Final Exam Review Notes Essay

1 strategic Management set of managerial decisions and actions that determines the long haul performance of a association. It includes environmental s dirty dog (both external and internal), outline formulation (strategic or long-range home practise), strategy implementation and military rank and control. Emphasize the monitoring and evaluating of external opportunities and threats in light of a corporations strengths and weaknesses.2 4 phases of strategic oversight sort 1- staple fiber financial oversight- managers initiate serious schemening when they ar requested to propose the following eld budget. Projects argon proposed on the creation of very little analysis, with around education coming from deep down the theatre. The gross revenue obligate usu all(prenominal) toldy provides the small amount of environmental training.Phase 2 forecast- based planning- as annual budgets become less efficacious at stimulating long-term planning, managers guarantee to propose five-year plans. At this point they depend projects that they may communicate much than wholeness year. In addition to internal information managers gather any available environmental data- usually on an ad hoc rump and extrapolate current trends five years into the future. This phase is also time consuming, very much involving a full month of managerial activity to make sure all the proposed budgets fit together.Phase 3 outwardly oriented planning- frustrated with highly governmental yet ineffectual five-year plans, top management consequences contr9ol of the planning knead by initiating strategic planning. The companionship seeks to increase its responsiveness to ever-changing markets and competition by thinking strategically. cookery is taken out of the hands of lower-level managers and saturated in a planning ply whose task is to develop strategic plans for the corporation.Phase 4 strategic management- realizing that even the surpass plans argon worthless without input and cargo of lower-level managers, top management forms planning groups of managers and tombstone employees at many levels, from various departments and work groups. They develop and integrate a serial publication of strategic plans aimed at achieving the familys immemorial objectives.3 4 prefatory elements of strategic management-1 environmental see the monitoring, evaluating and disseminating of information from the external and internal environments to headstone people within the corporation. Its purpose is to recognize strategic factors- those external and internal elements that pass on determine the future of the corporation.2 strategy formulation- is the suppuration of long-range plans for the effective management of th4e environment opportunities and threats in light of corporal strengths and weaknesses (SWOT). It includes defining the corporate commission, specifying achievable objectives, create strategies and setting policy guidelines.3 strategy impleme ntation- is a process by which strategies and policies are put into action with the development of programs, budgets and procedures. This process might involve metamorphoses within the overall culture, structure and/or the whole organization.4 evaluation and control- is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance managers at all levels use the resulting information to take corrective action and resolve problems.4 Define strategy a corporation forms a comprehensive master plan that states how the corporation will achieve its mission and objectives.5 5 forces that shape competitions as described by Porter-Threat of spic-and-span-fangled entrants industry typically bring to it new capacity a desire to take a crap market share, and substantial resources.Rivalry among actual blottos corporations are mutually dependent. A combative move by one firm can be expected to restrain a noticeable effect on on it competitors and thus may dumbfound retaliation.Threat of substitution results or service- a product that appears to be different just can satisfy the same ingest as an other(a) product talk terms power of buyers yarn-dye an industry through their ability to force down prices, slew for higher quality or more services and play competitors against each otherBargaining power of suppliers- can affect an industry through their ability to mention prices or wither the quality of purchased safe and services.6 competitive favor- a firm uses it resources, capabilities and competencies to develop a competitive advantage7 3 directional strategies-development strategies- designed to achieve growth in gross sales, assets, profits ot some combination. Most wide pursued. Continuing growth means increase sales and a chance to take advantage of the experience curve to reduce the per-unit cost of products sold, thereby increasing profits. constancy strategies- corporation may choose perceptual constancy over growth by continue its current activities without any significant change in directionRetrenchment strategies a company may pursue curtailment strategies when it a weal competitive jell in some or all its product lines resulting in poor performance- sales are down and profits are becoming losses.8 5 stages of internationalist development layer 1 ( domestic help company) the primary domestic company exports some of its products through topical anaesthetic dealers and distributors in the foreign countries. The invasion on the organizations structure is minimal because an export department at corporate headquarters handles everythingStage 2 (domestic company with export division) success in stage 1 leads the company to build up its own sales company with offices in other countries to eliminate the shopping center man and to better control marketing. Because exports hurt now become more serious the company establishes an export division to handle foreign sales office.Stage 3-(Primarily domestic company with international division) success in earlier stages its own sales company to establish manufacturing facilities in addition to sales and service offices in key countries. The company now adds an international division with responsibilities for most of the business functions conducted in other countriesStage 4 (multinational corporation with multidomestic emphasis)- now a full-fledged MNC, the company increases its investment in other countries. The company establishes a local anesthetic operating division or company in the host country such(prenominal) as Ford of Britain, to better swear out the market. The product line is expanded and local manufacturing capacity is established. Managerial functions (product development, finance, marketing and so on) are organizes locally.Stage 5 (MNC with spheric emphasis) the most successful MNC move into a fifth stage in which they receive worldwide human resourc es, R&D and financing strategies. Typically operating in a global industry, the MNC denationalizes its operations and plans product design, manufacturing and marketing around worldwide consideration.