1. Briefly explain strategic management in your own words. 用你自己的话简单地解释战略管理
Strategic management is the process of describe the organization's mission, vision and objectives, developing policies and plans, projects and programs in order to achieve the objectives of the firm, and then distribute resources to conduct the policies and plans, projects and programs. In other words, strategic management is the ways of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. (David, 1989). Strategic management involves adapting the organization to its business environment. Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise.
The features of the strategic managements are as following:
Strategic management is non-repetitive so each conditions is unique and requires to be assessed in its own circumstances.
Strategic management provides direction to entire organization.
Strategic management requires strategy formation and implementation.
Strategic management is partially planned and partially unplanned.
Strategic management is done at several levels: overall corporate strategy, and individual business strategies.
Strategic management involves both conceptual and analytical thought processes.
In conclusion, strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment (Lamb, 1984).
2. How do you explain the success of firms that do not use a formal strategic planning process? 你如何解释不使用正式战略规划过程的公司的成功？
Success in today's business environment requires that a company's leaders have the ability to create a vision of the organization's future direction as well as the course it needs to get there. Strategic management is concerned with the future success of the business and may entail major changes in the benefits to be offered customers, in organizational capacity, and in competitive posture.
When we look at the internal and external factors in the business we are doing, we see that the factors such as market segments, competition, economy, regulations, etc. are changing regularly. Without challenging all of those working assumptions, particularly market segments, competition, opportunities, threats, industry scenario and winner's profile, the company cannot craft their revised course and direction, goals, objectives and action plans. So, strategic planning helps organization set a much clearer direction for the future. If you fail to plan, you are planning to fail. By acting on this, strategic management actually gives the organization direction, a sense of identity and unity towards what the business goal. Strategic management has an importance of towards business success.
In conclusion, strategic management takes into consideration the company's vision and mission. Strategic management helps in achieving the organizational goals in an effective and efficient manner and monitoring the implementation of strategy using a system interlinked with the long term vision of the corporations. Improved strategic management processes may also facilitate the development of the more complex management structural that are needed as firms grow.
3. Few people reach the top-management level. Why, then, is it important for all business majors to study the field of strategic management? 很少有人达到最高管理层。那么，为什么所有商业专业的学生都要学习战略管理领域呢？
Management is known as the highest level of business planning. Strategic Management's focus is to build a strong business foundation which will subsequently reflect on collaborated efforts involving each and every single individual of an organization so strategic management process is the concern of every single person in the organization because of this issue, it is important for all business majors to study the field of strategic management.
In more detailed terms, strategic management determines what the objectives of a business are. How to develop the ways of achieving the determined objectives and what are the resources needed in order to achieve the objectives. It also covers the core objectives of an organization; it involves developing a mission statement wherein it covers the landscape assessment of the organization, such as how the operations would run and who will be the people assigned to play the key roles within the organization's landscape. Another area is the vision statement, wherein through Strategic Management, the organization will establish key objectives to respond to the gray areas and unmet needs of their business, deciding for which will entail consideration of both short-term and long-term offerings of the organization. Every person included major should study the strategic management in order to know and implement their responsibilities towards the company's missions.
The next step of strategic management is to develop a strategic plan which will efficiently and effectively run in order to meet their goals and objectives. In formulating a strategic plan, Strategic Management comes in to delegate individuals who are equipped with the adequate knowledge, experience and skills with the needs and objectives of the business. After delegation, distribution of responsibilities for tasks and processes will follow which calls for the combined efforts of all employees, in this phase they would need to effectively communicate their responsibilities and determine their deliverables.
As a final point, strategic management calls for the allocation of the precise quantity of resources to the diverse aspects of the business in order for those assigned to the specific goals will be able to attain their objectives. This varies from providing the employees with the exact resources to ratifying systems wherein employees will receive the essential and needed training, all processes of work are tested, and at the same time all generated data and information is well documented. In order to effectively and strategically manage the business, every facet of the organization should meet their needs so that in the long run, all aspects of the work involved will run seamlessly and will function as an integrated whole.
4. In what ways do you believe the strategic planning approach of not-for-profit organizations would differ from that of profit-oriented organizations? 你认为非营利组织的战略规划方法与营利组织有什么不同？
Simply put, strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization. The focus of the planning activities is often different between for-profits and nonprofits.
The typical profit seeking firm relies almost solely on the sale of its good and services to the public for its sales and revenue. For-profits tend to focus more on activities to maximize profit. On the other hand, nonprofits tend to focus more on matters of board development, fundraising and volunteer management. Not-for-profit organizations also serve the public as profit seeking companies but those firms mostly depend on membership fees, endowments, donations, contributions in addition to revenue. Their priority is not maximizing their profit because they have other incomes. So the target usage of strategic planning is different for profit seeking and not for profit organizations.
However, not for profit organizations may use strategic planning for their fund raising operations. A strategic plan doesn't guarantee they'll reach or exceed their fund-raising goals. But at the very least, it provides them with a clear, well-lighted path to reach them. Fund raising in the absence of a good strategic plan is like going on a hike in the middle of the night without a flashlight or map.
In conclusion, because of the structure and target difference between profit seeking and not for profit organizations, their priorities about revenue are different. So they use strategic planning for different purposes.
Case Study Exercises: 个案研究习题
1. What do Michael Moore's documentary, wealthy Saudi investors such as the bin Laden family, George H.W. Bush, and former Prime Minister John Major have to do with the transformation of the Carlyl Group