Lecture 1 Flashcards
(20 cards)
What is strategic management?
The art and science of formulating, implementing and evaluating cross-functional decisions that enable a firm to achieve objectives.
What is a strategy in business?
A general approach a firm uses t achieve objectives and gain competitive advantage.
What is competitive advantage?
Any activity a firm does especially well compared to rivals , setting it apart in the market.
What are the three core questions in strategic management?
- Where are we now?
- Where do we want to go?
- How are we going to get there?
What are the three stages of strategic management?
STRATEGY FORMULATION
STRATEGY IMPLEMENTATION
STRATEGY EVALUATION
What is the purpose of a vision statement?
To describe what the firm wants to become and its desired future position.
What are the 5 characteristics of a mission statement?
-Customers
-Products/ Service
-Markets
-Technology
Self-concept
Public Imge
-Employees
What is the purpose of a mission statement?
To declare an organizations’s reason for being and answer “What is our business”
What is the difference between vision and mission?
Vision is future oriented (What do you want to become?) Mission is present oriented (What is our business)
Why is strategic management cross functional ?
It integrates business areas like marketing finance to align with goals and gain competitive advantage.
What is the first step of strategy formulation?
Setting the vision and mission statement.
What the difference between a bad and good mission statement?
“We aim to be a company that sells products and satisfies ur customers”
-To Vague-doesn’t specify what products or who the customers are
Lacks directions- No mention of values, growth employees or markets.
What are the three stages of the strategic management process?
strategy formulation
Strategy implementation
Strategy evaluation
What is the difference between strategy formulation, implementation and evaluation?
Formulation: Setting vision, mission, and objectives.
• Implementation: Allocating resources and motivating employees.
• Evaluation: Measuring performance and taking corrective actions
What is the role of vision and mission in strategy formulation?
Vision defines where the firm wants to go; mission defines how it plans to get there
What are the characteristics of a strong objective in strategic management?
Specific, measurable, consistent, and clear. E.g., “Increase annual revenues by 7 billion”
What are the five key characteristics of an effective vision statement?
Clear, futuristic, concise (1 sentence), unique, and inspiring
What does it mean that strategic management is a ‘process’?
: It is an ongoing cycle of decisions and actions involving formulation, implementation, and evaluation to meet objectives
What is the role of SWOT and PESTEL in strategic management?
Tools used in environmental scanning during strategy formulation to assess internal/external factors
