Chapter 8 Notes.pdf

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8: Strategic Management Strategic Management What is Strategic Management? What managers do to develop an organization ’s strategies The organization strategies are : plans for how the organization will do whatever it is in business to do how the company will compete successfully how it will attract and satisfy its customers in order to achieve its goals Business Model: How a company is going to make money It focuses on two factors: Whether customers will value what the company is providing Whether the company can make any money doing that As managers think about strategies, they need to think about the economic viability of their company’s business model Why is Strategic Management Important? There are three reasons: 1. It can make a difference in how well an organization performs: It appears that organizations that use strategic management have higher levels of performance. 2. Managers in organizations of all types and sizes faces continually changing situations: They cope with the uncertainty by using the strategic management process to examine relevant factors and decide what actions to take. 3. Organizations are complex and diverse: Each part needs to work toward achieving the organization ’s goals; strategic management helps do this . Strategic Management in Arab Organizations Formal strategic planning exists but is rather limited. The vast majority of organizations implement various forms of reactive and intuitive planning; very few implemented formal strategic planning. Lack of confidence in the impact of formal strategic planning. Managers sometime doubt the real value of strategic planning. In cultures where some individuals are more concerned about the present and near future rather than the distant future, appreciation for long-term strategies tend to be limited. The trend for formal strategic planning is on the rise With the increased use of Western models of management, many managers are finding it important to enhance awareness about such processes to make implementation easier.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Strategic Management Process Strategic Management Process: six step process that encompasses strategy planning, implementation, and evaluation. Step 1: Identifying the organization ’s current mission, goals & strategies Mission: statement of organization’s purpose what the organization is in business to do Identify the current goals & strategies so managers will have a basis for assessing whether they need to be changed Goals: Strategic Goals: increase sales 20% Tactical Goals: new plants in Brazil, China & Egypt Operational Goals: Buy land for these plants Step 2: Doing an External Analysis External environment creates an important constraint on a manager’s actions Analyzing the environment is a critical step Managers do an external analysis so they know: What the competition is doing What pending legislation might affect the organization
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern