Professional Documents
Culture Documents
Chapter One: Scope of Strategic Management
Chapter One: Scope of Strategic Management
Terminology
Strategic Management
Synonymous with
Strategic Planning
Strategic management
Strategic planning
Terminology
Strategic management
Refers to:
Strategy formulation
Strategy implementation
Strategy evaluation
Strategic planning
Refers to:
Strategy formulation
Brief History
1950s
1960s 1970s
Strategic planning very popular
Brief History
1980s
1990s2000
Strategic-Management Process
Three Stages
Strategy Formulation
Strategy Implementation
Strategy Evaluation
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Strategy Formulation
Vision & Mission
Opportunities & Threats
Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
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Strategy Implementation
Annual Objectives
Policies
Motivate Employees
Resource Allocation
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Strategy Evaluation
Review
External & Internal
Measure Performance
Corrective Action
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Strategists
Vision statements
Mission statements
External opportunities and threats
Internal strengths and weaknesses
Long-term objectives
Strategies
Annual objectives
Policies
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Economic
Social
Cultural
Demographic
Environmental
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Political
Governmental
Technological
Competitive trends & events
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Chapter 3
Vision
&
Mission
Statements
Chapter 2
Long-Term
Objectives
Generate,
Evaluate,
Select
Strategies
Implement
Strategies:
Mgmt Issues
Implement
Strategies:
Marketing,
Fin/Acct,
R&D, CIS
Measure &
Evaluate
Performance
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Internal
Audit
Chapter 4
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Principal Benefit
Communication
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Financial Benefits
High-Performing Firms
Systematic planning
Fluctuations in external and internal environments
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Nonfinancial Benefits
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Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
Suspicion
www.mindtools.com/plfailpl.html
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Misleading advertising
Misleading labeling
Environmental harm
Poor product or service safety
Padding expense accounts
Insider trading
Dumping flawed products on foreign markets
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Parent company
Host country
Cultural differences
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Advantages of International
Operations
Absorb excess capacity
Reduce unit costs
Low-cost production facilities
Lower labor costs
Competition less intense
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Advantages of International
Operations (Contd)
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Disadvantages of International
Operations
Communication difficulties between parent
and subsidiaries
Foreign-based competitors
Strengths underestimated
Weaknesses overestimated
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Planning in Action
http://www.planware.org/strategy.htm#1
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