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MNG3701 - Chapter 1 - 7 summarised notes
Strategic Planning IIIA (University of South Africa)
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Chapter 1
Defining strategic management:
Is the process whereby all the organisational functions and resources are integrated and coordinated to
implement formulated strategies which are aligned with the environment, in order to achieve the long
term goals of the organisation and therefore gain a competitive advantage through adding value for the
stakeholders.
Defining competitive advantage:
Competitive advantage is the edge that an organisation has over others and outperforms them by
uniquely combining their resources and capital.
Defining strategy:
As an effort or deliberate action that an organisation implements to outperform rivals.
Views on strategy:
Traditional view Emerging view
View Strategy as fit with resource Strategy as stretch and leverage
Industry space Strategy as positioning in existing Strategy as creating new industry
industry space space
Responsibility Strategy as a top management Strategy as a total and
activity continuous organisational
process
Exercise As an analytical exercise As an analytical and
organisational exercise
Direction Strategy as extrapolating from Strategy as creating the future
the past
3 step Strategic planning process
Strategic planning -It is the first stage in SPP and focuses on the organisations strategic direction.
Involves the formulation or review of a company’s vision, mission and long term goals. It also evaluates
the environments in which the organisation operates to identify SWOT.
Strategy implementation- Once an organisation has decided on the destination and the strategy it will
take to get there, it obviously needs to move towards that specific destination. Is the action stage on
strategic management process and requires input from everyone in the organisation.
Strategic control- Aims to assess the progress made towards achieving the desired outcome. Gives
feedback and alerts top management to problems before a situation becomes critical.
Benefits of strategic management
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Higher profitability
Higher productivity
Improved communication across the different functions in the organisation
Empowerment
Discipline and a sense of responsibility to the management of the organisation
More effective time management
More effective resource management
Strategic management
Risks of strategic management
Time
Unrealistic expectations from managers and employees
The uncertain chain of implementation
Negative perception of strategic management
No specific goals and measurable outcomes
Culture change
Success groove
Diagrammatically depict the strategic planning process. (7)
NB: During exam we may ask this differently, for example: Diagrammatically
depict the position of Long term goals in the strategic planning process.
Strategic direction: vision,
mission, strategic intent
Internal External
environmental environmental
analysis analysis
Strengths & Opportunities &
weaknesses threats
Formulation of
Shade the required part
long-term goals
Strategy selection
Generic strategies & grand
strategies
Downloaded by Simone Spuyt ()
MNG3701 - Chapter 1 - 7 summarised notes
Strategic Planning IIIA (University of South Africa)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Simone Spuyt ()
, lOMoARcPSD|3873755
Chapter 1
Defining strategic management:
Is the process whereby all the organisational functions and resources are integrated and coordinated to
implement formulated strategies which are aligned with the environment, in order to achieve the long
term goals of the organisation and therefore gain a competitive advantage through adding value for the
stakeholders.
Defining competitive advantage:
Competitive advantage is the edge that an organisation has over others and outperforms them by
uniquely combining their resources and capital.
Defining strategy:
As an effort or deliberate action that an organisation implements to outperform rivals.
Views on strategy:
Traditional view Emerging view
View Strategy as fit with resource Strategy as stretch and leverage
Industry space Strategy as positioning in existing Strategy as creating new industry
industry space space
Responsibility Strategy as a top management Strategy as a total and
activity continuous organisational
process
Exercise As an analytical exercise As an analytical and
organisational exercise
Direction Strategy as extrapolating from Strategy as creating the future
the past
3 step Strategic planning process
Strategic planning -It is the first stage in SPP and focuses on the organisations strategic direction.
Involves the formulation or review of a company’s vision, mission and long term goals. It also evaluates
the environments in which the organisation operates to identify SWOT.
Strategy implementation- Once an organisation has decided on the destination and the strategy it will
take to get there, it obviously needs to move towards that specific destination. Is the action stage on
strategic management process and requires input from everyone in the organisation.
Strategic control- Aims to assess the progress made towards achieving the desired outcome. Gives
feedback and alerts top management to problems before a situation becomes critical.
Benefits of strategic management
Downloaded by Simone Spuyt ()
, lOMoARcPSD|3873755
Higher profitability
Higher productivity
Improved communication across the different functions in the organisation
Empowerment
Discipline and a sense of responsibility to the management of the organisation
More effective time management
More effective resource management
Strategic management
Risks of strategic management
Time
Unrealistic expectations from managers and employees
The uncertain chain of implementation
Negative perception of strategic management
No specific goals and measurable outcomes
Culture change
Success groove
Diagrammatically depict the strategic planning process. (7)
NB: During exam we may ask this differently, for example: Diagrammatically
depict the position of Long term goals in the strategic planning process.
Strategic direction: vision,
mission, strategic intent
Internal External
environmental environmental
analysis analysis
Strengths & Opportunities &
weaknesses threats
Formulation of
Shade the required part
long-term goals
Strategy selection
Generic strategies & grand
strategies
Downloaded by Simone Spuyt ()
