UNIT 6. Chapter 34. What is strategic management? Flashcards Preview

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Flashcards in UNIT 6. Chapter 34. What is strategic management? Deck (7)
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1

Def. Corporate strategy

A long term plan of action for the whole organisation, designed to achieve a particular goal

2

Def. Strategic management

The role of management when setting long term goal and implementing cross functional decisions that should enable a business to reach these goals.

3

What is corporate strategy is influenced by? (4)

• Resources available
• Strengths of the business
• Competitive environment
• Objectives of the business

4

What are the three key stages of strategic management?

• Strategic analysis
• Strategic choice
• Strategic implementation

5

Differences between strategic decisions and tactical decisions?

Strategic decisions:
• e.g. develop new market abroad
• Long term
• Difficult to reverse once made because resources have been allocated
• Taken by directors and/or senior managers
• Cross functional - involve all departments
Tactical decisions:
• e.g. to sell product in different sized packaging
• Short term
• Reversible
• Taken by less senior managers
• Involves only 1 or 2 departments

6

Corporate strategy and organisational structure - read business examples at pg 611.

Pg. 611

7

How can the business strategy gain competitive advantage?

By trying to reduce costs and differentiating products.
Done by:
• Automation
• Rationalisation
• R&D