MGMT 4000 Chapter Notes - Chapter 1: Andean Community, Learning Organization, Resource Productivity
Document Summary
Strategy is about aligning the organization around those resources, capabilities, and actions that will differentiate it in the market. Strategic management is a set of managerial decisions and actions that help determine the long-term performance of an organization. Phase 1 (cid:271)asi(cid:272) fi(cid:374)a(cid:374)(cid:272)ial pla(cid:374)(cid:374)i(cid:374)g: propose the follo(cid:449)i(cid:374)g year"s (cid:271)udget. Proje(cid:272)ts are proposed o(cid:374) the (cid:271)asis of very little analysis, with most information coming from within the firm. Phase 2 forecast-based planning: managers attempt to propose five-year plans. In addition to internal information, managers gather any available environmental data usually on an ad hoc basis and extrapolate current trends. Phase 3 externally oriented (strategic) planning: top-down planning emphasizes formal strategy formulation and leaves the implementation issues to lower-management levels. Top management typically develops long-term plans with help from consultants but minimal input from lower levels. Phase 4 strategic management: the resulting strategies may come from anywhere in the organization. Planning is typically interactive across levels and is no longer strictly top down.