Summary Strategic Management
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Summary of
Strategic management
With the following topics:
Strategic planning, strategic planning process, internal analysis, external analysis, the Five
forces model, scenario planning, formulating strategies, evaluate strategies, how to make a
choice between strategies, business level and corporate level, strategies and limitations of a
BCG matrix, different kinds of corporate level strategies, global strategies, entry models,
corporate governance, implementing a strategy, challenges and risks implementing a
strategy into a company, organizational design, different kinds of strategic changes, manage
strategic change (including leadership), kind of obstacles when managing strategic change,
sustainability, strategic storytelling.
Based on mainly literature of:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage
Learning.
Written in: 2014
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Strategic planning
Strategic planning describes how a company executes a strategy which is chosen. The plan tells more
about the future of the company (long term plans): where is the organization going about a year, and
how do they get there? With strategic planning every person in the company is involved (Olsen,
2011). That's why strategic planning is called the alignment between the organization and the
environment. You also have to take into account the opportunities and threats and strengths and
weaknesses of the organization (Olsen, 2011; Allaert & De Klerck, 1998).
Besides that, a strategic plan gives you information about to build your competitive advantage,
communicates the strategy to the staff, gives the preference for the financial needs (which you
need), and gives focus and direction to move from plan to action (Olsen, 2011).
Sources:
Allaert, G. & Klerck, P. de (1998). Krijtlijnen voor een betere aanpak van strategische planning en management
in Vlaanderen. Accessed via Google Books.
Olsen, E. (2011). Strategic planning for Dummies. Accessed via Google Books.
Strategic planning process
Because of the differences between organizations, no strategic planning process will be the same
(Olsen, 2011). For example, the strategic planning process do you have in eight steps :
1. Getting ready. For example: create a planning committee, clarify roles of the group and
develop a profile for the organization.
2. Articulate mission/vision. Like what is important for the organization (why does the
organization exists, what are the important values for the organization)?
3. Review strategic position. If you collected the information of your internal
strengths/weaknesses and external opportunities/threats, you will be able to develop and
understanding the critical issues.
4. Agree on priorities. To focus on the priorities you have to identify the broad approaches for
dealing with critical problems and the results which you have to find out (long-term and
short-term objectives/goals).
5. Organize the plan. Put everything together in one document, 'that is practical, can be
implemented, and easily managed and monitored' (Olsen, 2013, p. 44).
6. Identify next actions. After step 5 chose which actions do you and your need have to make
(individual and department).
7. Roll out & implement. In this step you will communicate the whole plan across the
organization.
8. Hold everyone accountable. Monitoring the performances during staff meetings with metrics
every month or quarter. Besides that, keep people responsible for organizational activities
which will be planned, evaluate performances, and manage or make corrections for e.g.
future results.
Another source, Jones Hill (2010), writes in his book Theory of Strategic Management about five main
steps:
1. Select the corporate mission and the major corporate goals.
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2. Analyze the external competitive environment of the organization, to make clear the
organization's opportunities and threats.
3. Analyze the internal operating environment of the organization, to make clear the
organization's strengths and weaknesses.
4. The selecting of strategies 'that build on the organization's strengths and correct its
weaknesses in order to take advantage of external opportunities and counter external
threats' (Hill, JAAR, p. 12).
5. This last step is for implementing the strategies (Hill, 2010).
Sources:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage Learning.
Olsen, E. (2011). Strategic planning for Dummies. Accessed via Google Books.
Internal analysis
An internal analysis is used for identifying strengths and weaknesses of a company. It helps managers
to develop plans in light of the history, and also for the current status, the capabilities, and strengths
and weaknesses of a company (Hirsch, 2000). The analysis is used together with the external
environment of a company. The internal analyses entail three steps:
1. 'Managers must understand the process by which companies create value for customers and
profit for themselves, and they need to understand the role of resources, capabilities, and
distinctive competencies in this process' (Hill, 2010, p. 74);
2. Understand how the following features create value and generate high profitability: superior
efficiency, quality, innovation and customer responsiveness;
3. Managers should be able to analyze 'the sources of their company's competitive advantage
to identify what is driving the profitability of their enterprise and were opportunities for
improvement might lie' (Hill, 2010, p. 74).
With this information the managers received from the steps, they should be able to choose a
business model and strategies for getting a sustained competitive advantage.
Sources:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage Learning.
Hirsch, M.L. (2000). Advanced Management Accounting. Accessed via Google Books.
External analysis
An external analysis is the second component of the strategic management process. It is an analysis
of the organizations external operating environment. The purpose of this analysis is to identify the
strategic opportunities and threats in the organizations operating environment that will affect how it
pursues its mission.
The following environments should be examined when undertaking an external analysis:
written by:
robinnos
The Marketplace to Buy and Sell your Study Material
Buy and sell all your summaries, notes, theses, essays, papers, cases, manuals, researches, and
many more..
www.stuvia.com
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Summary of
Strategic management
With the following topics:
Strategic planning, strategic planning process, internal analysis, external analysis, the Five
forces model, scenario planning, formulating strategies, evaluate strategies, how to make a
choice between strategies, business level and corporate level, strategies and limitations of a
BCG matrix, different kinds of corporate level strategies, global strategies, entry models,
corporate governance, implementing a strategy, challenges and risks implementing a
strategy into a company, organizational design, different kinds of strategic changes, manage
strategic change (including leadership), kind of obstacles when managing strategic change,
sustainability, strategic storytelling.
Based on mainly literature of:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage
Learning.
Written in: 2014
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
Strategic planning
Strategic planning describes how a company executes a strategy which is chosen. The plan tells more
about the future of the company (long term plans): where is the organization going about a year, and
how do they get there? With strategic planning every person in the company is involved (Olsen,
2011). That's why strategic planning is called the alignment between the organization and the
environment. You also have to take into account the opportunities and threats and strengths and
weaknesses of the organization (Olsen, 2011; Allaert & De Klerck, 1998).
Besides that, a strategic plan gives you information about to build your competitive advantage,
communicates the strategy to the staff, gives the preference for the financial needs (which you
need), and gives focus and direction to move from plan to action (Olsen, 2011).
Sources:
Allaert, G. & Klerck, P. de (1998). Krijtlijnen voor een betere aanpak van strategische planning en management
in Vlaanderen. Accessed via Google Books.
Olsen, E. (2011). Strategic planning for Dummies. Accessed via Google Books.
Strategic planning process
Because of the differences between organizations, no strategic planning process will be the same
(Olsen, 2011). For example, the strategic planning process do you have in eight steps :
1. Getting ready. For example: create a planning committee, clarify roles of the group and
develop a profile for the organization.
2. Articulate mission/vision. Like what is important for the organization (why does the
organization exists, what are the important values for the organization)?
3. Review strategic position. If you collected the information of your internal
strengths/weaknesses and external opportunities/threats, you will be able to develop and
understanding the critical issues.
4. Agree on priorities. To focus on the priorities you have to identify the broad approaches for
dealing with critical problems and the results which you have to find out (long-term and
short-term objectives/goals).
5. Organize the plan. Put everything together in one document, 'that is practical, can be
implemented, and easily managed and monitored' (Olsen, 2013, p. 44).
6. Identify next actions. After step 5 chose which actions do you and your need have to make
(individual and department).
7. Roll out & implement. In this step you will communicate the whole plan across the
organization.
8. Hold everyone accountable. Monitoring the performances during staff meetings with metrics
every month or quarter. Besides that, keep people responsible for organizational activities
which will be planned, evaluate performances, and manage or make corrections for e.g.
future results.
Another source, Jones Hill (2010), writes in his book Theory of Strategic Management about five main
steps:
1. Select the corporate mission and the major corporate goals.
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
2. Analyze the external competitive environment of the organization, to make clear the
organization's opportunities and threats.
3. Analyze the internal operating environment of the organization, to make clear the
organization's strengths and weaknesses.
4. The selecting of strategies 'that build on the organization's strengths and correct its
weaknesses in order to take advantage of external opportunities and counter external
threats' (Hill, JAAR, p. 12).
5. This last step is for implementing the strategies (Hill, 2010).
Sources:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage Learning.
Olsen, E. (2011). Strategic planning for Dummies. Accessed via Google Books.
Internal analysis
An internal analysis is used for identifying strengths and weaknesses of a company. It helps managers
to develop plans in light of the history, and also for the current status, the capabilities, and strengths
and weaknesses of a company (Hirsch, 2000). The analysis is used together with the external
environment of a company. The internal analyses entail three steps:
1. 'Managers must understand the process by which companies create value for customers and
profit for themselves, and they need to understand the role of resources, capabilities, and
distinctive competencies in this process' (Hill, 2010, p. 74);
2. Understand how the following features create value and generate high profitability: superior
efficiency, quality, innovation and customer responsiveness;
3. Managers should be able to analyze 'the sources of their company's competitive advantage
to identify what is driving the profitability of their enterprise and were opportunities for
improvement might lie' (Hill, 2010, p. 74).
With this information the managers received from the steps, they should be able to choose a
business model and strategies for getting a sustained competitive advantage.
Sources:
Hill, J. (2010). Theory of Strategic Management (9th edition). South-Western: Cengage Learning.
Hirsch, M.L. (2000). Advanced Management Accounting. Accessed via Google Books.
External analysis
An external analysis is the second component of the strategic management process. It is an analysis
of the organizations external operating environment. The purpose of this analysis is to identify the
strategic opportunities and threats in the organizations operating environment that will affect how it
pursues its mission.
The following environments should be examined when undertaking an external analysis:
