Summary Business Management 1B 5112 Chapter 16

LU6 Chapter 16: Introduction to Strategic Management


Theme 1: Importance of Strategic Management
LO1: Explain the concept of strategic thinking and strategic management


Theme 2: The Strategic Management Process
LO2: Discuss the importance of and activities involved in each step in the strategic
management process
LO3: Explain the importance of alignment in strategic management
LO4: Evaluate a vision and mission statement of an organisation
LO5: Identify the strategy of an organisation using Porter’s generic strategy
framework




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, Theme 1: Importance of Strategic Management
LO1: Explain the concept of strategic thinking and strategic management
 Strategic management is responsible for ensuring that all functional areas are
working towards the same goal
 Look at the org as a whole and ask 3 key questions:
o Where are we now?
o Where do we want to be?
o How are we going to get there?
 Strategic management = the ongoing process of developing, implementing and
monitoring appropriate strategies




Theme 2: The Strategic Management Process
LO2: Discuss the importance of and activities involved in each step in the strategic
management process


 Org have to adapt to chg continuously due to changing consumer demands and
competition for market share
 Must adapt to:
o Chgs in external environment – opportunities/threats
o Chgs in internal environment – strengths and weaknesses
o Extent to which chosen strategies have been successful
 Strategic management is thus done on a continuous basis – not just once




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