Strategic Management 492

Define Strategic Management

a set of decisions and actions that result in the formulation of plans designed to achieve a company objectives.

be able to define 4 of the 6 dimensions of strategic decisions.

-strategic issues require top-management team decisions -strategic issues require large amounts of firms resources - strategic issues often affects the firms long term prosperity - strategic issus are future oriented.

identify 5 of the 9 critical tasks of strategic management

1. formulate the companies mission 2. conduct an internal analysis 3. assess the external enviornment 4. Analyze the company options by matching its resources with the external environment 5. identify the most desirable option of the mission

Business level: describe and 2 examples

Business level: business and corporate managers [Middle] - They Determine how the firm will compete in the selected product-market areana.

corporate level: describe and 2 examples.

Corporate level: board of directors, CEO & administration [Highest] - they are responsible for the firm's financial performance and for the achievement of nonfinancial goals.

What are the implications of viewing strategic management as a process?

First, a change in any component will affect several or all the other components. Second, Strategy formulation and implementation are sequential. Third, feedback from institutionalization, review, and evaluation to he early stages of the process. Fourth, is the need to regard it as a dynamic system.

What forces determine how much formality is needed in strategic management?

Formality: the degree to which participation, responsibility, authority, and discretion in decision making are specified in strategic management. The size of the organization, its predominant management styles, the complexity of its environment, production process...

Functional level: describe and 2 examples

Functional level: Product, geographic, and functional area managers [Lowest] - They implement the overall strategy formulated at the corporate and business levels.

2. Describe how strategic decisions differ from other decisions that managers make.

these types of decisions often require top level management, these decision are often a lot longer then other types of decisions. there are many different levels of decisions.

What three modes are available? FORMALITY

¥ Entrepreneurial Mode - most small firms ¥ Planning Mode - most large firms ¥ Adaptive Mode - most medium size firms