inside and outside the company can influence a business. Managers are usually familiar with what’s going on inside their companies, so internal factors may be more obvious initially. For example, if your company is experiencing an unusually high rate of employee turnover, it's an issue management needs to address. Other kinds of internal factors include sales numbers, productivity rates and profit margins.
What is SWOT analysis?
A SWOT analysis helps give a company a more accurate snapshot of where it fits into the industry and the economy as a whole and identifies steps it can take to grow and improve its financial health.
How should a company communicate its plans?
At a minimum, the company should communicate its plans through the appropriate corporate channels. Today’s technology makes it much easier for busy companies to keep external stakeholders informed. Blogs, email newsletters and social media mean it’s easier than ever before to communicate clearly with key constituencies.
Is smart strategy sufficient?
Implementing a smart strategy isn’t sufficient by itself to meet goals. Once the company’s employees are carrying out the planned actions, the company must also periodically assess the results of those actions.
What is strategic management?
Strategic management is the formulation and implementation of major objectives and projects, by an organization’s management on behalf of its shareholders (or owners). Shareholder A shareholder can be a person, company, or organization that holds stock (s) in a given company. A shareholder must own a minimum of one share in a company’s stock ...
What is management theory?
Management Theories Management theories are concepts surrounding recommended management strategies, which may include tools such as frameworks and guidelines that can be implemented in modern organizations. Generally, professionals will not rely solely on one management theory alone
What is budgeting in business?
Budgeting Budgeting is the tactical implementation of a business plan. To achieve the goals in a business’s strategic plan, we need some type of budget that finances the business plan and sets measures and indicators of performance. process.
Why is it important to align activities?
According to Porter, aligning activities can improve the operational efficiency of an organization and ultimately create a competitive advantage for it.
What is the competitive advantage of a company?
Competitive Advantage A competitive advantage is an attribute that enables a company to outperform its competitors. It allows a company to achieve superior margins. the company has over its competitors. #2.
What is the competitive force model?
The Competitive Forces Model (Porters 5 Forces)#N#Competitive Forces Model The competitive forces model is an important tool used in strategic analysis to analyze the competitiveness in an industry. This model is more commonly#N#is a framework used to assess the competitiveness of the industry.
What is organizational analysis?
Organizational Analysis Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity.
What is strategic management?
Strategic management is broadly concerned with how an organization's leaders create and implement goals. The process of strategic management involves considering how resources such as money, personnel and time impact the environment in which the organization operates. There are four key elements of the strategic management process: environmental ...
What is strategic implementation?
This is called strategic implementation and it is all about creating specific action plans for how the strategies will be achieved.
Why is evaluation important in strategic management?
Evaluation is an ongoing part of the strategic management process because it allows the company's leaders to quantitatively and qualitatively evaluate the impact the new strategy has had on both day-to-day work flows and on the company's broader strategic direction. In some cases it may even be necessary for an organization to rethink its strategy ...
What chapter is Strategic Management Process?
Start studying Chapter 1 - The Strategic Management Process. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
What is the general idea of strategy?
the general idea is that strategies should be formulated to take advantage of internal strengths and opportunities arising from the external environment, to overcome internal weaknesses, or to neutralize threats found in the external environment
What is interactional in business?
3. interactional - fairness in the way stakeholders are treated during transactions (trustworthy in day to day actions)
What is an organization?
organization is a network of relationships with stakeholders- internal and external constituencies that have a strong interest in the activities and outcomes of the firm and upon whom the organization relies to achieve its objective s
What is good management?
suggests that good management is associated with determining which strategy will best fit environmental, technical and human forces at a particular point in time and then working to carry it out
Is industry a determinant of performance?
suggests industry is important to performance, but not primary determinant of performance
What is a turn in strategy?
a. Turning corporate-level strategy into action
What is the definition of a supervisor?
a. They oversee the operation of an entire company or division.
What is a manager's plan based on?
managers formulate plans that are based on "what-if" scenarios that are about the future.
How to maintain tight control over as many decisions as possible?
maintain tight control over as many decisions as possible by demanding complete obedience.
What are the features of strategic management?
On the basis of the definition, the following are features of strategic management: 1. The various processes of strategic management may be – . (a) Evaluation and monitoring of the outcome of these strategies to ensure that organisational objectives are being achieved.
Why is the process of decision making considered strategic?
The process is strategic because it involves preparing the best way to respond to the circumstances of the organization’s environment. It is strategic, because it is clear about the organization objectives and resources. It involves anticipating the future environment of decisions that are made in the present.
What is the role of stakeholder in strategic management?
Strategic Management – Role of Stakeholders in Strategic Management. A stakeholder is an individual or group that has a legitimate interest in a company. A corporate stakeholder is an individual or group who can affect or be affected by the actions of a business.
What is stakeholder management?
Stakeholder Management is the process by which the key stakeholders are identified and their support can be sought the best.
Why are formulators of strategy not intimately involved in its implementation?
If formulators of strategy are not intimately involved in its implementation, they may shirk their individual responsibility for the decisions reached. Due to laziness, people may not want to put forth the effort needed to formulate a strategic plan.
What is a strategic decision?
Strategic decisions are ones that are of fundamental importance. They are normally such that they are irreversible or at least can only be reversed at considerable cost. Grand strategy indicates how the objectives are to be achieved.
Why is it so difficult to present a conceptual framework of strategic management?
Presenting conceptual; framework of strategic management in a precise way is quite difficult because different management thinkers have defined strategy and strategic management in different ways. Reconciling these ways is a tedious task because each way is contradictory to other ways.
Components of Strategic Management
- #1 Formulation
Formulation includes an assessment of the environment in which the organization operates and then creating a strategy on how the organization will operate and compete. This is similar to the first step of the budgetingprocess. - #2 Implementation
Implementation includes the deployment of an organization’s resources to meet the desired objectives.
Frameworks For Strategic Management
- #1. Competitive Advantage
An organization may achieve either lower cost of production or product differentiation as an advantage against its rivals. It is important to look at the market positioning of the brand and company and also to pinpoint all the competitive advantagesthe company has over its competito… - #2. Corporate Strategy and Portfolio Theory
The Modern Portfolio Theory provides a framework for allocating assets so that, for a given level of risk, the expected returnis maximized. Portfolio Theory allows corporations to perform a cost-benefit analysis on the deployment of resources and view the merit of individual resource place…
Generic Competitive Strategies
- Companies should concentrate their strategy on either cost leadership, focus, or differentiation. According to famed business strategist Michael Porter, if a company does not place focus on a singular factor, it risks wasting its resources. Such a strategy places emphasis on either specializing in a product or service by creating a unique selling proposition or creating economie…
Industry Structure and Profitability
- The Competitive Forces Model (Porters 5 Forces) is a framework used to assess the competitiveness of the industry.
SWOT Analysis
- SWOTis an acronym for Strengths, Weaknesses, Opportunities, Threats. This framework is employed to assess internal strengths and weaknesses, to explore the external scope of opportunities available for the business to exploit, and to confront threats presented by opponents or policies.
Value Chain
- The value chain consists of a list of processes or activities that a company performs to bring a product or service into the market. The activities are divided into two functions:
Related Readings
- Thank you for reading CFI’s guide to Strategic Management. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional CFI resources below: 1. Corporate Strategy 2. CVP Analysis 3. Management Theories 4. Organizational Analysis