1
MNG3701 EXAM MAY/JUNE 2014
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 acritical
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 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.
, 3
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.
, 4
Strategic management can be described as a rational approach that organizations use to
achieve strategic competitiveness and competitive advantage.
Strategy formulation is the focus area of most strategic management textbooks and is
considered the ‘thinking’ part of the strategic management process consisting of the following
elements:
The first step in the strategic management process is the establishment of strategic direction.
This usually consists of a vision and mission statement.
Strategic direction leads to more specific strategic objectives. These are typically long- term
in nature and have measurable outcomes.
Strategic choice is the selection of specific robust strategies that will lead the organisation
to achieve its strategic objectives as effectively as possible.
Strategy implementation (or strategic execution) is the ‘doing’ part, where both human and
non-human factors in the organisation are applied to ensure that the strategy is executed in
line with the devised plans. The most important elements of strategy implementation include:
• Leadership and culture – Ensuring that the culture of the organization is aligned
with the strategic choice;
• Competencies – Ensuring human capital possess the right mix of knowledge,
skills and attitudes to support strategy;
• Systems – Procedures or reward systems need to be in place in support of
strategic direction;
• Structure – The organization needs an appropriate structure to successfully
execute the strategy;
• Cascading – By cascading strategic objectives into short-term objectives,
functional strategies and policies, the organization can ensure that functional
objectives and strategies and company policies support strategic direction.
The purpose of strategic control is to ensure that the formulated strategy remains valid and
that the implementation of strategy remains on track.
1.2. Describe the impact of the King Reports regarding corporate governance on
strategic planning. [6]
MNG3701 EXAM MAY/JUNE 2014
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 acritical
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 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.
, 3
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.
, 4
Strategic management can be described as a rational approach that organizations use to
achieve strategic competitiveness and competitive advantage.
Strategy formulation is the focus area of most strategic management textbooks and is
considered the ‘thinking’ part of the strategic management process consisting of the following
elements:
The first step in the strategic management process is the establishment of strategic direction.
This usually consists of a vision and mission statement.
Strategic direction leads to more specific strategic objectives. These are typically long- term
in nature and have measurable outcomes.
Strategic choice is the selection of specific robust strategies that will lead the organisation
to achieve its strategic objectives as effectively as possible.
Strategy implementation (or strategic execution) is the ‘doing’ part, where both human and
non-human factors in the organisation are applied to ensure that the strategy is executed in
line with the devised plans. The most important elements of strategy implementation include:
• Leadership and culture – Ensuring that the culture of the organization is aligned
with the strategic choice;
• Competencies – Ensuring human capital possess the right mix of knowledge,
skills and attitudes to support strategy;
• Systems – Procedures or reward systems need to be in place in support of
strategic direction;
• Structure – The organization needs an appropriate structure to successfully
execute the strategy;
• Cascading – By cascading strategic objectives into short-term objectives,
functional strategies and policies, the organization can ensure that functional
objectives and strategies and company policies support strategic direction.
The purpose of strategic control is to ensure that the formulated strategy remains valid and
that the implementation of strategy remains on track.
1.2. Describe the impact of the King Reports regarding corporate governance on
strategic planning. [6]
