Strategic Management Chapter 1 – Flashcards

1. directs the organization toward overall goals and objectives 2. includes multiple stakeholders in decision making 3. incorporates short term and long term perspectives 4. recognizes trade-offs between efficiency and effectiveness

1. analysis 2. decisions 3. actions

not the same

- is the starting point in the strategic management process - precedes effective formulation and implementation of strategies - clear goals and objectives permit effective allocation of resources - includes the hierarchy of goals

1. Vision - the destination 2. Mission - the roadmap 3. Strategic Objectives - tactics

- successful firms develop bases for competitive advantage > cost > differentiation > focus - sustainability - industry life cycle

- informational control > monitor and scan the environment > respond effectively to threats and opportunities - behavioural control - effective corporate governance

the relationship among various participants in determining the direction and performance of corporations

1. Ecological - renewable resources generated by living systems, such as wood or animal byproducts 2. Material - nonrenewable resources such as mineral ores and fossil fuels 3. Human - people's knowledge, skills, health, nutrition, safety, security, and motivation 4. Social - assets of civil society, such as social cohesion, trust, reciprocity, equity, and other values that provide mutual benefit

1. Globalization 2. Technology 3. Intellectual Capital

- inspiring - overarching - long term - driven by and evokes passion - fundamental statement of the organizations > values > aspiration > goals

- purpose of the company - basis of competition and competitive advantages - more specific than vision - focused on the means by which the firm will compete

- operationalize the mission statement - provide guidance on how the organization can fulfill or move toward the higher goals - SMART - yardstick for rewards and incentives