1. Briefly discuss the three key activities in strategic management. Why is it important for managers to recognize the interdependent nature of these activities?
2. Explain the concept of "stakeholder management". Why shouldn't managers be solely interested in stockholder management, that is, maximizing the returns for owners of the firm", its shareholders?
3. Explain how the general (external) environment and the industry (external) environment are distinct, but highly related. How can these two types of external environment influence the profitability of the firm?
The three key strategic management activities of a company follow the mission, vision, and values that are the basis behind the functional tactics in the organizations strategies. Creating the essential components, through the identification of the value behind each area of business, managers can recognize the importance and understand the nature and value of strategic management, which will create an organization that is successful and ahead of the competition. "Strategy execution is concerned with: firstly, creating a portfolio of change programs that will deliver the strategy; and secondly, it involves attracting, allocating, and managing all the necessary resources to deliver these change programs. It is becoming more critical to organizations' long-term success to excel at strategy execution: those that do will outperform their peers by a wide margin" (Franken, et. al., p. 49). Managers will be successful in their jobs when they optimize the changes needed towards the intended strategy and do so managing all the necessary resources to deliver the profits that shareholders are asking for.
The mission of the company is based on the product or service the business is producing, its primary market, principal technology that will support the company; it's goals of survival, growth and profitability. Determining what is the company's philosophy will provide leverage towards the company's mission. Is there a clearly written plan and methods of implementation that will help the company to keep it's ...
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