Strategic Management
Strategic Management
Strategic Management
Set of flashcards Details
| Flashcards | 25 |
|---|---|
| Language | English |
| Category | Micro-Economics |
| Level | Primary School |
| Created / Updated | 03.11.2011 / 24.11.2014 |
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What's the origin of the term „strategy“
Greek: „stratos“ = army, „agos“ = leader
Originally: „Art and science of operating armed forces“, i.e. planning
and implementation of military operations.
What are the overall aspects of the term „strategy“
- fields of activity
- future oriented
- competitor related
- relation to environmental situations
- relation to company resources
- comprehensive alignment of company activities
- „big decisions“
- not easily reversible
Name the aspects of the term strategy by Weick 1995; Luhmann 1984
siehe Bild
Name the basic questions of strategic planning
In which business segments/markets shall we operate/compete?
- Definition of Corporate Strategy
- Where to compete?
With which actions do we compete in particular markets?
- Definition of Business Strategy
- How to compete?
What are our core capabilities?
What are the levels of strategy
Corporate Strategy:
- Definition of business segments
- Allocation of ressources
Business Strategy:
- Positioning in selected business segments
- How to compete in each business segment
Draw: Strategic Management Process
see picture
Name the Historical Development of Strategic management
1950 Budgeting
1960 Long-term Planning
1970 Strategic Planning
1980 Implementation
1990 Strategic Management
What are the basic perspectives within the scope of Strategic Management
1) Plan-determined / plan-oriented management
2) Descriptive strategy research
3) Market based / Resource based approach
What is the key question of the plan-determined / plan-oriented perspective
Which significance has strategic planning
within the management process?
What is the assumption of planned determined management
Planning can anticipate all significant (future) problems and, by collecting the necessary informations, solve them in terms of a coherent, lasting strategy.
=> - Management according to plan: primacy of planning
- The plan is meant to anticipate all information and (future) events
- Complexity can be handled through thorough analysis
- Unplanned actions result in disruption and dysfunction
How does Strategy evolve in prescriptive/ descriptive Research of Strategy
prescriptive: systematically, analytic-rational
descriptive: partly emergent (unplanned)
What are the reasons to choose descriptive approaches?
Internal dynamics of organizations (internal complexity)
- self-organized processes
- decisions "grow"
- invisible forces
- unintendet side-effects
- flexible reaction
Draw the Planned and emergent strategy
(by Mintzberg)
see picture
Name the most common descriptive approaches
- Structuralist perspective
- Political processes
- Organized anarchy („Garbage Can“)
- Cognitive perspektive
How is the attempt to combine prescriptive und descriptive approaches of strategy called?
Logical incrementalism
What is the key question of the market based / resource based approach
What is the source of competitive advantage?
Explain the market based and the ressource based approach
Market based: advantages due to correct prediction of market trends (identification and realisation of market chances)
Resource based: advantages due to singular company resources Assumption: imperfect factor markets
Explain the classic understanding of strategy! What are the limitations of the classical concept?
Characteristic
Strategies are meant to position corporations in market places
-> SWOT concept
Strategies determine resource allocation
Limitations:
1) Unknownn future
2) Problem of double contingency (expectation of expectation)
3) static vs. dynamic viewpoint
Name the 3 strategic goals
1. Corporate policies: general principles/mission statement
2. Business goals: derived strategic goals
3. Operationalization of goals
What is the purpose of: corporate policies: general principles? What are key questions?
Define relation between company and interest groups
Questions:
?Who belongs to the interest group?
?What interests are formulated ?
?How to react to interests?
What are the key questions of Strategic Goals
1) How do we implement the aspired corporate policies?
2) What do we have to achieve / strive for?
Explain the Operationalization of Goals
see table
Define what is the function of goals
Normative idea about a company‘s future situation which has to be implemented
Name 7 functions of goals
1) Selection
2) Orientation
3) Controlling
4) Coordination
5) Motivation and Incentive
6) Assessment
7) Monitoring
Name the two fundamentally different answers to what shoul be the content of the strategic goals
Two fundamentally different answers:
1. Conventional (micro-) economic point of view
2. Stakeholder view
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