1
MNG3701 EXAM MAY/JUNE 2022_2023
Question 1 - With reference to the different strategic planning champions, explain who
is involved in the strategic management process. [5]
All management levels and employees have specific roles to fulfil in ensuring
successful strategizing.
The role of the top management team is to set the overall strategic direction of
the organisation by formulating the strategy, allocating the resources and
reviewing the strategic success. They are responsible for gathering information
from both the internal and external environment, and choosing strategies and
actions to help the organisation gain a sustainable competitive advantage. They
then communicate this to middle level management, explaining the rationale
behind strategic choices so that middle managers can link the strategies and
strategic goals to implementation efforts.
The top managers are also responsible for the review of strategies. A strategist
who is responsible for guiding the strategic planning in an organisation is often
referred to as a ‘strategic planning champion’ (SPC). There are three roles that
SPC’s must perform to work effectively:
The social craftsperson;
The artful interpreter;
The known stranger.
The senior or top management team needs to have sufficient detail of the
organisation to ensure that the strategizing is sound and able to allocate scarce
resources to put strategies in place.
Boards of directors of companies influence strategizing in organisations, being
the focal point and custodians for corporate governance. The board of directors
influences the overall direction and monitors the relationship between
management and other stakeholders to ensure that the organisation is
sustainable in the long-term. The King III report on Corporate Governance
requires the board to ensure that strategy is aligned with the purpose of the
organisation. The role of the board is more aligned to monitoring and reviewing
strategies than crafting them.
, 2
Traditionally, the role of middle managers was limited to implementation. Middle
management is now much closer to the strategic apex and makes a variety of
contributions to the formulation, implementation, review and success of the
strategies.
Four strategic roles of middle managers have been identified:
1. Implementing deliberate strategy – It deals with managerial interventions,
actions and tasks to align the organisational action with the strategic
intentions of top management. Middle managers’ ability to understand,
anticipate and manage processes needed to secure positive and pervasive
commitment to strategy is a critical general management implementation
skill. Middle managers implement strategy by translating corporate
strategy into action plans and individual objectives.
2. Synthesizing information – This is the interpretation and evaluation of
information.
Not only do middle managers provide information concerning internal and
external events to top managers, but they also responsible for passing
information down to subordinates, which can reduce uncertainty and
resistance to change. Middle managers are considered linking pins,
equipped with the ability to combine strategic macro-information and
hands-on micro-information.
3. Reshaping the strategic thinking of top management by selling to them
strategic initiatives that diverge from their current conception of strategy.
Middle managers frequently become organisational champions for
initiatives developed at the operating level. By proposing and defining
issues for top managers, middle managers provide important contributions
to an organisation’s strategic direction and thereby influence
organisational effectiveness.
4. Managing change and facilitating adaptability. Middle managers have
downward influence and need to support, guide and alleviate the concerns
and fears of subordinates. Middle managers play an important role in
managing these change processes by adapting and amending work
practices to align them to the changing environment. Within their areas of
responsibility, middle managers have the authority and responsibility to
facilitate change. Middle managers should be clear thinkers and be good at
identifying what needs to be done and then guiding their subordinates to
get it done.
Consultants as strategists - The management consulting industry is considered to
be one of the most powerful forces shaping organisational strategy. Guidance
, 3
from outside the organisation is often sought, especially when managers inside
the organisation lack the expertise in a specific area, or when decision making
has come to a standstill.
, 4
Strategic success is enhanced by the collective efforts of all strategists. The
process perspective of strategic management considers strategy as a process
with specific management roles and tasks assigned to each stage of the process.
The practice perspective offers a broader view of strategic management that not
only considers a wider range of strategists (board of directors, top management,
middle management, and consultants) but also allows for the messy realities of
doing strategy in practice.
Within the strategy-as-practice perspective, strategizing is the result of the
interaction between strategy praxis, strategy practices and strategists.
Question 3 - Explain what external assessment means in strategic management
terms. [5]
The strategic management process is supported by continuous scanning of the
external and internal environments. The purpose of the external environmental
analysis is to identify opportunities and threats outside the organization that may
influence the ability of the organization to achieve its strategic objectives.
Internal analysis is done for the purpose of understanding the organization’s key
strengths and key weaknesses, so that it can build on key strengths and counter
or mitigate key weaknesses. Environmental scanning should be an on-going
process that forms part of strategic evaluation and control.
Question B1
Organizations that follow a strategic management approach are generally in a better
position to deal with various business-related challenges. These organizations also
require responsible leadership and a clear vision from their top management so as to
succeed.
In view of the above statement, do the following:
1.1. Differentiate between the three phases of the strategic management
process. [5]
The traditional view of strategic management is that it is a process with distinct
phases. The three phases of the process perspective of strategic management are
strategy formulation, strategic implementation and strategic control. Strategy
formulation is a conceptual process that consists of environmental analyses and
formulation of strategies. Strategy implementation happens when all staff in the
organization is tasked with implementing the formulated strategies. Strategic
control is aimed at monitoring progress and providing feedback.
MNG3701 EXAM MAY/JUNE 2022_2023
Question 1 - With reference to the different strategic planning champions, explain who
is involved in the strategic management process. [5]
All management levels and employees have specific roles to fulfil in ensuring
successful strategizing.
The role of the top management team is to set the overall strategic direction of
the organisation by formulating the strategy, allocating the resources and
reviewing the strategic success. They are responsible for gathering information
from both the internal and external environment, and choosing strategies and
actions to help the organisation gain a sustainable competitive advantage. They
then communicate this to middle level management, explaining the rationale
behind strategic choices so that middle managers can link the strategies and
strategic goals to implementation efforts.
The top managers are also responsible for the review of strategies. A strategist
who is responsible for guiding the strategic planning in an organisation is often
referred to as a ‘strategic planning champion’ (SPC). There are three roles that
SPC’s must perform to work effectively:
The social craftsperson;
The artful interpreter;
The known stranger.
The senior or top management team needs to have sufficient detail of the
organisation to ensure that the strategizing is sound and able to allocate scarce
resources to put strategies in place.
Boards of directors of companies influence strategizing in organisations, being
the focal point and custodians for corporate governance. The board of directors
influences the overall direction and monitors the relationship between
management and other stakeholders to ensure that the organisation is
sustainable in the long-term. The King III report on Corporate Governance
requires the board to ensure that strategy is aligned with the purpose of the
organisation. The role of the board is more aligned to monitoring and reviewing
strategies than crafting them.
, 2
Traditionally, the role of middle managers was limited to implementation. Middle
management is now much closer to the strategic apex and makes a variety of
contributions to the formulation, implementation, review and success of the
strategies.
Four strategic roles of middle managers have been identified:
1. Implementing deliberate strategy – It deals with managerial interventions,
actions and tasks to align the organisational action with the strategic
intentions of top management. Middle managers’ ability to understand,
anticipate and manage processes needed to secure positive and pervasive
commitment to strategy is a critical general management implementation
skill. Middle managers implement strategy by translating corporate
strategy into action plans and individual objectives.
2. Synthesizing information – This is the interpretation and evaluation of
information.
Not only do middle managers provide information concerning internal and
external events to top managers, but they also responsible for passing
information down to subordinates, which can reduce uncertainty and
resistance to change. Middle managers are considered linking pins,
equipped with the ability to combine strategic macro-information and
hands-on micro-information.
3. Reshaping the strategic thinking of top management by selling to them
strategic initiatives that diverge from their current conception of strategy.
Middle managers frequently become organisational champions for
initiatives developed at the operating level. By proposing and defining
issues for top managers, middle managers provide important contributions
to an organisation’s strategic direction and thereby influence
organisational effectiveness.
4. Managing change and facilitating adaptability. Middle managers have
downward influence and need to support, guide and alleviate the concerns
and fears of subordinates. Middle managers play an important role in
managing these change processes by adapting and amending work
practices to align them to the changing environment. Within their areas of
responsibility, middle managers have the authority and responsibility to
facilitate change. Middle managers should be clear thinkers and be good at
identifying what needs to be done and then guiding their subordinates to
get it done.
Consultants as strategists - The management consulting industry is considered to
be one of the most powerful forces shaping organisational strategy. Guidance
, 3
from outside the organisation is often sought, especially when managers inside
the organisation lack the expertise in a specific area, or when decision making
has come to a standstill.
, 4
Strategic success is enhanced by the collective efforts of all strategists. The
process perspective of strategic management considers strategy as a process
with specific management roles and tasks assigned to each stage of the process.
The practice perspective offers a broader view of strategic management that not
only considers a wider range of strategists (board of directors, top management,
middle management, and consultants) but also allows for the messy realities of
doing strategy in practice.
Within the strategy-as-practice perspective, strategizing is the result of the
interaction between strategy praxis, strategy practices and strategists.
Question 3 - Explain what external assessment means in strategic management
terms. [5]
The strategic management process is supported by continuous scanning of the
external and internal environments. The purpose of the external environmental
analysis is to identify opportunities and threats outside the organization that may
influence the ability of the organization to achieve its strategic objectives.
Internal analysis is done for the purpose of understanding the organization’s key
strengths and key weaknesses, so that it can build on key strengths and counter
or mitigate key weaknesses. Environmental scanning should be an on-going
process that forms part of strategic evaluation and control.
Question B1
Organizations that follow a strategic management approach are generally in a better
position to deal with various business-related challenges. These organizations also
require responsible leadership and a clear vision from their top management so as to
succeed.
In view of the above statement, do the following:
1.1. Differentiate between the three phases of the strategic management
process. [5]
The traditional view of strategic management is that it is a process with distinct
phases. The three phases of the process perspective of strategic management are
strategy formulation, strategic implementation and strategic control. Strategy
formulation is a conceptual process that consists of environmental analyses and
formulation of strategies. Strategy implementation happens when all staff in the
organization is tasked with implementing the formulated strategies. Strategic
control is aimed at monitoring progress and providing feedback.
