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Strategic Management Chapter 2 Summary

The document discusses the five stages of the strategic management process: 1) developing a strategic vision, 2) setting objectives, 3) crafting a strategy, 4) implementing and executing the strategy, and 5) evaluating performance and initiating corrective adjustments. It notes that factors shaping decisions in the process include external and internal considerations. Senior executives play an important role in leading the process through actions like ensuring a good strategic plan and staying on top of developments.

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sutan fanandi
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1K views2 pages

Strategic Management Chapter 2 Summary

The document discusses the five stages of the strategic management process: 1) developing a strategic vision, 2) setting objectives, 3) crafting a strategy, 4) implementing and executing the strategy, and 5) evaluating performance and initiating corrective adjustments. It notes that factors shaping decisions in the process include external and internal considerations. Senior executives play an important role in leading the process through actions like ensuring a good strategic plan and staying on top of developments.

Uploaded by

sutan fanandi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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RizalHelgaSutanFanandi 10/297127/EK/17895

ManajemenStratejik

LeadershipandtheStrategicManagementProcess
FactorsshapingdecisioninthestrategicmanagementProcesshastwotype,thereisExternal and InternalConsederations. Themanagerialprocessofcrafting andexecutingacompanysstrategy consistsoffiveintergratedstages: 1.Developingastrategicvision Understanding of where we are going thecourseanddirectionmanagementhascharted and the companys future productcustomermarkettechnology focus. In sum, a wellconceived, effectively communicated strategic vision pays off in several respects: (1) it crystallizes senior executives own views about the firms long term direction (2) it reduces the risk of rudderless decision making by management at all levels (3) it isatoolforwinningthesupportofemployeesto help make the vision reality (4) it provides a beacon for lowerlevel managers in forming departementalmissionsand(5)ithelpsanorganizationprepareforthefuture. 2.Settingobjectives The managerial purpose of setting objectives is to convert the strategic vision into spesificperformance targets. Two very distinct types of performance yardsticks are required: those relating to financial performance and strategic performance. Financial objectives communicate managements targets for financial performance. Strategic objectives are related to a companys marketing standing and competitive vitality. A companys set of financial and strategic objectives shouldincludebothneartermandlongtermperformancetargets. 3.Craftingastrategy Corporate strategy ensures consistency in strategic approach among business of a diversified, multibusiness corpration. Business strategy is primaliry concerned with strengtheningthe companys market position and building competitive advantage in asinglebusinesscompanyorunit of a diversified multibusiness corporation. A companys business strategy istheresponsibilityofthe CEO and other senior executives and is primarily concerned with strengthening the companys market position and building competitive advantage. Functionalarea strategies concern the actions related to particular functions or processes within a business. Operating strategies concern the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geographic units) and specific operating activities such as materials purchasing orinternetsales. 4.Implementingandexecutingthechosenstrategy Managing the implementation and execution of strategy is easily the most demanding and timeconsuming part of the strategic management process. Good strategy execution entails that managers pay careful attention to how key internal business processes are performed and see to it thatemployeeseffortsaredirectedtowardtheaccomplishmentofdesiredoperationaloutcomes. 5.Evaluatingperformanceandinitiatingcorrectiveadjustments

RizalHelgaSutanFanandi 10/297127/EK/17895

ManajemenStratejik

The fifith stage of the strategy management processmnitoring new external developments, evaluating the companys progress, and making corrective adjustmentsis the trigger point for deciding whether to continue or change the companysvision,objectives,strategy,and/orstrategy execution methods. A companys vision, objectives, strategy, and approach to strategy execution are never final managing strategy is an ongoing process, ntaneverynowandthenask.Ingeneral, leadingthestrategicmanagementprocesscallsforseveralactionsonthepartofseniorexecutives: 1.Makingsurethecompanyhasagoodstrategicplan. 2.Stayingontopofwhatishappening. 3. Putting constructive pressure on organizational units to achieve good results and operating excellence. 4. Pushing corrective actions to improve both the companys strategy and how well it is being executed. 5.Leadingthedevelopmentofstrongercompetitivecapabilities. 6.Displayingethicalintegrityandleadingsocialresponsibilityinitiatives.

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