Assignment # 1
1. Define the following?
a. Strategic management - the art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an organization to achieve its objectives.
b. Strategic planning - an organization's process of defining its strategy or direction and
making decisions on allocating its resources to pursue this strategy. It involves setting
goals, determining actions to achieve the goals, and mobilizing resources to execute the
actions.
c. Competitive advantage - refers to factors that allow a company to produce goods or
services better or more cheaply than its rivals, leading to superior margins and generating
value for the company and its shareholders.
d. Strategists - individuals or groups responsible for the formulation and implementation of
strategies within an organization. They analyze internal and external environments to
make decisions that will help achieve organizational objectives.
e. Vision and mission statement - A vision statement outlines what an organization wants
to be in the future, serving as a clear guide for choosing current and future courses of
action. A mission statement defines the organization's purpose and primary objectives,
focusing on what it does in the present to achieve its vision.
f. External opportunities and external threats - External opportunities are favorable
conditions in an organization's environment that can be exploited to its advantage.
External threats are unfavorable conditions that could hinder the organization's
performance.
g. Internal strengths and weaknesses - attributes of the organization that give it an
advantage over others, while internal weaknesses are attributes that place the organization
at a disadvantage.
h. Long-term objectives - specific results that an organization seeks to achieve over an
extended period, typically more than one year, to accomplish its mission.
i. Strategies - the means by which long-term objectives will be achieved. They involve the
allocation of resources and the actions taken to pursue the set goals.
j. Annual objectives - short-term milestones that organizations must achieve to reach their
long-term objectives. They are specific, measurable steps to be accomplished within a
year.
k. Policies - specific guidelines, methods, procedures, rules, forms, and administrative
practices established to support and encourage work toward stated goals.
2. Three Important questions to answer in developing a strategic plan.
a. Where are we now?
b. Where do we want to go?
c. How will we get there?
3. Five stages of the strategic management process. With definition.
a. Goal Setting - This initial stage involves clarifying the organization's vision and
establishing both short-term and long-term objectives. It sets the foundation for all
subsequent strategic activities.
b. Analysis - In this phase, organizations gather pertinent data to understand internal and
external factors that could influence goal attainment. This includes assessing market
trends, competitive landscapes, and internal capabilities.
c. Strategy Formulation - Based on the insights from the analysis, organizations develop
strategies to achieve their objectives. This may involve identifying necessary resources
and prioritizing specific goals.
d. Strategy Implementation - This stage focuses on executing the formulated strategies. It
requires clear communication of roles and responsibilities to ensure that all members
understand their contributions toward the organization's goals.
e. Evaluation and Control - The final stage involves monitoring the outcomes of the
implemented strategies. Organizations conduct performance appraisals and review
internal and external factors to identify any deviations from the plan, making necessary
adjustments to stay on course.
4. Three fundamental strategy evaluation activities. With definition.
a. Reviewing External and Internal Factors - This activity involves reassessing the
foundational elements of the organization's strategy by examining both external and
internal factors. Externally, this includes analyzing market trends, competitive dynamics,
and broader economic conditions. Internally, it encompasses evaluating resources,
capabilities, and overall performance. Regularly reviewing these factors helps identify
changes that may impact the effectiveness of the current strategy.
b. Measuring Organizational Performance - This step entails comparing the
organization's actual performance against the expected results. Key performance
indicators (KPIs) and other metrics are utilized to assess how well the organization is
achieving its strategic objectives. This measurement provides insights into areas where
the organization is performing well and highlights aspects that may require improvement.
c. Taking Corrective Actions - Based on the insights gained from reviewing factors and
measuring performance, this activity involves implementing necessary adjustments to the
strategy or its execution. Corrective actions may include reallocating resources,
modifying strategic initiatives, or redefining objectives to better align with the current
environment and organizational capabilities.
References:
https://www.coursehero.com/file/81071402/Blank/?utm_source=chatgpt.com
https://en.wikipedia.org/wiki/Strategic_planning?utm_source=chatgpt.com
https://quizlet.com/151001195/strategic-management-chapter-1-the-nature-of-strategic-managem
ent-flash-cards/?utm_source=chatgpt.com
https://www.chegg.com/homework-help/questions-and-answers/explain-competitive-advantage-s
trategists-vision-mission-statements-external-opportunities-q112009396?utm_source=chatgpt.co
m
https://www.coursesidekick.com/business/1400489?utm_source=chatgpt.com
https://www.amanet.org/articles/six-key-questions-in-strategic-planning/?utm_source=chatgpt.co
m
https://www.stratadecision.com/blog/strategic-management-process-what-is-it?utm_source=chat
gpt.com
https://homework.study.com/explanation/list-and-describe-each-of-the-three-strategy-evaluation-
activities.html?utm_source=chatgpt.com
