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Suggestion Answer MGT657
Suggestion Answer MGT657
Suggestion Answer MGT657
Chapter 1 – overview sm
Strategic
management is No formal training in strategic
not a guarantee management
for success and No understanding of or appreciation for
some firms do the benefits of planning
Dec Part b
not engage in No monetary rewards for doing planning
2015 1a
strategic Not punishment for not planning
planning at all. Prior bad experience with strategic
State five (5) planning done sometime.
reasons why
some firm
refuse to pursue
strategic
planning. (10
marks)
The key purpose of sm is to exploit and create
new and different opportunities for tomorrow
4 effective guidelines:
i) It should be people process more than paper
process
A perfect strategic plan will have no meaning if it
is not implemented.
Change comes through implementation and
evaluation not through the plan
A technically imperfect plan that is implemented
well will achieve more than the perfect plan that
never gets off the paper on which it is typed.
ii) It should be learning process for all managers and
employees
- State the key Strategic mgt must not be self-perpetuating
purpose of It must be self-reflective learning process that
sm and 4 familiarize managers and employees in the
effective organization with key strategic issues and feasible
guidelines in alternatives for resolving those issues
Jun Part b conducting iii) It should be words supported by numbers rather
2016 1a good than numbers supported by words
planning Should represent the medium for explaining
process.(15 strategic issues and organizational responses
M) Key role to strategists is to facilitate continuous
organizational learning and change
iv) It should be simple and nonroutine.
Eliminate jargon and arcane (complicated and
hard to understand) planning language
Strategic mgt is a process for fostering learning
and action, not merely a formal system for control
To avoid routinized behavior, vary assignments,
team membership, meeting formats and the
planning calendar.
Process should not be totally predictable , and
settings must be changed to stimulate creativity
Emphasize word-oriented plans with numbers as
back-up material
Strategic mgt. must not become ritualistic, stilted,
orchestrated or too formal, predictable and rigid.
Chapter 2 – vision mission
5 components of Customers
Dec mission o Who are the firm’s customers? How do you
2
2014 statement. Give benefit them? An effective mission statement
examples for sets out, in broad terms, the target market. A
each. (20m) manufacturer that makes nuts and bolts
might set its target market as retail hardware
stores, machine manufacturers, or both.
o Eg: Our customers are outdoor enthusiasts
seeking fishing excitement and adventure.
Products or services
o What are the firm’s major products or
services?
o Eg: Intel; Delight our customers (1),
employees (3), and shareholders by
relentlessly delivering the platform and
technology (2) advancements that become
essential to the way we work and live
Employees
o What is the firm's attitude/orientation
towards employees? Every company has a
policy regarding its relationship with
employees. A mission statement provides an
opportunity to describe that policy in brief so
employees know the essentials of where they
stand. A company’s employees need to feel
that their work is significant and that it
contributes to people’s lives.
o Eg: Our on the water and off the water
employees are on a mission to help
customers have a great time.
Markets
o Geographically, where does the firm
compete? The business must determine what
region it serves best and relay that
information by way of the mission statement.
A garage, for example, might limit its target
region to the community while a magazine
company might target an entire country.
o Eg: Toyota will lead the way to the future of
mobility, enriching lives around the world.
o
Public image
o Is the firm responsive to social, community
and environmental concerns? Companies
develop public images. Careful companies
craft the public image they want to establish
and lay out the major features of it in the
mission statement. This helps managers’
direct employees that stray from the
sanctioned public image.
o Eg: Toyota: “respect for the planet” was
mentioned in the line of their mission.
Differentiate 3
approaches in
determining a
Jun business’s worth
2
2015 when selling or
acquiring other
company
Dec
2015
Chapter 7 – strategy implementation