Slide - The Nature and Value of Strategic Management...

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The Nature and Value of Strategic Management Strategic management The set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. Nine Critical Tasks of Strategic Management Formulate the company’s mission Conduct an internal analysis Assess the external environment – competitive and general contexts Analyze the company’s options by matching its resources with the external environment Identify the most desirable options in light of the mission Select a set of long-term objectives and grand strategies that will achieve the most desirable options Develop annual objectives and short-term strategies that are compatible with long-term objectives and grand strategies Implement the strategic choices Evaluate the success of the strategic process for future decision making What is Strategy? Large-scale, future-oriented plan Used to interact within competitive environment to achieve company goals Provides a framework for managerial decisions Reflects a company’s awareness of the main elements of competition Three Levels of Strategy Business level: business and corporate managers [Middle] Functional level: Product, geographic, and functional area managers [Lowest] Strategy Makers Ideal strategic team includes decision makers from all three levels Top managers must give final approval Strategic decisions coincide with managers’ responsibilities Strategic Management Process Businesses vary in formulation and other processes The basic components of the models used to analyze strategic management are similar Strategic management is a process —a flow of information through interrelated stages of analysis toward the
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Components of Strategic Management Model Company Mission External Analysis Long-Term Objectives Short-Term Objectives Policies Empowering Action Internal Analysis Functional Tactics Newest Trends in Mission Components : The following are increasingly integral parts in the development of missions: Customers as a priority Quality as a priority Inspirational vision statement Deming’s 14 Points 1. Create constancy of purpose. 2. Adopt the new philosophy. 3. Cease dependence on mass inspection to achieve quality. 4. End the practice of awarding business on price tag alone. Instead, minimize total cost, often accomplished by working with a single supplier. 5.
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This note was uploaded on 07/15/2011 for the course ACCT 122 taught by Professor Barry during the Spring '11 term at Universitas Pelita Harapan.

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Slide - The Nature and Value of Strategic Management...

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