Module 2 Test and Evaluation

1. In your opinion, what is the single major benefit of using a strategic-management

approach to decision making? Justify your answer.

The main benefit is that it aids firms in developing better strategies by utilizing a

more methodical, logical, and reasonable decision-making process. Communication from

top management to ordinary workers is critical to developing better strategies and a more

successful business. Everyone must communicate and participate as a team to accomplish

better techniques and a more successful organization.

One of the most significant advantages is that it helps employees and management

understand the business and industry. In order to fulfill the company's goals, strategic

management also include enabling the implementation and design of numerous strategies.

This is the comprehensive initiative taken by top management - these strategic decisions

are made based on available resources, as well as the consequences of the micro and

macro environment on their decisions. Tactical management is a method of translating a

static plan into a well-organized, systematic activity. Strategic management can result in

quick organizational changes. The following are some of the benefits of strategic

management:

Making a brighter future: Companies that practice strategic management will strive

to be more defensive than offensive, because the goal is to emerge triumphant

from a competitive position rather than a victim of it.

Defining the company's aims and purpose: Strategic management is critical in

determining the company's goals and mission. The fundamental goal of this policy is

to create realistic targets and goals that are in keeping with the company's vision.

Strategic management offers a foundation for the corporation on which progress

can be assessed and people may be paid.

 Better business decisions: It's important to recognize the distinction between a

fantastic idea and a decent one. If you have a nice and clear vision for your

company, having a purpose and means to accomplish it always sounds like a good

idea. When you select what sort of project you want to put your money in, as well as

how you intend to spend your time and utilize the time of your staff, it becomes a

fantastic concept.

Financial benefits: Organizations that use the strategic management method

generate higher earnings over time than companies that do not use strategic

management. Those organizations that employ strategic management use the

correct planning strategy – these are the enterprises that have good control over

their own destiny. They have set aside sufficient funds for future initiatives, and as a

result, their operations have lasted for a long period in the sector.

Non-financial benefits: Companies that use strategic management give a variety of

non-financial benefits in addition to the financial ones. According to experts,

companies that practice organizational strategies are constantly prepared to

combat external challenges. They have a greater grasp of the competitor's strengths

and weaknesses, and hence are able to survive the competition.

2. Explain why a mission statement should not include monetary amounts, numbers,

percentages, ratios, goals, or objectives.

When deciding on a mission statement, there are three key objectives that must be

met. Because it is a wide qualitative orientation for the corporation's tactics, strategy, and

operations, measuring or expressing it statistically is not an option. To begin with, it

enables the production and discussion of a variety of simple alternative aims and plans

without suffocating management innovation. Excessive detail would impede the

organization's ability to evolve creatively. Second, a mission statement must be

comprehensive in order to reconcile disputes among an organization's varied stakeholders

and appeal to them. As a result, a mission statement should be created. Third, revealing
goals and objectives in the mission statement is just premature, since they should be

defined after internal and external assessment, as seen in the paradigm of comprehensive

strategic planning.

3. Compare and contrast vision statements with mission statements in terms of

composition and importance.

A company's strategic planning requires both a vision and a mission statement.

They offer a framework for the strategic planning that follows as the first phase in the

strategic management mode. The composition of vision and mission statements, on the

other hand, differs. For starters, vision statements are usually simply one sentence long.

This line expresses succinctly what the organization aspires to be. Mission statements, on

the other hand, are usually three to four sentences long. Mission statements are more

broad and encompassing, and they express what the company is all about. Mission

statements define the company's purpose and serve as the foundation for all of the

company's activities. Furthermore, vision statements are written with an eye toward the

company's future objectives and what it wants to be, whereas mission statements are

produced with an eye on the company's current behavior.