STRATEGIC MANAGEMENT

1. What is strategic management?

It has 3 main steps:
Strategy formulation strategy implementation
strategy evaluation

it emphasizes the analysis of the external

and internal environment of a company in
order to achieve the companys objectives.
It refers to the actions taken by a manager to
ensure that the organization is better off than
its competitors/able to fend off competitive
action from competitors.

2. Difference between business strategy and

military strategy.
Business strategy
-based
on
the
assumption of conflict.
-main purpose to gain
competitive advantage.

Military strategy
-based
on
the
assumption
of
the
competition.
-main purpose to gain
competitive advantage.

3. Strategic management process- 3 major

component/process flow chart.
define mission
& vision
perfome
situational
analysis
establish
objectives
formulate
strategies
implement
strategies
evaluate &
correct

Strategic formulation

It involves designing & developing

strategies to achieve the firms mission n
vision.
Also identifying the firms external
opportunities and threats, determining
the firms internal strengths n
weaknesses and establishing objectives
to achieve the firms mission & vision.
Strategy implementation
Once the organization has developed
specific strategy alternatives,
implementing the strategy is the next
stage.
Its means executing the strategies, where
the business strategies is translated into
action.
It includes allocating resources to
execute the formulated strategies,
preparing budgets and developing and
utilizing information systems and
employees.
Strategy evaluation
The final stages of the process is strategy
evaluation which seeks to determine
which strategies worked and which were
not successful.
If the strategies formulated did not result
in the objectives being met or the actual
results are not in line with the actual
goals, then the strategy should be
modified/reformulated.

4. What is external audit?

External audit is the identification &
evaluation of those trend and events that
are beyond the control of an
organization.
The external audit point out the
important of opportunities & threats that
comes in front of the organization.

5. What is
difference.

vision/mission

statement

&

Vision Statement
Vision statement is a
statement about what
the organization wants
to become.

Mission statement
Mission statement is a
statement which deals
with questions such as
What is our business?
The mission statement
also defines the longterm vision of the
organization in terms of
what it wants to be and
whom it wants to serve.
Difference
a vision statement has
A mission is concerned
to be simple,
with the way an
understandable and
organization is
shared by everyone in
managed today, with
the organization. It
its purpose or reason
must be sufficiently
for being, and also the
clear and concise that
purpose or reason for
everyone in the
the organizations
organization
existence.
understands it.

6. What is strategic planning and strategic

implementation.

7. What is industry analysis?

Industry analysis is a group of firm that produce
similar products or sell the same product to the
same market.
It also to assess how the forces of the
organizations immediate environment affect the
attractiveness / profitability potential of the firm.

8. What is BOS and 6 principles of BOS

BOS :
- create uncontested market space.
- making the competition irrelevant.
- BOS is the simultaneous pursuit
differentiation and low cost.

of

Principles of BOS:
1) Reconstruct market bound
2) Focus on the big picture
3) Reach beyond existing demand
4) Get the strategic sequence right
5) Overcome organizational hurdles
6) Build execution into strategy

Strategic planning:

9. What is external variables/analysis.

can be explained as a process practised in an

organization, which enables the organization to
identify the direction and path to achieves its long
term objectives.

An external analysis is the process of scanning

and evaluating the organizations general
environment.

Strategic implementation:
Is the execution of a strategic plan. The team
proceeds to the plan as much as possible,
although unforeseen (tak diduga) events and
unintended consequences are sure to occur.

The purpose external analysis is to provide

managers with a better understanding of the
organizations opportunities and threats.