MNG3701 Exam Study Guide

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,
, CONTENTS

Page

LESSON 1: The relationship between general management principles and strategic
management

1

1.1 The purpose of a business organisation 2
1.2 The primary outcomes of the business organisation 3
1.3 The role of managers in achieving the outcomes of the organisation 4
1.4 The various levels and areas of management 7
1.5 The hierarchy of organisational plans 9
1.6 The difference between a competitive advantage, a
sustainable competitive advantage and a transient competitive advantage 11
1.7 Conclusion 14

LESSON 2: The role of strategic management in an organisation 16

2.1 Introduction 16
2.2 Strategic management and its components 17
2.3 The universal principles of strategic management 19
2.4 The role of strategic management in realising the desired outcomes
of an organisation 20
2.5 The different levels of strategy in the organisation 21
2.6 The meaning of strategic success 22
2.7 A contemporary strategic management framework 23
2.8 Conclusion 24

LESSON 3: Setting strategic direction 26

3.1 Introduction 26
3.2 The process perspective on strategic management 27
3.3 Criticising the process perspective on strategic management 27
3.4 Explain the role of strategic direction in strategic planning 29
3.5 The last two steps in the strategic planning process 36
3.6 The last two phases in strategic management 37
3.7 Conclusion 37

LESSON 4: Analysing the external environment of the organisation 39

4.1 Introduction 39
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