Strategic Management Studyguide

GB410 Quiz Study Guide

Chapter 1:

What is strategic management?

1. Analyses of strategic goals of the internal / external environment

2. Decisions based on what industry to compete in (Corporate Strategy) and how to compete in the chosen industry (Competitive Positioning)

a. *Now that we know our strengths and weaknesses from our analyses, where do we position?

3. Actions: recommendation about actions that must be taken

4. Strategic Management: an integrative management yield that combines analysis, formulation, and implementation in the quest for competitive advantage

What is the difference between strategic and operational decisions?

1. Strategic Decisions: affect the whole firm and involve creating competitive advantage

a. Harder to imitate, whole firm/big picture things

b. EX:

i. Industry position, changing the image of business, M&A, mission statements

2. Operational Decisions: help make strategic decisions work—they translate strategies into area of action (ie: HR, finance, marketing, R&D, manufacturing)

c. Easier to imitate

d. These help to make the strategic decisions actually happen

e. What do we need to change in *this department to make this happen?

f. EX:

ii. Advertising & promotional coupons (Marketing)

iii. Changing bonus system (only affects employees)

iv. Training programs (support larger goal—HR department)

3.

Vision, Mission, and Strategic Objectives

1. Mission Statement: set of goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage

a. Has greatest impact when it reflects an organization’s enduring, overarching strategic priorities and competitive positioning

2. Vision: goal that is “massively inspiring, overarching, and long term”

b. Represents a destination that is driven by and evokes passion

3. In Hierarchy of Goals:...