Flashcards in UNIT 6. Chapter 34. What is strategic management? Deck (7)
Def. Corporate strategy
A long term plan of action for the whole organisation, designed to achieve a particular goal
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.
What is corporate strategy is influenced by? (4)
• Resources available
• Strengths of the business
• Competitive environment
• Objectives of the business
What are the three key stages of strategic management?
• Strategic analysis
• Strategic choice
• Strategic implementation
Differences between strategic decisions and tactical 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
• e.g. to sell product in different sized packaging
• Short term
• Taken by less senior managers
• Involves only 1 or 2 departments
Corporate strategy and organisational structure - read business examples at pg 611.