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STRATEGIES MANAGEMENT - Coggle Diagram
STRATEGIES MANAGEMENT
Basic concept
Strategic formulation
(How to go - Developing long-range plans)
Mission - reason for existence
Objective - What results to accomplish by when
Strategies - Plan to achieve the mission and objectives
3 types
Corporate strategy
(3 main categories: stability, growth and retrenchment (the reduction of costs or spending in response to economic difficulty)) - how business can be managed to achieve synergy (addresses a firm's portfolio (or gp) of business.)
Business strategy
- How to compete in a given business to attain competitive advantage.
Differentiation
Focusing on narrow or industrywide market segment
Cost leadership
Functional strategy -
Policies - Broad guidelines for decision making
Strategic Implementation
Budgets - Costs of the programs
Procedures - sequences of steps needed to do the job
Programs and tactics - Activities needed to accomplish a plan
Environmental scanning (gathering information)
External
Natural environmental - climate and resources
Societal environmental (general forces) - economic, sociocultural, economic, technological
Task environmental (industry) - suppliers, competitors, communities, customers, creditors, government
Internal
Structure
Culture
Resources
Evaluation and control
Performances - actual results
Definition
: involves
Decision
Formulation
Action
Implementation of strategy
Analysis
Strategic goals (vision, mission, strategic objectives)
Internal and external environment
Key attributable
Needs to incorporate short-term and long-term perspectives
Recognizes trade-offs between efficiency and effectiveness.
Include multiple stakeholders in decision making
Directs the organization toward overall goals and objectives
Phases
2: Forecast-based planning
3: Externally oriented (strategic planning)
1: Basic financial planning
4: Strategic management