MNG3701
Strategic
planning 3A
Notes
, MNG3701 – Strategic planning 3 – Notes
Lesson 1 - The relationship between general management principles and strategic management
• Purpose of business → To create value
• Stakeholders – person/group of people that have interest in an organization and its activities
o Internal stakeholders – stakeholders who work directly within an organization. E.gs:
▪ Shareholders/business owners
▪ Investors
▪ Employees
▪ Management
o External stakeholders – individuals of groups who do not work directly within the
organization but who are affected by the strategies, plans and actions of the
organization. E.gs:
▪ Community
▪ Government
▪ Activist groups
▪ Non-profit organisations
▪ Competitors
▪ Media
▪ Industry associates
▪ Organized labour
▪ Customers
▪ Suppliers
▪ Analysts
▪ Consultants
▪ researchers
• Businesses are expected to perform in 3 areas (triple-bottom-line)
o Be profitable
o Take responsibility for the physical environment in which it operates (environmental
responsibility) (planet)
o Meet its social responsibilities towards the community in which it operates (people)
• Manager → a person who is responsible for running a part of or an entire organization
• Management → the process of working with and through others to achieve organizational
objectives in a changing environment
• Management process → the process of working with and through others to achieve
organizational objectives in a changing environment
o 4 major characteristics are:
▪ Management is a process
• Management functions:
o Planning – determines organisation’s vision, mission, strategic
direction and goals
▪ Strategic plans
▪ Tactical plans
▪ Operational plans
Strategic
planning 3A
Notes
, MNG3701 – Strategic planning 3 – Notes
Lesson 1 - The relationship between general management principles and strategic management
• Purpose of business → To create value
• Stakeholders – person/group of people that have interest in an organization and its activities
o Internal stakeholders – stakeholders who work directly within an organization. E.gs:
▪ Shareholders/business owners
▪ Investors
▪ Employees
▪ Management
o External stakeholders – individuals of groups who do not work directly within the
organization but who are affected by the strategies, plans and actions of the
organization. E.gs:
▪ Community
▪ Government
▪ Activist groups
▪ Non-profit organisations
▪ Competitors
▪ Media
▪ Industry associates
▪ Organized labour
▪ Customers
▪ Suppliers
▪ Analysts
▪ Consultants
▪ researchers
• Businesses are expected to perform in 3 areas (triple-bottom-line)
o Be profitable
o Take responsibility for the physical environment in which it operates (environmental
responsibility) (planet)
o Meet its social responsibilities towards the community in which it operates (people)
• Manager → a person who is responsible for running a part of or an entire organization
• Management → the process of working with and through others to achieve organizational
objectives in a changing environment
• Management process → the process of working with and through others to achieve
organizational objectives in a changing environment
o 4 major characteristics are:
▪ Management is a process
• Management functions:
o Planning – determines organisation’s vision, mission, strategic
direction and goals
▪ Strategic plans
▪ Tactical plans
▪ Operational plans
