Chapter 9 Strategic Management Flashcards
(26 cards)
Business model
A strategic design for how and organization ‘s intend to achieve it’s goals from its strategies, processes and activities
Strategic management
Is what managers do to develop the organization’s decisions and actions that determine the long run performance of the organization
Strategic management process
- Determine the mission, vision and values
- External analysis
- Internal analysis
- Formulate strategies and goals
- Gathering the required resources to implement strategies
- Implement strtegies
- Evaluate the process
Strategic management is important because
- It can make a difference in how well and organizations PERFORMS
- Helps managers with changes and uncertinty
- Helps organizational parts work together toward achieving goals
- It’s involve in many of the decisions managers make
Strategic management has to be
- Has to be Flexible
- Has to have clear goals
- Clear strategies
Mission
Is the reason of why the organization exist It must be: - short - understable - clear -simple
Components of a mission
- Stakeholders
- Influenced area
- Concern for survival, growt and achieving goals
- Philosophy
- Concern for public image
- Products or services
- Technology
- Self-concept
- Concern for employees
In order to create a mission you must
- Answer the questions
- Build mission
- Improve the mission by doing it simple, understandable and short
Vision is
How the organization will be in the future
- state time
- specific in time
Values
Helps to achieve mission and vision
Components of a Mission
- Stakeholders
- Influence area
- Concern for survival, growth and achieving goals
- Philosophy
- Concern for public image
- Products or service
- Technology
- Self- concept
- Concern for employees
Business model has to answer
- Will stakeholders value what the organization provides?
2. Can the organizations achieve their goals by doing that?
External analysis as the analysis of the environment
Is divided in two
- Generic : affect everybody in the same way
- Specific : affect only the industries
Generic environment is divided in
- Political
- Economic
- Legal
- Cultural
- Social
- Technology
- Environmental
- Demographic
Specific environment is divided in
- Customers
- Suppliers
- Competition
- Preassure groups (not all the organizations own)
Politic aspect ( generic environment)
- Democracy vs. totalitarism
- Individualism vs. colectivism
- democracy: direct ( people make decisions) and indirect ( someone make decisions for us)
- totalitarism: one person or group has the power and is imposed by force
- individialism: protects individual rights
- colectivism: general interests prevail over individuals rights
Economic aspect (generic environment)
Is divided in
- Free market ( no interventions of the government)- invisible hand
- Direct or command ( government intervention)
ALL ECONOMIES ARE MIXED
Legal aspect (generic environment)
Is divided in two:
- Common law (cases are solve by precedents)
- Civil law (cases are based on the law)
Cultural ( generic environment)
Masculinity vs. feminity Power distance Orientation Quality of life Tolerance for ambiguity
External environment
Help to determine opportunities and treats
Competition ( specific environment)
- Identify who they are
- Who is really the competition
- What my competition is doing
Internal analysis
Everything related with the organization
RESOURCES: what i have (financial, physical, human, intangible)
CAPABILITIES: what i can do
Process:
- Make. List of what the organization has
- Make a list of competitor’s resources and capabilities
- Compare
Core competences
Is what my competition can’t get
Competitive advantage
Is what my competition can get
