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
strateg...
This EXAM PACKAGE highlights key focus areas for MNG3701 for you as a student in
preparation for the examination. It’s compiled from Study Guide, prescribed textbook,
tutorial letter and previous papers. It is therefore NOT A SCOPE but guidelines that will
prepare you for your examination. Please study it carefully, and treat it as a guideline of
how to approach the questions in the exam
OTHER INFORMATION
This exam pack consist of GENERAL questions that you may come across in your exam
as well as the proposed solutions to previous exam questions papers were provided. This
exam pack consist of 94 pages
, LEARNING UNIT 1
INTRODUCTION TO STRATEGIC MANAGEMENT
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
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 vinimusic254. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R93,50. You're not tied to anything after your purchase.
