Strategic Management: Concepts and Cases Final Exam 23/24

Benefits of Strategic Management It allows an organization to be more proactive than reactive in shaping its own future. 1. Clear sense of strategic vision of the firm. 2. Sharper focus on what is strategically important. 3. Improved understanding of a rapidly changing environment. FOUR types of Strategies 1. Corporate strategy directs the organization as a whole toward sustainable competitive advantage. 2. Business strategy sets the strategic direction for a single business unit or product line. 3. Functional strategy guides the use of resources to implement business strategy. 4. Operational strategies refers to the methods companies use to reach their objectives. By developing operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process. PLEASE NOTE: Operational-level strategies are applied to business operations as a whole, while functional-level strategies are implemented for each department. Types of Policies 1. HR POLICY (HIRING -FIRING, TRAINING, TRANSFERS, PROMOTIONS, WAGES , INCENTIVES & BONUS). 2. MARKETING POLICY (WHAT TO SELL, WHERE, TO WHOM, THROUGH WHOM, COMMUNICATION. 3. MATERIALS POLICY (QUALITY-QUANTITY, VENDORS, PAYMENT TERMS, STORES & HANDLING DOCUMENTATION). 4. QUALITY POLICY (STANDARDS, CHECKS & CONTROLS, FEEDBACKS, CORRECTIVE MEASURE). Competitive advantage (CA) It means superior performance relative to other competitors in the same industry or superior performance relative to the industry average. "It can mean anything that an organization does better compared to its competitors." Strategists are the individuals who are involved in the strategic management process. Several levels of management may be involved in strategic decision making. However, the people responsible for major strategic decisions are the board of director, president, the chief executive officer, the chief operating officer, and the division managers.