ENCODO COLLEGE
DEPARTMENT OF MANAGMENT
BY: 1. Molla Dessale ... . 403
2. Nega Wodajo ..379
3. Mulugeta Shambel ..316
4. Misgan Belay ..387
5. Meron Zegeye .............. ...236
6. Mekdes Degu ..209
7. Mulunesh Abto ....... .193
8. Mekdes Nega .. .424
9. Setye Amare .096
10. Eyerus Adino . .370
1. What is the Concept and Definition of Strategy and Management?
Strategy refers to a plan of action designed to achieve a long-term or overall aim. It involves
making decisions about how to allocate resources effectively to pursue specific goals. Strategy
can be seen as a roadmap that guides an organization in navigating its competitive landscape and
achieving its objectives.
Management, on the other hand, is the process of planning, organizing, leading, and controlling
an organization's resources to achieve specific goals efficiently and effectively. It encompasses
various functions, including decision-making, resource allocation, and performance monitoring,
to ensure that the organization operates smoothly and meets its objectives.
2. What are the Major Benefits of Strategic Approaches and write the Strategic
Implementation Involves?
Strategic approaches offer several significant benefits, including:
Clear Direction: They provide a clear mission and vision, helping organizations prioritize
resources and operations based on long-term objectives.
Operational Improvement: They foster cohesive efforts across the organization, leading to
greater efficiency and effectiveness in achieving goals.
Resource Optimization: Strategic management ensures better planning and utilization of
resources, aligning them with the organization's objectives.
Competitive Advantage: Ongoing analysis of external factors allows organizations to respond
proactively to market changes and competitive threats, enhancing their market position.
Sustainable Growth: Continuous assessment of internal and external environments helps
organizations adapt to changes and mitigate risks, supporting long-term growth.
Strategic Implementation Involves: The process of strategic implementation includes
several key steps:
Goal Setting: Establishing clear, realistic goals.
Strategic Analysis: Evaluating internal and external factors affecting the organization.
Formulation: Developing strategies to achieve the set goals.
Execution: Implementing the strategies through coordinated actions.
Evaluation: Monitoring and assessing the effectiveness of the strategies and making necessary
adjustments.
3. How Would You Explain the Importance of Strategic Management?
Strategic management is crucial for several reasons:
It enables organizations to analyze their operational environment and identify areas for
improvement.
It helps in aligning resources and efforts towards achieving long-term goals.
Strategic management fosters adaptability, allowing organizations to respond
effectively to changes in the market and competitive landscape.
It enhances decision-making processes by providing a structured approach to planning
and resource allocation.
Ultimately, it contributes to achieving a competitive advantage and ensuring sustainable
growth.
4. What are the Possible External and Internal Factors that may Affects an Organization to
Change?
Organizations face various external and internal factors that can necessitate change:
External Factors:
Market Trends: Changes in consumer preferences and behaviors.
Economic Conditions: Fluctuations in the economy, such as recessions or booms.
Technological Advances: Innovations that can disrupt existing business models.
Regulatory Changes: New laws or regulations that impact operations.
Competitive Landscape: Actions taken by competitors that may require strategic adjustments.
Internal Factors:
Organizational Culture: The values and beliefs that shape employee behavior and attitudes.
Resource Availability: The financial, human, and technological resources available to the
organization.
Leadership and Management Styles: The effectiveness of leadership in driving change and
innovation.
Employee Skills and Competencies: The capabilities of the workforce to adapt to new
strategies and processes.
5. Write and Explain Properly Components of External Environment?
The external environment consists of various components that can influence an organizations
strategy and operations:
Market Trends: These include consumer behavior, preferences, and overall market demand,
which can dictate how organizations position themselves.
Industry Dynamics: Factors such as competition, supplier power, and buyer power that shape
the competitive landscape.
Economic Factors: Economic indicators like inflation, unemployment rates, and economic
growth that affect organizational performance.
Technological Changes: Innovations that can create new opportunities or threats for businesses.
Political and Legal Factors: Government policies, regulations, and political stability that can
impact operational capabilities.
Social and Cultural Trends: Changes in societal values and cultural norms that can influence
consumer behavior and expectations.
6. Can Strategic Management contribute to the meeting of Objectives in the Non-Profit and
Public Sector?
Yes, strategic management can significantly contribute to meeting objectives in the non-profit
and public sectors. It helps these organizations to:
Clarify Mission and Vision: Strategic management aids in defining clear objectives aligned
with their mission, which is crucial for non-profits and public entities.
Enhance Resource Allocation: It ensures that limited resources are used effectively to
maximize impact and achieve goals.
Improve Accountability and Transparency: Strategic frameworks facilitate better reporting
and accountability to stakeholders, which is vital in the public sector.
Adapt to Changing Environments: Non-profits and public organizations can better respond to
social, economic, and political changes through strategic planning.
Foster Collaboration: Strategic management encourages partnerships and collaborations with
other organizations, enhancing resource sharing and impact
7. What are the Strategic Management Processes and why the Strategic plans fail?
The strategic management process consists of several key stages:
1. Environmental Scanning: This involves analyzing both the internal and external
environments of the organization to identify strengths, weaknesses, opportunities, and threats
(SWOT analysis).
2. Strategy Formulation: Based on the insights from the environmental scan, organizations
develop strategies to achieve their objectives.
3. Strategy Implementation: This stage involves executing the formulated strategies through
action plans and resource allocation.
4. Evaluation and Control: Organizations monitor the outcomes of their strategies and make
necessary adjustments to ensure that objectives are met.
Strategic plans can fail for several reasons:
Lack of Clear Vision: If the strategic vision is not well-defined or communicated, it can lead to
confusion and misalignment within the organization.
Inadequate Resources: Insufficient resources (financial, human, or technological) can hinder
the execution of strategic plans.
Resistance to Change: Employees may resist new strategies due to fear of change or lack of
understanding, leading to poor implementation.
Poor Leadership: Ineffective leadership can result in a lack of direction and motivation, causing
strategic initiatives to falter.
Failure to Monitor Progress: Without proper evaluation and control mechanisms, organizations
may not recognize when strategies are not working.
8. Based on your Strategic Management Course Concept Take one organization and
prepare Strategic Management Stages
To develop strategic management stages for Medhin Hospital in Woldia, we can follow a
structured approach. Here are the key stages:
### 1. **Strategic Analysis**
- **Internal Analysis**: Assess hospital resources, capabilities, and services.
- **External Analysis**: Analyze the healthcare market, patient demographics,
competition, and regulatory environment.
- **SWOT Analysis**:
- **Strengths**: Experienced staff, community trust.
- **Weaknesses**: Limited funding, outdated technology.
- **Opportunities**: Growing population, potential partnerships.
- **Threats**: Competition from private clinics, economic challenges.
### 2. **Strategic Formulation**
- **Vision and Mission**: Define the hospital's mission to provide quality healthcare and
a vision for future growth.
- **Goals and Objectives**: Set specific, measurable goals (e.g., increase patient
satisfaction by 20% in two years).
- **Strategies**:
- Improve service delivery through staff training.
- Invest in modern medical equipment.
- Expand community outreach programs.
### 3. **Strategic Implementation**
- **Action Plans**: Develop detailed plans with timelines and responsibilities.
- **Resource Allocation**: Allocate necessary resources (financial, human,
technological).
- **Change Management**: Prepare staff for changes through communication and
training.
### 4. **Monitoring and Evaluation**
- **Performance Metrics**: Establish KPIs to measure success (e.g., patient wait times,
treatment outcomes).
- **Feedback Mechanisms**: Implement systems to gather patient and staff feedback.
- **Review and Adjust**: Regularly review strategies and adjust based on performance
data.
### 5. **Continuous Improvement**
- Foster a culture of continuous improvement by encouraging innovation and
adaptability.
- Stay updated on healthcare trends and adjust strategies accordingly.
By following these stages, Medhin Hospital can create a robust strategic management plan
that enhances its service delivery and overall effectiveness in the community.
9. Define the Three Types of Single-Use Plans?
Single-use plans are designed for specific, non-recurring situations. The three types include:
1. Project Plans: Detailed plans for specific projects, outlining objectives, timelines, and
resources required.
2. Budget Plans: Financial plans that allocate resources for a specific period, detailing expected
revenues and expenditures.
3. Program Plans: Comprehensive plans that outline the steps and resources needed to achieve a
specific goal or set of objectives.
10. Differentiate between Planning by Top-Level Managers vs. Lower-Level Managers?
Top-Level Managers: They focus on long-term strategic planning, setting the overall direction
and vision for the organization. Their plans are broad and encompass the entire organization,
often involving significant resource allocation and high-level decision-making.
Lower-Level Managers: They engage in operational planning, which is more tactical and short-
term. Their plans are specific to departments or teams and focus on day-to-day operations,
ensuring that the strategic plans set by top management are implemented effectively.
11. What is the Difference between Strategic Intent and Strategic Vision?
Strategic Intent: This refers to the overarching goal or purpose that an organization aims to
achieve. It is often specific and measurable, guiding the organizations actions and decisions.
Strategic Vision: This is a broader, aspirational view of what the organization wants to become
in the future. It serves as a guiding star for the organization, inspiring and motivating employees
towards a common future.
12.
Strategic Plan for Woldia Premium Flour Factory (WPFF)
1. Business Name:
Woldia Premium Flour Factory (WPFF)
2. Strategic Vision Statement:
To be the leading provider of high-quality, locally produced flour in Northern Ethiopia,
recognized for innovation, sustainability, and food security enhancement.
3. Strategic Mission Statement:
To produce and distribute premium-grade flour that meets national food safety standards,
supports local farmers, creates employment opportunities, and contributes to the socio-economic
development of Woldia City and the Amhara region.
4. SWOT Analysis Framework:
Internal Environment
Strengths:
Newly established facility with modern milling equipment.
Access to locally sourced wheat from nearby farms.
Skilled technical staff trained in flour production.
Support from Woldia City Administration and regional government.
Weaknesses:
Limited brand recognition in the early stages.
Lack of diversified product lines (e.g., only wheat flour for now).
Inexperience in large-scale market distribution.
External Environment
Opportunities:
Increasing demand for locally milled flour due to population growth.
Government support for agro-processing industries.
Proximity to regional transportation hubs and marketplaces.
Potential export to neighboring towns and regions.
Threats:
Competition from established national flour brands.
Instability in wheat supply due to drought or conflict.
Inflation and fluctuations in production costs.
Regulatory challenges or policy changes affecting production.
5. Objectives
Long-Term Objectives (5 Years):
Become the leading flour brand in the Amhara region.
Expand production capacity by 50%.
Develop and market at least 3 new flour-based products (e.g., cake flour, whole wheat
flour).
Build long-term partnerships with 500+ local farmers for wheat sourcing.
Annual Objectives (Year 1):
Achieve 60% factory capacity utilization.
Secure contracts with 50+ local retailers and bakeries.
Complete staff training and quality certification processes (e.g., ISO 22000).
Conduct marketing campaigns to build brand awareness in Woldia and nearby towns.
6. Goals
Produce and sell 5,000 metric tons of flour within the first year.
Maintain product quality that meets Ethiopian food safety standards.
Establish a distribution network reaching at least 10 districts within the first 18 months.
Implement an employee development program to reduce staff turnover below 5%.
### Strategic Plan for Flour Factory in Woldia City Administration
**Business Name**: Woldia Flour Mill
**Strategic Vision**: To become the leading supplier of high-quality flour in the Amhara
region, recognized for our commitment to sustainability and community development.
**Mission Statement**: Woldia Flour Mill is dedicated to producing premium flour products
that meet the diverse needs of our customers while promoting sustainable practices and
contributing to the local economy.
### SWOT Analysis
- **Strengths**:
- High-quality production processes using modern milling technology.
- Strong commitment to sustainability and local sourcing of wheat.
- Experienced management team with a background in food production.
- **Weaknesses**:
- Limited brand recognition in the initial stages of operation.
- Dependence on local wheat supply, which may be affected by seasonal variations.
- **Opportunities**:
- Increasing demand for locally produced flour due to rising health consciousness among
consumers.
- Potential partnerships with local bakeries and restaurants to secure steady demand.
- Government support for local manufacturing initiatives and food security programs.
- **Threats**:
- Competition from established flour brands and imported products.
- Economic fluctuations that could impact raw material costs and consumer purchasing power.
- Potential regulatory changes affecting food production standards.
### Objectives
- **Long-term Objectives**:
- Achieve a market share of 30% in the local flour market within five years.
- Expand production capacity to 50 tons per day by the end of the third year.
- **Annual Objectives**:
- Increase sales by 20% in the first year through targeted marketing and community
engagement.
- Establish contracts with at least five local bakeries and restaurants within the first year.
### Goals
- Launch a marketing campaign within the first six months to raise awareness of Woldia Flour
Mill's products and benefits.
- Implement a community outreach program to educate local farmers about sustainable wheat
farming practices, enhancing the supply chain and community relations.
13. We visited four organizations in Woldia: Woldia University, Woldia Teacher Training
College, Woldia Vocational Training Center, and Woldia City Administration. Below are their
vision statements, mission statements, organizational values, and purposes, along with an
assessment of their effectiveness and any problems they may face.
1. Woldia University
Vision Statement: Woldia University aims to be a center of excellence in higher education,
contributing to the socio-economic development of Ethiopia.
Mission Statement: The University is committed to providing quality education, conducting
research, and engaging in community service to empower students and enhance their skills.
Organizational Values: Integrity, innovation, inclusiveness, and community engagement.
Purpose: To produce competent graduates who can meet the challenges of the job market and
contribute positively to society.
Assessment: Woldia University appears to have a well-defined vision and mission that align
with its educational goals. However, challenges such as resource limitations and the need for
improved infrastructure may hinder its effectiveness.
2. Woldia Teacher Training College
Vision Statement: To be a leading institution in teacher education that fosters quality teaching
and learning.
Mission Statement: The College focuses on training competent teachers who can effectively
contribute to the educational sector in Ethiopia.
Organizational Values: Professionalism, collaboration, and commitment to educational
excellence.
Purpose: To enhance the quality of education by preparing skilled teachers who can inspire and
educate future generations.
Assessment: The College has a clear mission and vision, but it faces challenges such as
insufficient funding and a lack of community engagement, which can limit its outreach and
effectiveness in teacher training.
3. Woldia Vocational Training Center
Vision Statement: To empower youth through vocational training and skills development for
sustainable livelihoods.
Mission Statement: The center aims to provide practical skills and training that meet the needs
of the local labor market.
Organizational Values: Empowerment, sustainability, and community service.
Purpose: To reduce unemployment by equipping individuals with the necessary skills to thrive
in various trades.
Assessment: The vocational training center has a strong focus on practical skills and community
needs. However, it struggles with limited resources and inadequate facilities, which can affect
the quality of training provided.
4. Woldia City Administration
Vision Statement: To create a vibrant and sustainable city that enhances the quality of life for
all residents.
Mission Statement: The administration is dedicated to providing effective governance, public
services, and community development initiatives.
Organizational Values: Transparency, accountability, and public participation.
Purpose: To foster a Conducive environment for economic growth and social welfare in Woldia.
Assessment: The city administration has a comprehensive vision and mission aimed at
community development. However, it faces challenges such as bureaucratic inefficiencies and
limited public engagement, which can hinder its effectiveness in implementing policies and
programs.
Among the organizations visited, Woldia University and Woldia Teacher Training College have
well-articulated vision and mission statements, but they face challenges related to resources and
community engagement. The Woldia Vocational Training Center is focused on practical skills
but struggles with facilities. The Woldia City Administration has a broad vision for community
welfare but needs to improve public participation and reduce bureaucratic hurdles.
14. What is the difference between goal and objectives?
Goals are broad, overarching targets that an organization aims to achieve. They provide a
general direction and purpose. For example, a goal might be to "increase market share."
Objectives, on the other hand, are specific, measurable steps that help achieve those goals. They
are often time-bound and quantifiable. For instance, an objective could be "to increase market
share by 10% within the next year."
15. Explain each term in your own words
Goals: These are the long-term aspirations of an organization. They define what the organization
wants to achieve in a broad sense and serve as a guiding star for strategic planning.
Objectives: These are the specific, actionable, and measurable outcomes that contribute to
achieving the broader goals. They break down the goals into manageable parts, making it easier
to track progress and success.
16. What does it mean Strategy implementation?
Strategy implementation refers to the process of putting a strategic plan into action. It involves
allocating resources, assigning responsibilities, and ensuring that all parts of the organization are
aligned with the strategic objectives. This phase is crucial because even the best strategies can
fail if not executed properly.
17. Write the nature of strategy implementation
The nature of strategy implementation includes several key aspects:
Action-oriented: It focuses on executing plans and achieving results.
Resource allocation: It involves distributing resources effectively to support strategic initiatives.
Coordination: It requires collaboration across different departments and teams to ensure
alignment with strategic goals.
Adaptability: It must be flexible to respond to changes in the internal and external environment.
18. What are the basic strategic Key concepts in strategy implementation?
Key concepts in strategy implementation include:
Alignment: Ensuring that all organizational activities are aligned with the strategic goals.
Communication: Clear communication of the strategy to all stakeholders to foster
understanding and commitment.
Monitoring: Regularly tracking progress against objectives to identify areas needing adjustment.
Feedback loops: Establishing mechanisms for feedback to refine strategies based on
performance data.
19. What is Strategy Evaluation & Control?
Strategy Evaluation & Control is the process of assessing the effectiveness of a strategic plan
and making necessary adjustments. It involves measuring performance against established
objectives and standards to ensure that the organization is on track to achieve its goals.
20. Write the nature of strategy evaluation?
The nature of strategy evaluation includes:
Continuous process: It is an ongoing activity that requires regular assessment of performance.
Data-driven: It relies on quantitative and qualitative data to evaluate success.
Adaptive: It allows for adjustments to be made in response to performance outcomes and
changing conditions.
21. What is the main Purpose of strategy evaluation?
The main purpose of strategy evaluation is to ensure that the organization remains aligned with
its strategic goals. It helps identify areas of success and those needing improvement, enabling
timely adjustments to strategies to enhance effectiveness and efficiency.
22. How Managers can Measuring Organizational Performance?
Managers can measure organizational performance through various methods, including:
Key Performance Indicators (KPIs): Specific metrics that track progress toward objectives.
Balanced Scorecard: A framework that provides a comprehensive view of organizational
performance across multiple dimensions.
Benchmarking: Comparing performance against industry standards or competitors to identify
gaps and opportunities for improvement.
23. Write and discuss the characteristics of An effective evaluation system
An effective evaluation system should have the following characteristics:
Clarity: Clear objectives and standards for measurement.
Relevance: Metrics that are directly tied to strategic goals.
Timeliness: Regular updates and assessments to reflect current performance.
Flexibility: Ability to adapt to new information and changing circumstances.
Comprehensiveness: A holistic view that considers multiple aspects of performance.
