MNG3701-Strategic Management EXAM PACK 2022. Define the concept of strategy and briefly explain its relationship to strategic
management.
Solution
Strategy:
It’s generally seen as the result or outcome of fundamentally important pre-emptive,
innovative management decisions about an orga...
Define the concept of strategy and briefly explain its relationship to strategic
management.
Solution
Strategy:
It’s generally seen as the result or outcome of fundamentally important pre-emptive,
innovative management decisions about an organisation‘s strategic direction and
strategic action plans to attain a sustainable competitive advantage and achieve its
long-term objectives in rapidly changing and competitive external business
is the direction provided by the actions and decisions of strategists in pursuit of
organisational goals.
a deliberate choice of activities
coherent narrative about the future direction of the organisation
provides members of the organisation with a framework to guide their decision
making
the verbalisation of the organisation‘s aspirations and can inspire, unite and motivate
members of the organisation
Explain what is meant by strategic management and discuss the dynamic
nature of the traditional strategic management process. Define strategy,
strategic planning and strategic management. Illustrate and explain the
strategic management process.
Solution
Strategic management: is a rational approach that organisations use to achieve strategic
competitiveness and competitive advantage. Traditional it draws on the perspective that the
management tasks consists of planning, organising, leading and controlling. Building on this
,view, the strategic tasks of top management consist of formulation strategy (planning),
implementing strategy (organising and leading) and control
Strategic management can be looked at from a traditional perspective and in a new
perspective (strategy-as-practice)
The traditional perspective is structured and a process as explained below:
1. Strategy Planning/Formulation -The planning and thinking phase, where top
management:
Decides on the organisation‘s strategic direction and its long-term objectives (usually
found in the vision and mission statement)
Analyses the organisation‘s external (to identify opportunities and threats )and
internal environments(to identify best resources and capabilities and the
organisation‘s strength and weaknesses)
Selects appropriate competitive strategies strategic choice such as focus,
differentiation or best cost
2. Strategy Implementation/Execution- it’s the doing part where both human and non-
human factors in the organisation are applied to ensure that the strategy is executed
in line with the devised plans. These are the key elements to be considered:
Leadership and culture- a strategic leader must ensure that the culture of the
organisation is aligned with strategic choice
Implementation competencies- The organisation must ensure that individuals have
the right mix of knowledge, skills and attitudes to support the strategy
Learning organisation-The organisation must be a learning organisation through its
staff and be willing to share knowledge
Systems, policies and procedures- There must be systems such as reward systems
in place to support strategic direction
Organisational architecture and structure- the organisation needs appropriate
structure to successfully execute the strategy
, 3. Strategic Control
Control measures ensuring that strategies are on track
It reviews and provides feedback to the formulation and implementation phases
Explain the rationale for new perspectives on strategy/Explain the strategy-as-
practice approach and how it differs from the process approach to strategic
management/Explain strategy-as-practice as an effective approach to
managing new strategic realities.
Solution
The new perspective (strategy-as-practice)
Drivers of strategy-as-practice approach have been as follows:
The rise in so-called emergent strategies’’, as opposed to the more traditional,
deliberate strategies of organisations, also stemming from rapidly changing business
environments,
The increasing involvement in strategising of people from all levels in the
organisation.
Strategies are complex and really address an uncertain future in the sense that
environments are dynamic and changing. Human behaviour also has to be considered. Apart
from new insights and changing environmental conditions, what was actually taught in
strategy did not reflect the realities of business, and this mainly gave rise to the following
realisations about strategy:
Strategy is what people do, not what organisations have-managers, the talk and
documents produced and in their actions
Strategy is not solely the domain of top and executive management—any individual
or group in the organisation that controls key actions can be regarded as a strategist
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXCELLENTNURSE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R58,11. You're not tied to anything after your purchase.
