Get premium membership and access questions with answers, video lessons as well as revision papers.
Managing activities internal to the firm are only part of the modern executives responsibilities. The executive must also respond to changes posed by the external environment as well. To deal effectively with everything that affects the growth of a firm, executives employ management processes that will position the firm optimally in its competitive environment. They strive to maximize the anticipation of environmental changes and of unexpected internal and competitive demands. They place emphasis on external forecasting and external considerations in the formulation and implementation of plans.
This all encompassing approach is known as strategic management which may be defined as “The set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives” or “The development, implementation and control of agreed strategies.”
Strategic management comprises the following activities
Strategic Analysis
(i) Formulate the company’s mission, including its purpose and philosophy. The goals and objectives of the company must also be developed.
(ii) Assess the external environment to identify opportunities and threats. This assessment covers both the competitive environment and the general environmental factors.
(iii) Development of a company profile that reflects its internal capabilities, resources and weaknesses. This is internal analysis.
(iv) Analysis of the company’s options by matching its internal resources with the threats and opportunities in the external environment. This corporate appraisal should bear in mind the objectives to be achieved by the company as defined in step (i).
Strategic formulation and choice
Development of a range of alternative options/alternatives that the company can undertake.
(v) Identify the most desirable option by evaluating the various options in light of the mission statement.
Strategic implementation
(vi) Implement the selected strategy by means of budgeted resource allocations, operational plans paying attention to the organization culture, structure and developing appropriate functional strategies.
Strategic control
(vii) Review and control the strategy implementation process by assessing actual performance against plans.
Strategy formulation in a profit making and a non-profit making organization follow the same procedures as above. The only difference that arises is that a non-profit making organization does not have competitors in the strict sense of the word. Thus assessment of the external environment will not be done in the same way as in a profit making organization. A non-profit making organization will be concerned with attracting funds and utilizing these funds well. The mission will also be different since a non profit organization aims at providing a public good.
Kavungya answered the question on April 29, 2021 at 19:02
- The production process is one by which goods and services are brought into existence. Write a brief account of the planning and operating decisions and...(Solved)
The production process is one by which goods and services are brought into existence. Write a brief account of the planning and operating decisions and activities, which the production manager is likely to encounter.
Date posted: April 29, 2021. Answers (1)
- What factors determine the optimum span of management and the number of levels of management in an organization?(Solved)
What factors determine the optimum span of management and the number of levels of management in an organization?
Date posted: April 29, 2021. Answers (1)
- Define span of management.(Solved)
Define span of management.
Date posted: April 29, 2021. Answers (1)
- “The nature of strategic management differs according to the type of organizations.”
Discuss this statement with respect to the following types of organizations:
(a) Public sector organizations....(Solved)
“The nature of strategic management differs according to the type of organizations.”
Discuss this statement with respect to the following types of organizations:
(a) Public sector organizations.
(b) Non-profit organizations.
Date posted: April 29, 2021. Answers (1)
- In order to enhance the chances of a new product succeeding, the company should follow a systematic new product development process.
Highlight the major stages in...(Solved)
In order to enhance the chances of a new product succeeding, the company should follow a systematic new product development process.
Highlight the major stages in new product development.
Date posted: April 29, 2021. Answers (1)
- Describe the marketing strategies a firm should adopt in the different stages of a product’s life cycle.(Solved)
Describe the marketing strategies a firm should adopt in the different stages of a product’s life cycle.
Date posted: April 29, 2021. Answers (1)
- Identify and explain the characteristics of an effective management information system.(Solved)
Identify and explain the characteristics of an effective management information system.
Date posted: April 29, 2021. Answers (1)
- Explain the factors that are considered in the design of an organization structure.(Solved)
Explain the factors that are considered in the design of an organization structure.
Date posted: April 29, 2021. Answers (1)
- “Outsourcing some of an organization’s operations could lead to increased productivity.” Discuss.(Solved)
“Outsourcing some of an organization’s operations could lead to increased productivity.” Discuss.
Date posted: April 29, 2021. Answers (1)
- The primary purpose of performance measurement is to measure how well an organization or department is accomplishing its mission, goals and objectives.
Describe the steps to...(Solved)
The primary purpose of performance measurement is to measure how well an organization or department is accomplishing its mission, goals and objectives.
Describe the steps to be followed in the implementation of a performance measurement system in an organization.
Date posted: April 29, 2021. Answers (1)
- Briefly explain the key requirements for successful project management.(Solved)
Briefly explain the key requirements for successful project management.
Date posted: April 29, 2021. Answers (1)
- Benchmarking can provide a company with a continuous and competitive advantage if it is used effectively.
(i) Describe the various types of benchmarking.
(ii) Highlight the advantages...(Solved)
Benchmarking can provide a company with a continuous and competitive advantage if it is used effectively.
(i) Describe the various types of benchmarking.
(ii) Highlight the advantages of benchmarking.
Date posted: April 29, 2021. Answers (1)
- The success of a business plan depends as much on the clarity and realization of the thought behind it as on how it is expressed...(Solved)
The success of a business plan depends as much on the clarity and realization of the thought behind it as on how it is expressed and put together.
List and explain the sequential framework for compiling a business plan.
Date posted: April 29, 2021. Answers (1)
- The training programme for the first year graduate management trainees of PQR Bank Ltd., a major commercial bank with a country wide branch network, consists...(Solved)
The training programme for the first year graduate management trainees of PQR Bank Ltd., a major commercial bank with a country wide branch network, consists of classroom training and on -the-job training. The objectives of the training are to ensure that new staff members learn fundamental concepts in banking and develop technical, analytical and communication skills that when combined with further experience and training, will help them achieve maximum potential in the organization.
Classroom training is used to introduce concepts and theories applicable to the work environment. Although new management trainees receive this special training, actual work experience is the principal means by which they develop the skills necessary to become good bank managers.
Managers in different departments and branches of the bank are responsible for on-the-job training. They assign duties to the trainees and review their progress. Owing to the fact that managers are on performance contracts, their attention is usually not focused on the work being done by the trainees. The managers therefore, assign routine to the trainees with little or no through to furthering the career development of these employees. This has resulted in minimal preparation of the trainees for the learning the job.
Recently, the bank has lost several capable first year management trainees. The reason most of them gave for leaving was that they were not learning or advancing in their careers.
Required:
(a) Explain the limitations of on-the-job training offered by PQR Bank Ltd.
(b) Describe the measures that PQR Bank Ltd. should put in place in order to reduce the high turnover of the management trainees.
Date posted: April 29, 2021. Answers (1)
- Outline the activities that are included in a public relations programme of an organization.(Solved)
Outline the activities that are included in a public relations programme of an organization.
Date posted: April 29, 2021. Answers (1)
- Explain the importance of public relations to an organization.(Solved)
Explain the importance of public relations to an organization.
Date posted: April 29, 2021. Answers (1)
- Explain the three levels of strategy and the characteristics of strategic management decisions at each level.(Solved)
Explain the three levels of strategy and the characteristics of strategic management decisions at each level.
Date posted: April 29, 2021. Answers (1)
- Discuss the barriers to effective decision making in an organization and suggest ways in which management can overcome such barriers.(Solved)
Discuss the barriers to effective decision making in an organization and suggest ways in which management can overcome such barriers.
Date posted: April 29, 2021. Answers (1)
- “The centralization of procurement in a large company leads to greater efficiency.”
Discuss.(Solved)
“The centralization of procurement in a large company leads to greater efficiency.”
Discuss.
Date posted: April 29, 2021. Answers (1)
- “Procurement is an important aspect of production management.”
Explain how an efficient procurement policy benefits an organization.(Solved)
“Procurement is an important aspect of production management.”
Explain how an efficient procurement policy benefits an organization.
Date posted: April 29, 2021. Answers (1)