Mgt 4335-Chapter 1 Flashcards
TT-What are 4 phases of strategic management?
- Basic financial planning - following year budget.
- Forecast-based planning 5 year plan.
- Externally oriented planning - upper level management(decision making), knowledge of competition, lower level management(implementing)
- Strategic management - planning groups at all levels, possible scenarios&contingency plans.
T-What are benefits of strategic management?
Strategic management emphasizes long-term performance. The attainment of an appropriate match, or “fit,” between an organization’s performance. Strategic planning becomes increasingly important as the environment becomes more unstable.
TT-What is strategy formulation?
The development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses.
How many categories of risks can be grouped into the effects of climate change on industries and companies throughout the world?
- Regulatory Risk
- Supply Chain Risk
- Product and Technology Risk
- Litigation Risk
- Reputational Risk
- Physical Risk
T-What are four basic elements of Strategic Management?
Environmental scanning.
Strategy formulation.
Strategy implementation.
Evaluation and control.
What is environmental scanning?
It is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation.
Explain external environment and internal environment:
- External environment consists of variables (Opportunities and Threats) that are outside the organization and not typically within the short-run control of top management.
- Internal environment consists of variables (Strengths and weaknesses) that are within the organization itself and are not usually within the short-run control of top management. They include the corporation’s structure, culture, and resources.
T-What is strategy formulation?
It is the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses (SWOT)
T-What is mission meant?
It is the purpose or reason for the organization’s existence. A succinct, well-written statement about why an organization exists. Who we are, What we do, Why we are here.
T-What is the purpose of mission statement?
- Identify product/services.
- Specify buyer need satisfied, identify the customers/ market served.
- Give the company its identity.
TT-What are elements of good Mission statement?Give example.
1.Definition of the business: What needs do we satisfy? Who are our customers? How we meet needs? 2. Vision for the future. 3. Statements of values-operational Example of Google: "To organize the world's information and make it universally accessible and useful."
What is Vision meant? Give example.
What the organization would like to become. A goal that is massively inspiring, overarching, and long-term. Driven by and evoking passion.
Example of CVS Caremark: “To improve the quality of human life.”
Toys ‘R’ Us: “To put joy in kids’hearts and a smile on parents’face.”
T-What is goals/objectives?
Ways to evaluate progress.
T-Why are goals managerial valuable?
- They focus efforts & align actions throughout the org.
- They serve as yardsticks for tracking performance & progress.
- They motivate employees to expend greater effort & perform at a higher level.
T-What makes a good goal? Types of goals?
S - Specific M - Measurable A - Attainable R - Realistic T - Timeline Financial - Money Strategic - strengthening company: market share, composition, Business Prospects.
