Final Exam Review Notes Essay

1 strategical Management set of managerial decisions and serves that determines the long-run writ of execution of a corporation. It includes surroundingsal s evict (both external and internal), knocked out(p) mental strain formulation (strategic or long-range plan), strategy implementation and evaluation and discipline. Emphasize the monitoring and evaluating of external opportunities and threats in crystalise of a corporations strengths and weaknesses.2 4 phases of strategic prudencePhase 1- prefatorial financial management- managers initiate serious planning when they atomic number 18 requested to propose the following years budget. Projects ar proposed on the primer coat of very critical analysis, with most information coming from within the profligate. The sales force commonly provides the small amount of environmental information.Phase 2 forecast- based planning- as annual budgets become less useful at stimulating long planning, managers attempt to propose fi ve-year plans. At this point they consider projects that they may stockpile more than one year. In addition to internal information managers ruck up any available environmental data- usually on an ad hoc basis and extrapolate current trends five years into the upcoming. This phase is also meter consuming, often involving a full month of managerial activity to happen upon sure all the proposed budgets fit together.Phase 3 externally oriented planning- frustrated with highly political yet in importual five-year plans, top management begets contr9ol of the planning process by initiating strategic planning. The alliance seeks to increase its reactivity to changing markets and competition by thinking strategically. Planning is taken out of the hands of lower-level managers and concentrated in a planning staff whose labor movement is to develop strategic plans for the corporation.Phase 4 strategic management- realizing that even the vanquish plans are worthless without input and commitment of lower-level managers, top management forms planning groups of managers and tonality employees at many levels, from various departments and work groups. They develop and desegregate a series of strategic plans aimed at achieving the fraternitys immemorial objectives.3 4 basic elements of strategic management-1 environmental scanning the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the corporation. Its calculate is to identify strategic factors- those external and internal elements that will determine the future of the corporation.2 strategy formulation- is the maturation of long-range plans for the effective management of th4e environment opportunities and threats in light of corporate strengths and weaknesses (SWOT). It includes defining the corporate missionary work, specifying achievable objectives, growing strategies and setting policy guidelines.3 strategy implementation- is a proce ss by which strategies and policies are put into action finished the development of programs, budgets and procedures. This process mogul involve changes within the overall culture, structure and/or the entire 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 compass its mission and objectives.5 5 forces that shape competitions as described by Porter- nemesis of new entrants intentness typically bring to it new capacity a desire to gain market share, and substantial resources.Rivalry among existing firms corporations are mutually dependent. A agonistic move by one firm can be expected to have a noticeable effect on on it competitors and thus m ay cause retaliation.Threat of refilling products or service- a product that appears to be different but can satisfy the same need as another productdicker power of buyers affect an industry through their ability to force rase prices, bargain for higher quality or more services and mutant competitors against each otherBargaining power of suppliers- can affect an industry through their ability to raise prices or reduce the quality of purchased commodity and services.6 competitive advantage- a firm uses it resources, capabilities and competencies to develop a competitive advantage7 3 directional strategies-Growth strategies- designed to achieve growing in sales, assets, profits ot some combination. Most widely 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.Stability strategies- corporation may choose stability over growth by continuing its current act ivities without any significant change in directionRetrenchment strategies a come with may pursue retrenchment strategies when it a weal competitive position in some or all its product lines resulting in poor performance- sales are surmount and profits are becoming losses.8 5 dos of international developmentStage 1 (domestic company) the primary domestic company merchandises some of its products through local anaesthetic dealers and distributors in the foreign countries. The impact 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 establish its own sales company with offices in other countries to eliminate the middle man and to better control marketing. Because exports have now become more important the company establishes an export division to oversee foreign sales office.Stage 3-(Primarily domestic company with internationa l 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 fully fledged MNC, the company increases its investment in other countries. The company establishes a local operating division or company in the host solid ground such as Ford of Britain, to better serve 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 global emphasis) the most successful MNC move into a fifth stage in which they have worldwide human resources, 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.