You are on page 1of 4

1 . Describe the benefits of Good Strategic Planning?

Define and give examples of


key terms of Strategic Management?
2 . Explain the concept of SBU in a Multi Business Organization. Identify the Three
levels of Strategy-Corporate, Business and Functional. How do Goals and Objectives
vary at each Level?
3 . What should be the key Traits of a CEO? What are the forces that design the
Strategic Management Systems?
4 . Discuss the various grand strategies at the Corporate Level i.e. Stability, Growth
and Retrenchment.
5 . Explain the concept of Porters five forces Model used for Industry Analysis?
What are the major factors that become barriers to entry in the New Industry?
6 . What used to be national markets with local companies competing for business
has become a global market with everyone competing for everyone's business
everywhere. Explain the 3 generic strategies by Porter for Competitive advantage in
the light of above statement.
7 . What do you understand by the term Business Portfolio? How do BCG and GE
matrix help a multi-business organization analyze its current business portfolio and
decide which businesses should receive more or less investment
8 . Discuss the following Factors affecting Strategic Choices in brief:
Nature of environment stable?
Firms internal realities
Ambition of CEO / owners
Company culture
Firms capacity to execute the strategy.
Resource allocation
Ans 1.
Strategic planning provides a variety of benefits in the organization.
Below are some of the benefits:

Clearly define the purpose of the organization and to establish realistic goals
and objectives consistent with that of the mission in defined time frame
within the organizations capacity for implementation.
Communicate those goals and objectives to the organizations employees.
Develop sense of ownership of the plan.
Ensure the most effective use is made of the organizations resources by
focusing the resources on key priorities.
Provides a base from which progress can be measured and establish a
mechanism for informed change when needed
Brings everyones best and most reasoned efforts have an important value in
building a consensus about where an organization is going.

Key terms of Strategic Management


1. Purpose this includes the reason why an organization exists. It includes a
description of its current and future business. The purpose of an organization
is its primary role in society, a broadly defined aim (such as manufacturing
electronic equipment) that it may share with many other organizations of its
type.
2. Mission it is the unique reason of an organization for its existence and what
sets it apart from all others. The organization's mission describes why the
organization exists and guides what it should be doing. Often, the
organization's mission is defined in a formal, written mission statement.
Decisions on mission are the most important strategic decisions, because the
mission is meant to guide the entire organization. Although the terms
"purpose" and "mission" are often used interchangeably, to distinguish
between them may help in understanding organizational goals.
3. Goals this is the desired future state that the organization attempts to
realize. It is a personal or organizational desired end-point in some sort of
assumed development. Many people endeavor to reach goals within a finite
time by setting deadlines.
4. Objectives refers to specific targets for which measurable results can be
obtained. It also points out to the specific kinds of result the organization
seeks to achieve through its existence and operations. What the organization
hopes to accomplish.
5. Strategy are means by which long term objectives will be achieved. Its role
is to identify the general approaches that the organization utilize to achieve
its organizational objectives.
6. Tactics are specific actions, sequences of actions and schedules an
organization uses to fulfill its strategy. It is also considered as game plan.
7. Policy - Policies include guidelines, procedures, rules, programs, and budgets
established to support efforts to achieve stated objectives. Therefore, policies
become important management tools for implementing them.
8. Strategists - are the individuals who are involved in the strategic
management process. Several levels of management may be involved in
strategic decision making. However, the people responsible for major
strategic decisions are the board of director, president, the chief executive
officer, the chief operating officer, and the division managers.
Ans 3.
It is noted that no two persons are alike this is also true with regards to
their personality and how they run their corporations/organizations. However, below
are some of the traits a CEO should possess to effectively run his/her organization.
1.
2.
3.
4.
5.
6.
7.
8.

Conveys strong sense of vision


Links compensation to performance
Communicates frequently with employees
Emphasizes ethics
Plans for management succession
Communicates frequently with customers
Reassigns or Terminates
Rewards loyalty

9. Makes sound decisions


Forces that design Strategic Management systems are as follows:
Organizations - based on their size are either gearing towards formality and
more details which speaks for large organizations while for small companies,
they tend towards less details and are not too formal.
Management styles how the top management conducts its business and
style of doing its business affects the design towards strategic management.
Policy making is part of the management style that most large and small
scale organizations use in part of designing their strategic management
system.
Complexity of Environment is the organization in a stable environment? Are
there any competitions to the companys success? Iis there a market for the
type of service offered? Some of these questions shape how systems are
develop for the organization as strategy will be determined by the answers of
the said questions.
Complexity of Production process entails how effective is the process itself.
Takes into consideration the following factors:
Production lead time
Capital intensive
Labor intensive
Manufacturing process
Technology
Market reaction time
Nature of problems determining nature of problems help in the design of
the system as they can come up with counter measures to solve the
situation.

Ans 6.
Globalization has hit firms harder as they now compete with products
that can be considered as of more durability and cheap. The mindset of most of the
consumers is that if its foreign made or made from a 1st world country it must be
durable. In addition that if sold alongside its local competitor, the foreign one is
much cheaper. To pursue an advantage over an organizations rivals, drastic
measures have to be set up to challenge globalization and the entry of competitors.
Changing prices will provide a temporary advantage towards the competitors. By
improving product differentiation, features, implementing innovations in the
manufacturing process provides a positive advantage as well. Using vertical
integration or a well-known distribution channel to corner other market brackets is a
sound strategy to combat globalization.
Exploiting relationship with suppliers is another way to compete wherein the
organization can set quality standards and thus requiring its suppliers to follow suit.
This increases the credibility and increases the reputation of the organization as one
who sells high quality goods.

Local companies need to step up and come up with revolutionary and innovative
ideas to rival other competitors from other countries. Advertising and re-thinking
the supplier and customers buying power is a way to help take advantage over a big
market. Diversification can also be done so as to make the organization survive on
different types of market rather than concentrate on one.