unit 1 exam revised

Question 1

Define Strategic Management.

Answer 1

The process where all organisational functions & resources are integrated to formulate strategies to achieve the organisation’s long-term goals, therefore gaining a competitive advantage by adding value for stakeholders

Question 2

What does VUCA stand for?

Answer 2

Volatile
Uncertain
Complex
Ambiguous

Question 3

List the 4 transformations that influence a strategist’s business models and work.

Answer 3

The available strategic space has expanded.
Business is global.
Speed is critical.
Innovation is a new source of competitive advantage.

Question 4

Why is strategic management important?

Answer 4

Strategic management offers
a route for achieving competitive advantage through
several strategies.
It is an effort by an organisation to outperform its rivals.

Question 5

Explain the people involved in strategic management.

Answer 5

Human Resources (HR) - Human capital
Consists of 3 stages:

The first stage, environmental analysis, is the responsibility of every manager at every managerial level.
The second stage ‒ strategy formulation – is the responsibility of top management.
The final stage ‒ strategy implementation ‒ is often the most challenging and is
the responsibility of all levels of employees and sometimes other stakeholders.

Question 6

Define a strategic planning champion and list their roles.

Answer 6

Strategy practitioners who introduce, promote and guide the strategic planning.
Roles:
Social craftsperson
Artful interpreter
Known stranger

Question 7

Differentiate between the qualitative and quantitative decisions needed in strategic management.

Answer 7

Qualitative ‒ intuition/“gut feeling” ‒ Richard Branson’s success with the
The Virgin Group, for instance, was largely due to its strategic vision and intuition.
Elon Musk and the Tesla Group
Strategic intuition often comes with years of experience in the industry.
Quantitative ‒ built on proper strategic analysis and choice.

Question 8

List the benefits of strategic management.

Answer 8

Higher profitability
Higher productivity
Empowerment
Change management
Effective time management
Effective resource management

Question 9

List the risks of strategic management.

Answer 9

Time
Unrealistic expectations from managers and employees
The uncertain chain of implementation
Negative perception of strategic management
No specific goals or measurable outcomes
Culture of change
Success groove

Question 10

Explain the strategic management process & strategic visualisation.

Answer 10

Strategic visualisation may improve the quality of the strategic management process ‒ the graphic representation of strategic content

Organisational direction and environmental analysis

Strategy formulation

Strategy implementation and control

Question 11

Perceive how strategic management could benefit not-for-profit and global organisations

Answer 11

Set clear goals and objectives.
Make informed decisions.
Adapt to change.
Allocate resources effectively.

Question 12

List some strategic issues and concepts leading us into the future.

Answer 12

Knowledge management
Innovative management
Strategic leadership
Ethics