MNG3701 EXAM STUDY NOTES

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STRATEGY PLANNING (MNG3701) NOTES



All about Strategic management
Strategic management: refers to a deliberate effort by the organisation to
allocate resources in such a way that the organisation could realise an above-
average returns in order to have a competitive advantage over its competitors over
long-term for the wealth maximisation of all its stakeholders.
The purpose of strategic management is to ensure that the organisation applies the
following four key elements of a successful strategy:
 A clear and consistent long-term strategic direction in terms of what the
organisation wants to achieve in future.
 A profound understanding of the competitive environment, to ensure that
the organisation is able to align itself with opportunities and to deal with
threats as effectively as possible.
 An objective knowledge of the key resources and capabilities that the
organisation possess, as well as an understanding of its value for the
organisation, to allow the organisation to build on these and develop a
distinct advantage.
 The proper alignment of the organisation's structure, systems, culture and
functional and operational management to ensure the effective
implementation of strategic plans, projects and initiatives.


Strategic management is ultimately about consistently aligning the organisation
with its internal and external environments.




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