Strategic Unit One
Strategic Unit One
CHAPTER ONE
INTRODUCTION ABOUT STRATEGIC
MANAGEMENT
What Is Strategic Management?
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consequences and enduring effects on an organization. Top managers have the best
perspective to understand fully the ramifications of strategy-formulation decisions;
they have the authority to commit the resources necessary for implementation.
Strategy implementation requires a firm to establish annual objectives, devise
policies, motivate employees, and allocate resources so that formulated strategies
can be executed. Strategy implementation includes developing a strategy-
supportive culture, creating an effective organizational structure, redirecting
marketing efforts, preparing budgets, developing and utilizing information
systems, and linking employee compensation to organizational performance.
strategy evaluation is the primary means for obtaining this information. All
strategies are subject to future modification because external and internal factors
are constantly changing. Three fundamental strategy-evaluation activities are (1)
reviewing external and internal factors that are the bases for current strategies, (2)
measuring performance, and (3) taking corrective actions. Strategy evaluation is
needed because success today is no guarantee of success tomorrow! Success
always creates new and different problems; complacent organizations experience
demise. Strategy formulation, implementation, and evaluation activities occur at
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Before we further discuss strategic management, we should define nine key terms:
competitive advantage, strategists, vision and mission statements, external
opportunities and threats, internal strengths and weaknesses, long-term objectives,
strategies, annual objectives, and policies.
Competitive Advantage
Normally, a firm can sustain a competitive advantage for only a certain period due
to rival firms imitating and undermining that advantage. Thus it is not adequate to
simply obtain competitive advantage. A firm must strive to achieve sustained
competitive advantage by CHAPTER 1 • THE NATURE OF STRATEGIC
MANAGEMENT 9 (1) continually adapting to changes in external trends and
events and internal capabilities, competencies, and resources; and by (2)
effectively formulating, implementing, and evaluating strategies that capitalize
upon those factors.
Strategists
Strategists are the individuals who are most responsible for the success or failure
of an organization. Strategists have various job titles, such as chief executive
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officer, president, owner, chair of the board, executive director, chancellor, dean,
or entrepreneur. Strategists help an organization gather, analyze, and organize
information. They track industry and competitive trends, develop forecasting
models and scenario analyses, evaluate corporate and divisional performance, spot
emerging market opportunities, identify business threats, and develop creative
action plans.
Many organizations today develop a vision statement that answers the question
“What do we want to become?” Developing a vision statement is often considered
the first step in strategic planning, preceding even development of a mission
statement. Many vision statements are a single sentence. For example, the vision
statement of Stokes Eye Clinic in Florence, South Carolina, is “Our vision is to
take care of your vision.” Mission statements are “enduring statements of purpose
that distinguish one business from other similar firms. A mission statement
identifies the scope of a firm’s operations in product and market terms.”12 It
addresses the basic question that faces all strategists: “What is our business?” A
clear mission statement describes the values and priorities of an organization.
Developing a mission statement compels strategists to think about the nature and
scope of present operations and to assess the potential attractiveness of future
markets and activities. A mission statement broadly charts the future direction of
an organization. A mission statement is a constant reminder to its employees of
why the organization exists.
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see value in all that they consume. • Global markets offer the highest growth in
revenues.
Other opportunities and threats may include the passage of a law, the introduction
of a new product by a competitor, a national catastrophe, or the declining value of
the dollar. A competitor’s strength could be a threat.
Long-Term Objectives
Annual Objectives
Annual objectives are short-term milestones that organizations must achieve to
reach longterm objectives. Like long-term objectives, annual objectives should be
measurable, quantitative, challenging, realistic, consistent, and prioritized. They
should be established at the corporate, divisional, and functional levels in a large
organization. Annual objectives should be stated in terms of management,
marketing, finance/accounting, production/operations, research and development,
and management information systems (MIS) accomplishments. A set of annual
objectives is needed for each long-term objective. Annual objectives are especially
important in strategy implementation, whereas long-term objectives are
particularly important in strategy formulation. Annual objectives represent the
basis for allocating resources.
Policies
Policies are the means by which annual objectives will be achieved. Policies
include guidelines, rules, and procedures established to support efforts to achieve
stated objectives. Policies are guides to decision making and address repetitive or
recurring situations. Policies are most often stated in terms of management,
marketing, finance/accounting, production/operations, research and development,
and computer information systems activities. Policies can be established at the
corporate level and apply to an entire organization at the divisional level and apply
to a single division, or at the functional level and apply to particular operational
activities or departments. Policies, like annual objectives, are especially important
in strategy implementation because they outline an organization’s expectations of
its employees and managers. Policies allow consistency and coordination within
and between organizational departments.
The strategic-management process can best be studied and applied using a model
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3 This model does not guarantee success, but it does represent a clear and practical
approach for formulating, implementing, and evaluating strategies. Relationships
among major components of the strategic-management process are shown in the
model, which appears in all subsequentchapters with appropriate areas shaped to
show the particular focus of each chapter. These are three important questions to
answer in developing a strategic plan: Where are we now? Where do we want to
go? How are we going to get there? Identifying an organization’s existing vision,
mission, objectives, and strategies is the logical starting point for strategic
management because a firm’s present situation and condition may preclude certain
strategies and may even dictate a particular course of action. Every organization
has a vision, mission, objectives, and strategy, even if these elements are not
consciously designed, written, or communicated. The answer to where an
organization is going can be determined largely by where the organization has
been! The strategic-management process is dynamic and continuous. A change in
any one of the major components in the model can necessitate a change in any or
all of the other components. For instance, a shift in the economy could represent a
major opportunity and require a change in long-term objectives and strategies; a
failure to accomplish annual objectives could require a change in policy; or a major
competitor’s change in strategycould require a change in the firm’s mission.
Therefore, strategy formulation, implementation, and evaluation activities should
be performed on a continual basis, not just at the end of the year or semiannually.
The strategic-management process never really ends. The strategic-management
process is not as cleanly divided and neatly performed in practice as the strategic-
management model suggests. Strategists do not go through the process in lockstep
fashion. Generally, there is give-and-take among hierarchical levels of an
organization. Many organizations semiannually conduct formal meetings to discuss
and update the firm’s vision/mission, opportunities/threats, strengths/weaknesses,
strategies, objectives, policies, and performance. These meetings are commonly
held off-premises and are called retreats. The rationale for periodically conducting
strategic-management meetings away from the work site is to encourage more
creativity and candor from participants. Good communication and feedback are
needed throughout the strategic-management process. Application of the strategic-
management process is typically more formal in larger and well-established
organizations. Formality refers to the extent that participants, responsibilities,
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authority, duties, and approach are specified. Smaller businesses tend to be less
formal. Firms that compete in complex, rapidly changing environments, such as
technology companies, tend to be more formal in strategic planning. Firms that
have many divisions, products, markets, and technologies also tend to be more
formal in applying strategic-management concepts. Greater formality in applying
the strategic-management process is usually positively associated with the cost,
comprehensiveness, accuracy, and success of planning across all types and sizes of
organizations
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Financial Benefits
Research indicates that organizations using strategic-management concepts are
more profitable and successful than those that do not.17 Businesses using strategic-
management concepts show significant improvement in sales, profitability, and
productivity compared to firms without systematic planning activities. High-
performing firms tend to do systematic planning to prepare for future fluctuations
in their external and internal environments. Firms with planning systems more
closely resembling strategic-management theory generally exhibit superior long-
term financial performance relative to their industry. High-performing firms seem
to make more informed decisions with good anticipation of both short- and long-
term consequences. In contrast, firms that perform poorly often engage in activities
that are shortsighted and do not reflect good forecasting of future conditions.
Strategists of low-performing organizations are often preoccupied with solving
internal problems and meeting paperwork deadlines. They typically underestimate
their competitors’ strengths and overestimate their own firm’s strengths. They
often attribute weak performance to uncontrollable factors such as a poor
economy, technological change, or foreign competition.
Nonfinancial Benefits
Besides helping firms avoid financial demise, strategic management offers other
tangible benefits, such as an enhanced awareness of external threats, an improved
understanding of competitors’ strategies, increased employee productivity, reduced
resistance to change, and a clearer understanding of performance–reward
relationships. Strategic management enhances the problem-prevention capabilities
of organizations because it promotes interaction among managers at all divisional
and functional levels. Firms that have nurtured their managers and employees,
shared organizational objectives with them, empowered them to help improve the
product or service, and recognized their contributions can turn to them for help in a
pinch because of this interaction. In addition to empowering managers and
employees, strategic management often brings order and discipline to an otherwise
floundering firm. It can be the beginning of an efficient and effective managerial
system. Strategic management may renew confidence in the current business
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Some firms do not engage in strategic planning, and some firms do strategic
planning but receive no support from managers and employees. Some reasons for
poor or no strategic planning are as follows:
• Laziness—People may not want to put forth the effort needed to formulate a
plan.
• Fear of failure—By not taking action, there is little risk of failure unless a
problem is urgent and pressing. Whenever something worthwhile is attempted,
there is some risk of failure.
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• Prior bad experience—People may have had a previous bad experience with
planning, that is, cases in which plans have been long, cumbersome, impractical, or
inflexible. Planning, like anything else, can be done badly.
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"Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it h
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"Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it h
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"Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it h
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"Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it h
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"Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it h
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2010
የተገ የተገልጋዮችና የባለድርሻ 96. 85.7
ልጋዮ አካላት እርካታ በመቶኛ 56
ችና 42 ተገልጋዮች አገልግሎት
98
የባለ ያገኙ ከነዚህ ዉስጥ 6
ድርሻ ተገልጋዮች እርካታ በ አማካይ
አካላ ዉጤት የሰጡ
ት የተገልጋዮችና የባለድርሻ 89. 90 88.5
እርካ አካላት አመኔታ በመቶኛ 65
ታና
አመኔ
ታ
ማሳደ
ግ
ያደገ መደበኛ 145 200 72
የተማሪዎች ተማሪዎች
ቁጥር በቁጥር
የተማ ተከታታይ 170 200 85
ሪ ትምህርት
ቅበላ በቁጥር
መጠን የፕሮግራሞ በመጀመሪያ 2 2 100
ን ች ብዛት ድግሪ
ማሳደ
ግ
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"Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it h
2.ለዉጥ ስራዎች
በተቀመጠው አደረጃጀት መሰረት ተቋማዊ ለውጡ ተፈላጊውን ውጤት ማምጣት እንዲችል ተፈላጊው የሰው
ኃይል ለትምህርት ክፍሉ ተሟልቷል (5 መምህራን በበቂ ሁኔታ እያስተማሩ ይገኛሉ)
ትምህርት ክፍሉ የአመለካከትና የክህሎት ክፍተቶችን በተከታታይነት በመለየት የማብቃት ስራዎችን
በግምገማ ና በስብሰባ ዉይይት በማድረግ የማብቃት ስራዎች ተሰርተዋል፡፡
እነደ አስፈላጊነቱ ትምህርት ክፍሉ ከ መምህራን ጋር መወያየቱ እንዲሁም ከ ተማሪዎች ጋር በገጠሙ
ችግሮች ላይ ዉይይት በማድረግ የመማር ማስተማሩን በአሳለጠ መልኩ ማስቀጠሉ
ተማሪዎች 1 ለ 5 በተሸለ ኁኔታ በማደራጀት፡ እየተወያዩ በጋራ የሚያጠኑ ና ግሩፕ አሳይመንት
የሚሰሩ መሆኑ
የዜጐች ቻርተር የአገልግሎት ስታንዳርድ በማዘጋጀት ፡ ለተገልጋዮች በዚሁ ስታንዳርድ አገልግሎ
መሰጠቱ
የአገልግሎት አሰጣጥ ስታንደርድ በጉልህ ቦታ መለጠፍ
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ለከፍተኛ ትምህርት ተቋማት የወጡና የሚሻሻሉ ደንቦችን በአግባቡ መጠቀማችን፡፡ ለአብነት የኩረጃ
ስረአትን ለማስቀረት የኩረጃ ደንቦችን በጋራ በመገንዘብ አንድ ደረጃ ከክፍሉ መምህራን ጋር መደረሱ
እና ለተማሪዎች የእርምት እርምጃ መወሰዱ፡፡
ልዩ ፍላጎት ላላቸው ተማሪዎች ምቹና ተገቢ አገልግሎት መስጠቱ፣ለአብነት የኮፒ እገዛ ለተማሪዎች
መደረጉ፡፡
እስከ አሁን ድረስ በፋይናል ኤክዛም ምንም አይነት ችግር አለመኖሩ
የክፍሉ ተማሪዎችን ሥነ-ምግባር በሚጠበቀው ደረጃ በየ ወሩ በሚደረገዉ ከተማሪ ጋር ዉይይት
እንዲሻሻል ማደረጉ፣
እስከአሁን በተማሪ እና በመምህር መካከል ምንም አይነት ቅሬታ አለመኖሩ
ግብዓት፡ በትምህርት ክፍላችን ፡ የ LCD: ፕሪንተር፡የፎቶከፒ ቀለም :ፋይል ካብኔት፡ ሼልፍ ወዘተ ባለመኖራቸዉ
ቢሮችን በውል አልተደራጀም፡፡
የመስመር ስልክ አልገባም
የተላላኪ ችግር፡ በአካዳሚክ ዘርፍ የተመደበዉ የተላላኪ ብዛት 1 ሲሆን የሰዉ ሃይል እጥረት በ አካዳሚክ ዘርፍ
መከሰቱ ፈጣን አገልግሎ ማግኘት አልተቻለም፡፡የፎቶ ኮፒ ማባዢያ ክፍል ከ ቢሮችን የራቀ በመሆኑ ከ አድሚን 2
ተላላኪ ሊመደብልን ይገባል፡፡
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