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Strategic management - Coggle Diagram
Strategic management
Unit 1. Strategic Administration
Definition
Planning is the process of establishing objectives and choosing the most appropriate means to achieve them before taking action.
The beginning
It was not until the Second World War that the idea emerged that planning is strategic and that the implementation of these plans constitute an independent administrative process.
The process
The process consists of two phases:
Planning: This encompasses both the process for setting goals and the process for formulating strategies.
Implementation: it is the name we usually use for actions based on this type of planning.
Strategy Levels
Corporate: The corporate-level strategy is formulated by top management to monitor the interests and operations of organizations that are comprised of more than one line of business.
Business Unit: refers to the administration of the interests and operations of a particular line of business.
Functional Level: they create a framework for the managers who are in charge of each function (for example, marketing or production), to put into practice the strategies of the business unit and those of the company
Unit 2. Strategic Planning
Why do Strategic Planning?
It is because it provides the theoretical framework for action found in the mindset of the organization and its employees, which enables managers and other individuals in the company to similarly evaluate strategic situations, analyze alternatives with a common language, and decide. on actions (based on a set of shared opinions and values) that must be undertaken within a reasonable period of time.
What is not Strategic Planning?
First and foremost, it is not about forecasting. It is not a simple application of quantitative techniques for business planning.
The Process of Envisioning the Future
Through this process, individuals or groups develop for themselves or their organizations a vision or dream of the future condition, which is clear and powerful enough to provoke and maintain the necessary actions in order to make it come true. What is necessary, in short, is to have a vision: a shared dream.
Mission Formulation
The mission describes the day to day of the company, what the company does today. It consists of giving clarity of focus to the members of the organization, making them understand how what they do is related to a greater purpose.
Unit 3. Implementation of the Strategy
Adequacy between Structure and Strategy
The success of the implementation depends, in part, on the way in which the activities of the organization are divided, organized and coordinated. It is logical to assume that the chances of success of an organization's strategy are much greater when its structure and strategy match.
Culture and Strategy
When the culture (collective personality of an organization) of an organization is congruent with its strategy, it is much easier to implement the strategy. It is impossible to apply a strategy successfully if it is opposed to the culture of the organization.
How to make the strategy operational?
Operational plans fall into two general categories. One-time plans are designed with the idea that they will dissolve when they have reached specific goals, that they are not repeated. On the other hand, permanent plans represent a standardized position to handle predictable situations, which are repeated.
The Role of the CEO (Chief Executive Officer o Gerente General)
The role CEOs play in formulating strategies makes them especially important for implementation. First, CEOs interpret strategy and act as last resort judges when managers disagree on implementation. Second, CEOs represent (through their words and actions) the degree of intensity of the organization's commitment to a strategy. Third, CEOs are a source of motivation and provide intangible incentives that go beyond compensation or bonuses.
Unit 4. The Competitive Advantage
The Competitive Advantage
It lies in the many discrete activities that a company performs in the design, production, marketing, delivery and support of its products.
Source of Competitive Advantage
Competitive advantage is fundamentally born from improvement, innovation and change.
Competitive advantage spans the entire value system.
Sustaining Competitive Advantage
Competitive advantage is only sustained by relentless improvement.
Ultimately, sustaining the advantage requires implementing strategies with an international focus.
The Challenge of Innovation
We'll consider some of the ways a company can create the necessary momentum for innovation:
1.Look for buyers facing difficult circumstances.
Establish standards that overcome the most serious obstacles arising from the regulations or regulations assigned to the products.
Have relationships with top-notch suppliers that operate internationally and locally.
Give employees the treatment that corresponds to permanent staff.
Make prominent competitors into motivators.