What is strategic management?
Strategic management is where administrators set up an organization's long-term goals, set the particular execution objectives, create techniques to accomplish these objectives and embrace to execute the picked activity designs.
What is the meaning of the word strategy?
Strategy is a blueprint of all the vital enterprising, competitive and functional zone activities that are to be taken in pursuing organizational objectives and positioning the organization for sustained success and uncovers how the focused on results will be practiced.
What are some of the characteristics of strategic management?
- it is performed by an organization's CEO (Chief Executive Officer) and official group;
- it is a combination of strategy formulation and strategy implementation;
- it gives by and large course to the undertaking;
- it is the most abnormal amount of administrative action;
What specific entrepreneurial aspects include the strategy formation process?
- ferreting out new open doors for the organization to seek after;
- developing approaches to increase the association's competitive quality and place it in a more grounded position to adapt to competitive powers;
- devising approaches to assembled and maintain a competitive favorable position;
- searching effectively for innovative ways the organization can enhance what it is as of now doing;
- directing assets from territories of low or diminishing outcomes toward regions of high or increasing outcomes;
- deciding when and how to differentiate;
- deciding how to meet threatening outside improvements;
- choosing which businesses (or items) to relinquish, which of the continuing ones to underlines, and which new ones to enter or include.
- encouraging individuals all through the organization to advance innovative proposition and championing those that have guarantee;
What involves the strategic management functions?
The strategic management function directly involves all managers with line authority at the corporate, line-of-business, functional area, and major operating department levels.
Outline the steps of strategic management?
- developing approaches a plans to accomplish these objectives;
- specifying an organization's objectives;
- allocating assets to actualize the approaches.
What is strategy formulation?
- determining where you are currently;
- determining how you arrive;
- determining where you need to go.
What involves the strategy implementations?
- establishing a chain of direction or some elective structure,
- implementing explicit projects, meaning acquiring the essential assets, developing the procedure, training, process testing, documentation and integration with inheritance process.
- it additionally involves managing the procedure (monitoring results, comparing to benchmarks and best works on, evaluating the viability and effectiveness of the procedure, controlling for differences, making changes in accordance with the procedure as vital),
- assigning obligation of explicit undertakings or procedures to explicit individuals gatherings,
- allocation of adequate assets (financial, staff, time, innovation support).
Give the components of strategic management
- implementing and executing the picked strategic arrangement,
- formulating a strategy to accomplish the objectives,
- evaluating strategic execution and making restorative changes,
- establishing strategic objectives and execution targets,
- defining the organization's business and developing a strategic mission.
What is mission in strategic management?
the management’s view of what the organization seek to do and to become over the long-term is the organization’s strategic management.
What do we mean by formulating strategy?
Formulating a strategy shows how the focused on results will be cultivated – a point by point activity plan is important to accomplish both short-run and long-run outcomes.
What is the meaning of strategic objectives?
- the market position and competitive standing the organization aims to achieve;
- the annual profitability targets;
- key financial and operating results to be achieved through the chosen activities;
- any other milestones by which strategic success will be measured.
What is strategy implementation and execution?
Strategy implementation and execution implies putting the strategy into spot and getting individuals and organizational subunits to go full scale in executing their undertakings in the subsequent stage. The authority's test is to so animate the nthusiasm, pride and duty of managers and representatives in request to complete the picked strategy and to accomplish the focused on results.
What is strategy formulation?
Strategy formulation involves doing a situation analysis: both internal and external; both micro-environmental and macro-environmental, setting the objectives by crafting vision statements, mission statements, overall corporate objectives, strategic business unit objectives and tactical objectives that suggest the strategic plan.
Explain the difference between ‘strategic management’ and ‘strategy’.
The substance of strategy is about the game-plans essential, or approach taken, for accomplishing the association's main objectives and at last the general reason. - Strategic administration concerns the administration of the association's general reason, to guarantee every one of the necessities of the present are considered with those of things to come. These may identify with all the six explicit errands of direction, objectives, strategy, usage, execution, and key control (POSIES, as outlined on page 309). - Hence, strategy is just a single part (which works at three dimensions – business, corporate and worldwide) of vital administration. Strategy is likewise unique in relation to something that is strategic (consequently Sun Tzu's renowned line that 'all men can see the strategies whereby I vanquish however what none can see is the strategy out of which extraordinary triumph is developed') or operational viability (which Porter contends is critical yet is sub-par compared to, and which can't supplant, genuine strategy).
Explain the levels of involvement in strategic management and the role of staff at each level. How does the strategy hierarchy facilitate this?
- The fundamental duty of strategic management is transcendently at the best dimension. This is on the grounds that senior management is most learned of the motivation behind the association and can accordingly guide the entire association to achieve it.
- However, everybody has some inclusion in the doing of strategic management. The measure of individual association is diminished as we go down the dimensions of the hierarchical structure. The measure of inclusion in strategic management is appeared by the pyramid whereby senior management (at the best) is most connected with strategic management and bosses and administrators are most associated with day by day management however just a little strategic management.
- The strategy progression is an elucidation of the distinctive dimensions of strategy and who are in charge of overseeing it at the diverse dimensions of chain of importance. The sort of strategy mirrors the idea of the work embraced by staff at the diverse dimensions of the chain of command.
Explain the controversial debate in strategic management regarding how strategy can be formed or formulated, ie – how emergent strategy is different from deliberate strategy.
- Despite the more complex commitments to the subject field on what makes up the strategy and the distinctive schools, one of the key discussions is if strategy ought to be framed after some time or be defined by senior management. Inside this unmistakable division (between strategic arranging and emanant strategy), alternate partitions, for example, Mintzberg's ten schools can likewise fit. - With plan, the fundamental reason is that senior management has the best information of the general strategy and is most suitable for choosing a strategy that whatever is left of the organization ought to pursue. This view recommends that strategy ought to be predictable and explicit to the organization, which is the thing that gives it competitive preferred standpoint. - interestingly, there are the developing strategists who recommend that there ought not be one explicit strategy (conscious) and that the proper strategy ought to be framed after some time (ie, rise), mulling over examples of past conduct, accordingly upgrading the significance of the learning organization, where the significance lies in having great data streams. This view is like the possibility of James Brian Quinn on logical incrementalism.
Outline the fundamental differences between inside-out thinking and outside-in thinking about strategic management, and their influence on strategy.
- Outside-in thinking- strategy concerns how the outer condition, for example, how the competitive position of the organization, defines the manner in which the organization is figured out how to sustain competitive favorable position. An undeniable case of this is Porter's perspective of competitive strategy, where the five powers that shape an industry should initially be considered and after that a proper strategy be picked. - Inside-out thinking about strategy concerns the thought of the internal assets of an organization as the key wellspring of competitive favorable position. This is steady with the asset-based perspective of strategy whereby competitive
advantage is accomplished through the specific integration of a company's strategic assets. - truth be told, the two perspectives are essential, concerning an organization the two its outer and internal conditions must be evaluated. The internal abilities of a firm ought to be designed to satisfy the changing needs of the outer condition. - Some instances of valuable structures that consider either outside-in or inside-out thinking ought to be noted, just as key issues in strategy.
Discuss the importance of purpose to an organization, and how that purpose may be regarded as synonymous to the purpose that underpins human existence.
- The starting point to anything is its motivation, which is a similar whether it is an organization or an individual. While there are various speculations behind the presence of people on Earth, each individual has his/her very own conviction, and it is that conviction that determines how s/he carries on with his/her life. An organization exists for a long haul reason, and making cash is just a single action that encourages the accomplishment of that long haul reason, and does not establish that reason in essence (else it will have achieved it as of now!). - To make a 'reason' conceivable to the organization, three distinct parts are accessible to help: vision, mission and qualities. The job of each of these is extraordinary, and regularly organizations miss the point. Regardless of whether these are not unequivocal, each organization still has them as in they are verifiable in the manner in which it oversees. Express proclamations likewise have the upside of promoting to general society the quality of the organization and further goes about as a marketing device. - The way these influence the management of the organization, where vision influences the strategy, values influence the organizational culture, and mission influences the business demonstrate.
Who are the typical stakeholders of an organization, and how do they affect the purpose and management of it?
- The average stakeholders of an organization include, yet are not confined to: loan specialists, clients, government, representatives, proprietors, and so on (as appeared in figure 2.2). Their influence upon the organization shifts depending on the industry to which the organization has a place and the idea of that industry (especially in the event that it is either a high or low speed industry). - Indeed, a few organizations might not have a portion of those stakeholders at all and at times their essence is just verifiable. - The key stakeholders are the clients, providers and workers. - The lucidity and introduction of the motivation behind an organization might be influenced on the off chance that at least one of the stakeholders have a solid influence over the manner in which the organization works. For instance, for the situation of open administrations the wellbeing or
monetary controller has a power over the norms of administrations expected by the organizations, thus the reason for the organization ought to be lined up with their desires. Also, in industries of high challenge, clients might be all the more demanding thus they might almost certainly influence the future course, and along these lines influence even in a little degree the reason, of the organization.
Is there always a perfect alignment between an organization’s purpose and culture?
- There might be a crisscross between the genuine intention of the organization's motivation and its culture mainly because of the absence of clearness of the previous. - The reason regularly influences the culture of the organization as the reason exists first and afterward individuals who are appointed to the position are then supported to the necessities of that reason. Be that as it may, for transformed organizations, for example, those which have turned into the result of non-natural development (merger and procurement action), at that point the cultures may have existed first through an inheritance of the consolidated organizations and the recently settled reason may not be reliably or all around lined up with them. - There are three dimensions of culture (antiques, embraced qualities, and essential underlying suspicions) which must be overseen diversely by the chief concerned, and if these are not overseen appropriately there is probably going to be misalignment to the organizational reason. - To enable administrators to think all the more truly about managing the culture of the organization, the social web might be instrumental to that procedure.
Discuss the dangers of mismatch between corporate image and corporate identity. What strategies are possible for closing this difference gap?
- Corporate image and corporate character are diverse things: the previous alludes to what the organization is comprehended with regards to the stakeholders (as beneficiaries), and the last alludes to the organization's mental self view. - It is regular for a crisscross between the two, especially when the marketing endeavors of the organization are not compelling; for this situation it is critical that the organization isn't inclined to terrible open impression.
How can the emergence of the importance of corporate social responsibility be seen as a threat to the purpose of an organization?
- If the organization is an old one, there might be unequivocal statements of purpose that don't accord with the present desire for corporate social obligation. - Compliance with corporate social obligation matters may regularly be costly, and accordingly the incurrence of these costs may mean cut-backs on other organizational objectives.
How can objectives be used as a filter system through which the organizational purpose is transferred into comprehensive outcomes against which to measure performance?
- The essential role of objectives is to separate the organizational purpose into an understandable definition, regularly offered by a lot of objectives that identify with various individuals in various parts of the organization. - This should be possible through various ways, and apparatuses have been developed throughout the years to deal with the role. For instance the fair scorecard is presumably the most prominent, yet there are other 'execution management instruments, for example, the execution pyramid, tableau de bord, and so on - There are various types and kinds of objectives, all serving distinctive purposes. The manner in which organizations use and classify objectives (into those which are strategic versus operational) is a method for identifying what should be done to drive execution and what screens execution. - Employees should be clear about their objectives and what they mean, in order for them to be powerful.
What are the differences between strategic and operational scorecards, and why is this distinction between the two important?
- A genuine case of the plainly unique utilization of these scorecards is in the EDF case, where strategic objectives are displayed in the type of desire and operational objectives are the neighborhood office (organize related) measures and objectives. - Strategic scorecards and operational scorecards feed off one another.
- various conditions distinguish strategic from operational scorecards: mainly that the objectives the previous deal with are CSFs (critical success factors) and those the last deal with are KPIs (key performance indicators). - Another vital distinction is in the utilization of such scorecards. Strategic scorecards involve the definition of objectives (initial segment of strategic management) and operational scorecards involve the usage of objectives down parts of the organization.
How can the use of objectives ensure organizational involvement?
- A key point of objectives is to guarantee that everyone in the organization recognizes what they are to almost certainly add to them in the fitting method to guarantee arrangement of exertion. Various management systems have endeavored to do this, and the most famous is the decent scorecard approach (another opponent is the Performance Prism, among other comparative methods). - Within the decent scorecard approach, the idea of strategy mapping relates all input and yield exercises, and it tries it clearer how extraordinary endeavors within the organization identify with one another. - One key job of objectives is to separate the meaning of the reason into understandable activities. Where this is the situation, everybody in various parts of the organization are progressively ready to identify with the distinctive objectives, as they understand how their day by day work adds to the long haul point of the organization; this in turn guarantees a wider involvement. - The nature of objectives ought to be with the end goal that they pursue the SMART abbreviation; where this is the situation, objectives are progressively commonsense.
How can objectives be problematic, and in what way can the use of objectives be considered as ‘bad’ management?
- Simply put, objectives can be viewed as being tricky in the 10 different ways. - Bad management of objectives is when organizations don't understand what kind of objectives they are in any case. For instance, some are strategic and some are operational, and the apparatuses utilized for them might be tricky on the off chance that they are not understood appropriately.
What are the different ways in which the external environment can be explored, and for what purposes?
- various very specialized instruments and management systems might be utilized for such exercises. - Another famous/prominent approach to consider the outside condition is to create a PESTEL rundown of elements: political, economic, social, technological, environmental and legal. These ought be a static rundown, yet rather a functioning and dynamic rundown of critical considerations for consistent audit of the organization.
- The most clear approaches to investigate and evaluate the outside condition are the place the spotlight might be wide on scanning, situations, monitoring and forecasting. - Each of these is utilized for a specific reason: scanning is a diagram of the general condition to get on general occasions; situations are imagined and likely happenings; monitoring involves checking up on developing changes; and forecasting involves predicting conceivable outcomes dependent on computations.
Compare and contrast structural breaks and ‘black swan’ events
- Simply put, objectives can be viewed as being tricky in the 10 different ways. - Bad management of objectives is when organizations don't understand what kind of objectives they are in any case. For instance, some are strategic and some are operational, and the apparatuses utilized for them might be tricky in the event that they are not understood appropriately.
In what ways is knowledge of industry life cycles helpful to the strategic management of organizations?
- Industry life cycles explain the conduct of the diverse stages through which items/benefits within it experience. Understanding it enables businesses to design and deal with the following phase of their items/administrations. - The industry life cycle isn't equivalent to the item life cycle (albeit both pursue a similar bend); the previous is the total of the last mentioned. - Against every one of the stages, it is conceivable to evaluate various imperative conditions, for example, client/shopper attributes, competitive conditions, and so on,
- Some handy arrangements might be feasible for extending or renewing items/administrations depending on the general state of the industry.
Are Porter’s five forces still appropriate for managing today’s business environment?
- In 1979 Porter’s ground-breaking article on the five forces of an industry first appeared in the Harvard Business Review. Over the years scholars and practitioners have tried to put this theory into use, and it has received much criticism and a range of interpretation. - In 2008, Porter revisited the idea with an update of this article in a special anniversary edition of the Harvard Business Review. The paper outlined the misinterpretations of the concept over the years, and stresses its continuing importance and relevance, even in today’s management. In particular, Porter outlines factors which are influences, not additional forces.
- Other quite recent papers by Porter, such as the 2001 paper, summarised as Principles in Practice box 4.2, outline how the five forces can be applied for more modern contexts, such as the internet. There is other very recent research, such as working papers, that suggests that the five-force model is also a useful framework for assessing a range of industry structures and is not restricted to just competitive conditions.
Is the use of strategic group analysis a marketing tool?
- The model utilized in the book for explaining strategic gatherings utilizes marketing intensity as a defining normal for investigation, yet a strategic guide utilized for strategic gathering examination can involve any arrangement of qualities. - Marketers frequently utilize a strategic gathering investigation to determine what kind of item/administration attributes on which to stress. - However, it is likewise essential for strategists to know where the uncontested space is, the means by which near a contender the organization is, and how much exertion is important for competing in certain conditions. - A comparative way to deal with the strategic gathering examination is Blue Ocean Strategy.
What are the defining characteristics that determine the internal competitive advantage of an organization?
- Competitive favorable position depends on synthesizing great the internal setup of assets and using them in a way that is reliable with the requests of the regularly changing outer condition. - This view is known as the resource based view of strategy (RBV). - RBV depends on mobilizing strategic assets and satisfying every one of the perspectives appeared in the pyramid. - Probably the greatest inquiry regarding RBV is the thing that really comprises a 'strategic asset'. Barney's VRIO structure (esteem, irregularity, inimitability and sorted out to misuse) shapes the appraisal criteria..
How does Porter’s value chain facilitate the workings of the resource-based view in achieving competitive advantage?
- Porter's generic value chain is contained five essential exercises and four help exercises which structure the strategically applicable contemplations of the internal condition of an organization. - If the asset based view is right, at that point the arrangement of assets within the organization ought to be around these key exercises. - Competitive preferred standpoint depends on how esteem is perceived by clients and saw as being not the same as opponents. Consequently the esteem chain is instrumental to how an organization conveys this particular and diverse arrangement of qualities.
- Regarding the esteem chain, there must be adequate streams of information between the diverse parts of the chain. The expense of producing the esteem must be not as much as that apparent as valuable by the clients.
Is an organization that offers a cheap price operating a cost leadership strategy, according to Michael Porter?
How do business models differ from the use of a value chain?
According to Michael Porter, is strategy the same thing as operational effectiveness?
What is the significance of strategy activity mapping, and how can it be used to enhance competitive advantage?
Of what use is the Miles and Snow Typology: prospectors, analysers, defenders and reactors?
What are the basic premises of corporate level strategy, and how is this different from corporate strategy?
Explain the implications of diversification strategies.
Discuss the advantages and disadvantages of corporations involved in organic and non-organic growth.
The BCG (Growth-Share) Matrix is old but has stood the test of time. How significant and practicably usable is it today, in the light of vast developments in management tools that help assess market conditions?
How successful is franchising as a means of corporate growth?
Explain the meaning of ‘the world is flat’ in the context of globalization.
If the benefits of globalization concern the expansion of operations across international borders, why then is it necessary to consider a strong home base?
Under what conditions are the four strategic approaches for global level business most appropriate?
What is the strategic importance of emerging markets?
Explain the possible approaches for strategic alliance and partnerships.
Why is organizational structure important and how does structure itself become a source of competitive advantage?
Why do the Japanese favour cross-functional structure?
How can downsizing be used to sustain competitive advantage?
How does structure support strategic architecture?
What is loosely-coupled strategic management?
What is the essence of strategic performance management, and why is it becoming increasingly recognised as of fundamental importance?
How is strategic performance management different in Japan than the west?
What is the inspiration behind ‘hoshin kanri’ and how has it influenced western management?
How is the general ‘management of objectives’, following Japanese principles, different from ‘management by objectives’ used popularly in the West?
How have governments in the UK and USA taken on board lessons of strategic performance management in the running of their public services?
Why are leaders of strategic importance?
“Men in general judge by their eyes rather than by their hands … everyone is in a position to watch, few are in a position to come in close touch with you!” Discuss this sentence in the context of emotional intelligence.
How different are leaders from managers, and does it matter?
How does leadership strategy change with the size of an organization?
How can Simons’ model of strategic control levers be useful, say for understanding the cause of the global financial crisis?