Chapter 1 The Nature of Strategic management
Strategic Management
Art and science of formulating, implementing, and evaluating cross-functional decisions that enable an
organization to achieve its objectives.
Strategic Planning
Refers only to strategy formulation.
Strategic-Management
Refer to strategy formulation, implementation, and
evaluation
Strategic Plan
A company's game plan.
Strategies
Determine long-term competitive advantages
Strategy formulation
Developing mission/vision, identifying organizations external opportunities & threats, detecting internal
strengths & weaknesses, estimating long-term objectives, generating alternative strategies, & choosing
particular strategies to pursue.
, Strategy implementation
Requires a firm to establish annual objectives, devise policies, motivate employees, & allocate resources
so that formed strategies can be executed.
Strategy implementation
Often considered to be the most difficult stage in strategic management,
"action stage"
Strategy implementation often is called the "_________" of strategic management
Interpersonal skills
Critical for successful strategy implementation
Strategy Evaluation
Managers need to know which strategies not working well; primary means for obtaining this information
Strategy Evaluation
It is needed because success today is no guarantee of success tomorrow!
Intuition
Based on past experiences, judgment, and feelings which is useful for making decisions in situations of
great uncertainty or little precedent.
Strategic Management
Art and science of formulating, implementing, and evaluating cross-functional decisions that enable an
organization to achieve its objectives.
Strategic Planning
Refers only to strategy formulation.
Strategic-Management
Refer to strategy formulation, implementation, and
evaluation
Strategic Plan
A company's game plan.
Strategies
Determine long-term competitive advantages
Strategy formulation
Developing mission/vision, identifying organizations external opportunities & threats, detecting internal
strengths & weaknesses, estimating long-term objectives, generating alternative strategies, & choosing
particular strategies to pursue.
, Strategy implementation
Requires a firm to establish annual objectives, devise policies, motivate employees, & allocate resources
so that formed strategies can be executed.
Strategy implementation
Often considered to be the most difficult stage in strategic management,
"action stage"
Strategy implementation often is called the "_________" of strategic management
Interpersonal skills
Critical for successful strategy implementation
Strategy Evaluation
Managers need to know which strategies not working well; primary means for obtaining this information
Strategy Evaluation
It is needed because success today is no guarantee of success tomorrow!
Intuition
Based on past experiences, judgment, and feelings which is useful for making decisions in situations of
great uncertainty or little precedent.
