MNG3701 Notes
,STRATEGIC PLANNING
(MNG3701)
Topic 1
(Explain what strategic management is and how it fits into the contemporary business
environment)
Question 1
Explain what is meant by the concept strategic management (5)
• A set of managerial decisions and actions that determines the long term performance of
an organisation.
• It includes environmental scanning, strategic formulation, strategy implementation,
evaluation and control.
• To create sustain competitive advantages and to achieve the organisation objectives.
• It is about maximization of all stakeholders’ wealth and not only profit maximization.
• It creates new and different opportunities for tomorrow.
Question 2
Diagrammatically depict and explain the strategic planning process (10)
Explanation of the strategic planning process
The strategic planning process is a thinking stage.
It starts with the strategic direction (vision & mission statements and strategic intent).
Internal and external environmental analyses are conducted to identify strengths, weaknesses,
opportunities and threats.
The long-term goals are formulated and then strategy selection takes place.
Question 4
1|Page
, Differentiate between the three phases of the strategic management process (10)
3 Step Strategic planning process
1. The strategic planning is a thinking stage. It starts with the vision and mission
statements. Internal and external environmental analyses are done to identify strengths,
weaknesses, opportunities and threats. The long-term goals are formulated and then
strategy selection takes place.
2. Strategy implementation is the action stage of the strategic management process. This is
where the chosen strategies are implemented through different drivers and instruments.
3. Strategic control- The last stage of the strategic management process is strategic control.
This can be seen as the checking stage. In this stage, management would evaluate the
success/failure of the chosen strategies against strategic objectives.
Question 5
With reference to the different strategic planning champions, explain who is involved in the
strategic management process. (5)
Social craftsperson (SC) has to do with the ability to integrate different expectations from
different groups together. An SC also has the ability to be sensitive to tension that might
arise in the process of reaching a common ground.
Artful interpreter (AI) has enough understanding of the local norms, routines and
positions of other role players to be able to adjust the strategic planning process according to
the rules of the local game. It follows that there should be an acknowledgement that there is
no one universal strategic planning practice that works in all contexts.
Known strangers (KS) are associated with maintaining a balance between closeness and
distance to the other role players in the strategic planning process.
Question 6
In tabular format, explain the different views of strategic management. (5)
Traditional View Emerging View
View Strategy as fit with resource Strategy as stretch and leverage
Strategy as positioning in existing
Industry Space Strategy as creating new industry space
industry space
Strategy as a top management Strategy as a total and continuous
Responsibility
activity organisational process
Strategy as an analytical and
Exercise Strategy as an analytical exercise
organisational exercise
Strategy as extrapolating from the
Direction Strategy as creating the future
past
2|Page
,STRATEGIC PLANNING
(MNG3701)
Topic 1
(Explain what strategic management is and how it fits into the contemporary business
environment)
Question 1
Explain what is meant by the concept strategic management (5)
• A set of managerial decisions and actions that determines the long term performance of
an organisation.
• It includes environmental scanning, strategic formulation, strategy implementation,
evaluation and control.
• To create sustain competitive advantages and to achieve the organisation objectives.
• It is about maximization of all stakeholders’ wealth and not only profit maximization.
• It creates new and different opportunities for tomorrow.
Question 2
Diagrammatically depict and explain the strategic planning process (10)
Explanation of the strategic planning process
The strategic planning process is a thinking stage.
It starts with the strategic direction (vision & mission statements and strategic intent).
Internal and external environmental analyses are conducted to identify strengths, weaknesses,
opportunities and threats.
The long-term goals are formulated and then strategy selection takes place.
Question 4
1|Page
, Differentiate between the three phases of the strategic management process (10)
3 Step Strategic planning process
1. The strategic planning is a thinking stage. It starts with the vision and mission
statements. Internal and external environmental analyses are done to identify strengths,
weaknesses, opportunities and threats. The long-term goals are formulated and then
strategy selection takes place.
2. Strategy implementation is the action stage of the strategic management process. This is
where the chosen strategies are implemented through different drivers and instruments.
3. Strategic control- The last stage of the strategic management process is strategic control.
This can be seen as the checking stage. In this stage, management would evaluate the
success/failure of the chosen strategies against strategic objectives.
Question 5
With reference to the different strategic planning champions, explain who is involved in the
strategic management process. (5)
Social craftsperson (SC) has to do with the ability to integrate different expectations from
different groups together. An SC also has the ability to be sensitive to tension that might
arise in the process of reaching a common ground.
Artful interpreter (AI) has enough understanding of the local norms, routines and
positions of other role players to be able to adjust the strategic planning process according to
the rules of the local game. It follows that there should be an acknowledgement that there is
no one universal strategic planning practice that works in all contexts.
Known strangers (KS) are associated with maintaining a balance between closeness and
distance to the other role players in the strategic planning process.
Question 6
In tabular format, explain the different views of strategic management. (5)
Traditional View Emerging View
View Strategy as fit with resource Strategy as stretch and leverage
Strategy as positioning in existing
Industry Space Strategy as creating new industry space
industry space
Strategy as a top management Strategy as a total and continuous
Responsibility
activity organisational process
Strategy as an analytical and
Exercise Strategy as an analytical exercise
organisational exercise
Strategy as extrapolating from the
Direction Strategy as creating the future
past
2|Page
