...FIRST PAGES Part One Overview of Strategic Management The first chapter of this book introduces strategic management, the set of decisions and actions that result in the design and activation of strategies to achieve the objectives of an organization. The chapter provides an overview of the nature, benefits, and terminology of and the need for strategic management. Subsequent chapters provide greater detail. The first major section of Chapter 1, “The Nature and Value of Strategic Management,” emphasizes the practical value and benefits of strategic management for a firm. It also distinguishes between a firm’s strategic decisions and its other planning tasks. The section stresses the key point that strategic management activities are undertaken at three levels: corporate, business, and functional. The distinctive characteristics of strategic decision making at each of these levels affect the impact of activities at these levels on company operations. Other topics dealt with in this section are the value of formality in strategic management and the alignment of strategy makers in strategy formulation and implementation. The section concludes with a review of the planning research on business, which demonstrates that the use of strategic management processes yields financial and behavioral benefits that justify their costs. The second major section of Chapter 1 presents a model of the strategic management process. The model, which will serve as an outline for...
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...|INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD | |[pic] | |ALLIED BANK LIMITED | |FACULTY : FMS | |COURSE TITLE : PRINCIPLE OF MANAGEMENT | |COURSE CODE : MGT-202 | |SUBMITTED TO : SIR HASSAN BIN HAROON | |SUBMITTED BY | |WALEED WAZIR 6021 | |MUHAMMAD SOHAIL 6022 | |FAHAD RAHIM 6023 ...
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...Strategic Management Process Mitchell Jaques MGT/498 August 23, 2011 Dr. Earl Levith Strategic Management Process Strategic management is an essential process for managerial decision making. This is a special process for planning and implementing actions that may determine a company’s long-term performance. This will require a business to conduct internal and external scanning and environmental analysis, strategic implementation is required, evaluation, and control. Strategic management encompasses the use of the SWOT analysis, (Strengths, Weaknesses, Opportunities, and Threats), to incorporate strategic planning and industry analysis (Wheelen & Hunger, 2010). Primary Components of Strategic Management In a normative or prescriptive approach to the strategic management model, we would generally reflect an explicit, planned, and rational approach of the process (Ginter & Duncan, 1985). According to the Ginter & Duncan (1985) website, this model was based of empirical research and creates a broader-based model. In this model there are eight stages of this process: (1) establishing the mission; (2) setting objectives; (3) environmental scanning; (4) identify internal SWOT; (5) formulating alternate strategies; (6) strategy selection; (7) strategy implementation; (8) controlling the strategy to ensure success. While the normative strategy hits all the main components of strategic management, there has been a more modern formula created for the strategic...
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... Yes, I do believe that organizations with proper strategy implemented and managed stand a better chance and have better competitive advantage over their counterparts. Strategic management is used by organizations to analyze and learn from their internal and external environment. It is about going forward (where to from here) It is about establishing a strategic direction. It is about establishing a strategic direction Strategic management is also about implementing strategies that would satisfy customers. The nature of strategy, which needs to be managed, is formulated around the 5 Ps (Louw and Venter 2010:15) Plan, pattern, position, perspective and ploy. As a plan, strategy has been viewed as something that an organization has, and strategy as a perspective viewed as something that people do. Strategy is influenced by extra organizational practices and inter-organizational practices. Therefore there is a reciprocal relationship between intra and extra organizational strategic activities. - Strategy as a plan: Provides overall direction and course of action. As a plan, strategy formulation is a formal process. This approach ahs been criticized for being a rational, top-down approach, hoever research shows that formal planning contributes towards better strategic decision making. - Strategy as a position: concerns the determination of products. As a position, strategy looks downwards and outwards, towards the external competitive market. - Strategy...
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...Strategy and Planning What is Strategy? The term ‘strategy’ proliferates in discussions of business. The term ‘strategy’ is derived from the Greek word ‘stratēgia’, which means the “art of the troop leader”: a plan, course of action, or a set of decisions creating a pattern or a common link. All the successful business enterprises today constantly take in new information about their markets, customers, and operating environments. Then, management uses that knowledge and data to shape new strategic directions, to reorganise how they respond to marketplace demands, and to ensure that their views regarding all aspects of the business are fresh and viable. Strategy is the direction and scope of an organisation over the long-term, which achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholder expectations. What is the difference between Tactics and Strategy? Strategy differs from tactics. Tactics are schemes for specific manoeuvres, whereas strategy is the overall plan for deploying resources to establish a favourable position. An organisation’s strategy consists of the combination of competitive moves and business approaches that managers employ to please customers and achieve organisational objectives. Strategy is a plan or course of action denoting a pattern which evolves a direction for the organisation. It relates to pursuing those activities which move an...
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...Strategic Decision Making in Healthcare Essay Table of Contents Introduction 2 Key Discussion 2 Conclusion 5 References 6 Introduction The development of this essay is based on concentrating on the strategic decision making process used in the context of healthcare organizations. Considering the nature of healthcare, it has been identified as one of the most unique areas of the organization, and also it becomes a most promising field for conducting the research. The formation of this particular study is highly research-oriented as the lack of researches can be observed regarding the healthcare context, especially in the strategic decision making process. Though, it can be noticed among the current researches most of them focusing upon the strategic decision making, but at a whole the numbers are limited regarding the chosen area (Ferrell, Fraedrich and Ferrell, 2008). Therefore, different number of literature framework is adopted for the purpose of formulating the overall study in order to include different views and concepts of various authors in order to facilitate the theoretical and empirical contributions to this particular attempt. Through the development process of the study, different types of advantages and limitations can also be explored out of the theoretical implications which are essentially discussed. Key Discussion The strategic decision making process is thoroughly integrated with the strategic planning process useful for providing guidance...
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...UNIT-2 PLANNING AND DECISION MAKING #Planning: In simple words, planning is deciding in advance what is to be done, when, where, how and by whom it is to be done. Planning bridges the gap from where we are to where we want to go. It involves setting objectives and developing appropriate course of action to achieve this objectives. A plan is a predetermined course of action to achieve a specified goal. It is an intellectual process characterized by thinking before doing. It is an attempt on the part of manager to anticipate the future in order to achieve better performance. Planning is the primary function of management. According to Alford and Beatt, “Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action.” According to Theo Haimann, “Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action for further attempting to achieve a consistent co-ordinate structure of operations aimed at the desired results. #Importance of Planning: 1.Planning helps in efficient Use of Resources: All organizations, large and small, have limited resources. The planning process provides the information top management needs to make effective decisions about how to allocate the resources in a way that will enable the organization to reach its objectives. Productivity is maximized and resources are not wasted on projects with little chance of success. 2. Planning...
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...Explain the importance of decision making for managers at each of the three primary organizational levels along with associated decision characteristics. Ans. The structure of a typical organization is similar to a pyramid and different levels require different information to assist in decision making, problem solving and opportunity capturing. 1.Operational-At the operational level employees develop , control and maintain core business activities required to run the day-to-day operations.Operational decisions are considered structured decisions , which arises in situations where established processes offer potential solutions.Structured decisions are made frequently and are almost repetitive in nature, they affect short-term business strategies .Recording inventory and creating weekly production schedules are examples of routine structured decisions. 2.Managerial – At the managerial level employees are continuously evaluating company operations to hone the firm’s abilities to identify and adapt to change.Managerial decisions cover short and medium range plans ,schedules and budgets alongwith policies,procedures and business objectives of the firm .These types of decisions are considered semi-stuctured decisions ,they occur in situations in which a few established processes help to evaluate potential solutions but not enough to lead to a definite recommended decision.Eg,decisions about producing a new product. 3.Strategic level – At the strategic level , managers develop overall...
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...Chapter 1—Introduction to Accounting Information Systems TRUE/FALSE 1. The three themes of the text are operating systems, e-business, and internal control. ANS: F 2. In an assurance service the accountant will provide the original information used for decision making. ANS: F 3. Financial care for the elderly has been identified by the AICPA as a potential assurance service. ANS: T 4. Wireless technologies was identified as one of the ten most important 2006 technological challenges and opportunities facing CPAs. ANS: T 5. Knowledge of Microsoft Access was identified as one of the ten most important 2006 technological challenges and opportunities facing CPAs. ANS: F 6. Enterprise systems provide complete integration of an organization’s business events and information processing systems. ANS: T 7. An information system consists of an integrated set of computer-based and manual components established to provide information to users. ANS: T 8. Internal control is a process that provides complete assurance that the organization is meeting its objectives, such as efficiency and effectiveness of operations and reliable reporting. ANS: F 9. The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and auditors. ANS: T 10. According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate significant internal controls. ANS: T 11. According to the...
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...departments within an organization. MIS, or Management Information Systems, are used to manage the data created within the structure of a particular business. These systems store the data and allow the business to manipulate this data. It is the study of people, technology, organizations and the relationship among them. MIS can be defined as the study of how individuals, groups and organizations evaluate, design, implement, manage and utilize systems to generate information to improve efficiency and effectiveness of decision making. The concept of MIS gives high regard to the individual and his ability to use information. While analyzing the data, it relies on many academic disciplines. These include the theories, principles and concepts from the Management Science, Psychology and Human Behavior, making the MID more effective and useful. These academic disciplines are used in designing the MIS, evolving the decision support tools for modeling and decision - making. The concept, therefore, is a blend of principle, theories and practices of the Management, Information and System giving rise to single product known as Management Information System (MIS). The Physical view of the MIS can be seen as assembly of several...
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...Center for Effective Organizations WHAT MAKES HR A STRATEGIC PARTNER? CEO PUBLICATION G 09-01 (555) EDWARD E. LAWLER III Center for Effective Organizations Marshall School of Business University of Southern California JOHN W. BOUDREAU Center for Effective Organizations Marshall School of Business University of Southern California Center for Effective Organizations - Marshall School of Business U n i v e r s i t y o f S o u t h e r n C a l i f o r n i a - L o s A n g e l e s, C A 9 0 0 8 9 – 0 8 7 1 (2 1 3) 7 4 0 - 9 8 1 4 FAX (213) 740-4354 http://ceo-marshall.usc.edu What Makes HR a Strategic Partner? Edward E. Lawler III Center for Effective Organizations University of Southern California 3415 S. Figueroa Street., #200 Los Angeles, CA 90089-0871 Tel: 213-740-9814 Email: elawler@marshall.usc.edu John W. Boudreau Center for Effective Organizations University of Southern California 1 What Makes HR a Strategic Partner? Edward E. Lawler III and John W. Boudreau Executive Summary For several decades, the HR function in corporations has been encouraged to become a strategic partner. Data from a longitudinal study of large corporations suggest that HR is not now a strategic partner and that little or no movement toward it becoming one has occurred. An analysis of what HR can do to become a strategic partner shows some clear actions that HR can take. These include talent development in HR, creating corporate centers of excellence, developing the right...
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...Leadership is the capstone segment for the CPA Program professional level. This segment consolidates your learning in the other three compulsory segments, Ethics and Governance, Financial Reporting and Strategic Management Accounting. In the increasingly complex business environment in which organisations operate, characterised by change, uncertainty and escalating competition, the disciplines of strategy and leadership have become critical to successful organisational performance. The aim of this segment is to link the knowledge of management and financial accounting to the concepts of strategy and leadership. Accountants use a variety of technical information to make decisions for the future of the business within an ethical framework of operation. This segment shows that accounting information, ethics, strategy and leadership are applicable to accountants working throughout the world in diverse organisations. As discussed in Ethics and Governance, accounting as a profession is respected internationally and CPAs are employed worldwide. The segment materials address the needs of candidates operating in different international markets in varying roles. This segment builds upon knowledge gained in the other three compulsory segments of the professional level. The concepts of professional ethics and good governance underpin the segment. Candidates who have previously undertaken the Advanced Audit and Assurance or Strategic Management Accounting segments will be familiar with the use...
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...Strategic Planning for a Business MT:460 Management Policies and Strategies – Unit 1 Assignment Katie Bingaman For any company or business to be successful, they will need to have a strategic plan. There are many different components that a business needs to involve to have a strategic plan. The vision, mission and as they say out-of-the-box thinking are different ways to come up with the strategic plan. Without determining where you are headed with a company can be meaningless and by having this strategic planning in process can help you know where your company is heading. (Pirraglia, 2016) Using the SWOT analysis is a good way to prepare for when you are developing your strategic plan. The SWOT analysis determines the Strengths, Weaknesses, Opportunities and Threats that come with have a business or company. By understanding the SWOT analysis it is a good start block to determine what your strategic plan is for your company. (Pirraglia, 2016) The three-tier organizational structure is a hierarchical method used for a large, wide-spread organization and it helps to separate the top-level decision makers. The different top-level decision makers would be the board of directors, the chief officers of financial and the chief officer of operations. When referring to a three-tier it is generally saying that information is able to flow both ways; from between staff and managers and also between then the managers and the executive levels. When working with this structure, managers...
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...Strategic Management & Business Policy, 12e (Wheelen/Hunger) Chapter 1 Basic Concepts in Strategic Management 1) Strategic management is one decision that determines the short-term performance of a corporation. Answer: FALSE Diff: 1 Page Ref: 5 Topic: The Study of Strategic Management 2) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Diff: 2 Page Ref: 5 Topic: The Study of Strategic Management 3) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Diff: 1 Page Ref: 6 Topic: The Study of Strategic Management 4) One of the benefits of strategic management is a clearer sense of vision for the firm. Answer: TRUE Diff: 2 Page Ref: 6 Topic: The Study of Strategic Management 5) To be effective, strategic management must be a formal process. Answer: FALSE Diff: 3 Page Ref: 7 Topic: The Study of Strategic Management 6) Globalization is the internationalization of markets and corporations. Answer: TRUE Diff: 1 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management 7) As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage. Answer: FALSE Diff: 2 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management ...
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...able to identify three broad distinct conceptions of the term. Some authors view it as a sequence of carefully planned consecutive steps, a perspective which can be labeled a process perspective. The second approach treats strategy implementation as a series of concerted (but often parallel) actions and examines these actions from a behavior perspective. Some authors combine the process perspective and behavior or action perspective and form a third approach, which we label as a hybrid perspective. Under the process perspective, implementation is the process that turns plans into action assignments and ensures that such assignments are executed in a manner that accomplishes the plan’s stated objectives (Kotler, 1984). Strategy implementation is an iterative process of implementing strategies, policies, programs and action plans that allows a firm to utilize its resources to take advantage of opportunities in the competitive environment (Harrington, 2006). Under the behaviour perspective, implementation is the actions initiated within the organization and its relationships with external constituencies to realize the strategy (Varadarajan, 1999). Implementation is operationally defined as those senior-level leadership behaviors and activities that will transform a working plan into a concrete reality (Schaap, 2006). In the hybrid perspective, implementation is defined as ‘the sum total of the activities and choices required for the execution of a strategic plan…the process...
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