Redual, Mariela Althea S.

BSBA 3A – FM

TOPIC 1: THE NATURE OF STRATEGIC MANAGEMENT

1. Which stage of strategic management do you feel is most important? Why?

The act of putting plans and strategies into action to achieve desired goals, as opposed to merely
brainstorming, is what I consider to be the most crucial of the stages of strategic management. It
aids in demonstrating to the team the viability of the discussed strategies. Because everyone can
participate, it's also a fantastic tool for team building. The most reliable indications of good
management are also good strategy implementation and execution. Therefore, strategy
implementation aids in gauging an organization's management effectiveness.

2. Strategy formulation, implementation, and evaluation activities occur at what three hierarchical
levels in a large organization? Cite an example.

In a large organization, activities related to strategy formulation, implementation, and evaluation

occurs at the corporate, divisional, and functional levels. First, if a company's strategy at the
corporate level serves as its cornerstone. It determines that a company's mission has an impact
on all other business strategies. Expansion, Stability, Retrenchment, and Combination are among
the most popular corporate-level strategy types. For instance, if your corporate-level strategy is
to enter a new market and plans for growth then all your company's other strategies and
initiatives must support this overarching plan. The second organizational structure type is
divisional, which classifies business activities into groups like products or services, customer
demographics, and geographic regions. McDonald's Corporation, one of the world's largest fast-
food chains is a good illustration of this. Lastly, Department managers must make sure that daily
operations within each department are in line with the specified corporate outcomes for
functional level strategy to be successful. To determine whether each area is accomplishing the
larger goals, it will be necessary to put into place specific measures. Examples of such strategies
would be a company's marketing strategy, financial strategy, production strategy, or strategy for
research and development. To achieve the broader corporate level strategy, each of these distinct
strategies will necessitate different tactical choices.
3. Compare and contrast the activities involved in strategy formulation versus strategy implementation.

Strategy Formulation Strategy Implementation

Contrast Contrast

- Planning and decision-making - Executing the strategic plans

- Placing the forces before action Compare - Managing forces during the action

- Entrepreneurial Activity - Administrative Task

- Emphasizes on Effectiveness -Both strategic- - Emphasizes on Efficiency

- Rational Process management process - Operational Process

- Establishing long-term objectives -Both helps the - Establishing annual objectives

- Requires a great deal of initiative and organization - Motivational and leadership traits

logical skills - Developing and utilizing information

-Identifying external’s opportunity system

and threats - Developing a strategy-supportive

-Determining internal strengths culture

and weaknesses