STRATEGIC MANAGEMENT Flashcards
(34 cards)
It is a process which includes the setting of company objectives, the analysis of its internal & external environment, the creation , implementation, & monitoring of sustainable strategies that will
enable them to achieve the desired competitive advantage.
Strategic Management
can be defined as the art
and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.
Strategic Management
focuses on integrating management, marketing, finance/accounting, production/operations, research
and development, and information systems to achieve organizational success
Strategic Management
“Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it has no place to go.”
Joel Ross and Michael Kam
At this stage, managers must have acquired information related to the effectiveness of a particular strategy so that appropriate adjustment
can be made.
Strategy Evaluation
We must remember that the business environment keeps on changing and the business organization must do the same.
Strategy Evaluation
Three fundamental strategy-evaluation
activities:
1.reviewing external and internal factors that are
the bases for current strategies,
- measuring performance,
- taking corrective actions.
are especially critical for a
successful strategy implementation.
Interpersonal skills
hinges upon managers’ ability to motivate employees, which is
more an art than a science. Strategies formulated but not implemented serve no useful purpose.
strategy implementation
Often considered to be the most difficult stage in strategic management, strategy implementation requires :
- personal discipline
- commitment
- sacrifice.
have the authority to allocate resources necessary for implementation.
Managers
Since no business organization has ____ we must select a strategy that will give the most benefit to the organization.
unlimited resources
It is a process which includes the setting of company objectives, the analysis of its internal & external environment, the creation ,
implementation, & monitoring of sustainable strategies that will enable them to achieve the desired competitive advantage.
Strategic Management
Strategies for Competitive Advantage
COST LEADERSHIP
DIFFERENTIATION
FOCUS
a strategy where a company
projects itself as the cheapest manufacturer or provider of a
particular product or commodity in a competition.
Cost Leadership Strategy
the strategy of creating a uniquely
different product.
Differentiation Strategy
the strategy of offering a specialized service in a niche market
Focus Strategy
are things an organization dose so well they can be viewed as providing a competitive advantage.
Core competencies
to be better than competitors.
Competitive advantage
a specific consumer target market with a specialized
offering.
Market Niche
It is sometimes known as organizational analysis and is
concerned with identifying & developing an organization’s
resources, which includes their assets & competency, process,
skill, or knowledge.
Internal Environment Scanning
does it provide competitive advantage?
Value
do other competitors possess it?
Rareness
Imitability: Is it costly for others to imitate?
Imitability
