MGT 125 Chapter Notes - Chapter 1: Swot Analysis, Howa, Strategic Management
Document Summary
De ne strategic management and explain why it is important. Strategic management: what managers do to develop the organisation"s strategies. Strategies: the plans for how the organisation will do what it is in business to do, how it will compete successfully, and how it will attract and satisfy customers in order to achieve its goals. Business model: how a company is going to make money; a strategic design for howa company intends to pro t from its broad array of strategies, processes and activities. A company"s business model focuses on two things: Whether customers will value what the company is providing; Whether the company can make any money doing that. Strategic management is important for three reasons: It can make a difference in how well an organisation performs. Studies of the factors that contribute to the organisational performance have shown a positive relationship between strategic performance and planning (an organisation can use strategic management to achieve higher levels of performance)
