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Related Flashcards
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Cards In This Set
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What is strategic management?
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Is what managers so to develop the organizations srategies.
decisions and actions that determine the long run performance of an organization |
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Business model
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Which is a strategic design for how a company intends to profit from its strategies, work processes, and work activities.
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A company's business model focuses on what two things
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Whether customers will value what the company is providing and whether the company can make any money doing that
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Why is strategic management important?
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It can make a significant differnece in how well an organization performs
it deals with all types and sizes of company's face changing situations diversity |
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Strategic management processes
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Is a six step process that encompasses strategy planning, implementation, and evaluation.
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Six steps in the strategic management processes
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1. indentifying the organization's current mission, goals, and strategies
2 & 3. SWOT analysis- (Strengths, Weaknesses) internal,(Opportunities, Threats) external 4. formulate strategies 5. implement strategies 6. evaluate results |
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Mission
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A statement of the purpose of an organization
answers the question: what is out reason for being a business |
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External analysis: opportunities and threats
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Opportunities- are positive trends in external environmentmental factors
Threats- are negative trends |
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Internal analysis: Resources, capabilities, core competencies, strengths weaknesses
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Resources- an organizations assets that are used to develope, manufacture, and deliver products or services to its cutomers
Capabilities- skills and abilities in doing work activities needed in its business Core components- major value creating skills and capabilities that determine it competitive weapons Strengths- any activities the org does well or any unique resources Weaknesses- org does not do well or resources it does not possess |
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Types of organizational strategies
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Corporate, Business, Functional
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Corporate strategy
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Determines what business a company is in, should be in, or wants to be in, and what it wants to do with those businesses
Multibusiness corp |
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Types of corporate strategies
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Growth- used when an org wants to grow and do so by expanding the number of products offered or markets served, either through its current businesses or through new businesses
Stability- characterized by an absences of significant change in what the or is currently doing Renewal- designed to address org weakness that are leading to performance declines |
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Related and unrelated diversification
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Related- when a company grows by combining with firms in different, but related, industries
Unrelated- when a company grows by combining with firms in different and unrelated industries |
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Retrenchment strategy
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A short run renewal strategy. used when [erformance problems aren't as important.
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Turnaround strategy
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A renewal strategy for situtaions in which the orgs performance problems are more serious
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