Strategic Management Essay

Submitted By Loki2002
Words: 1005
Pages: 5

Ch.7
Management’s central issue implementing Est. annual obj, devising policies, alloc resr, altg an exstg orgz struct, restructuring and reengineering, revising rewrd & incentive plan, min resist to chng, matching mgrs, w/strat, devo a strat support cult, adaptg production/operations processes, devo an effctv HR funct & if necessary, dwnzing.
Assuring objective 210 Annual obj-decentralized activity tht directly involve all mgr in an org.
Policies Specific guidelines, they provide a basis for mgmt. control, allow coordination across org units, & reduce the amt of time mgr spend mkg decisions.
Managing & resolving conflicts 3 class; Avoidance- ignoring the prob in hopes it resolves its self. Defusion- playing down diff between & accentuating common interests, compromising, no clear winner, common interest, appealing to higher power or redesigning present position. Confrontation- exchanging members of conflicting parties so that each can appreciate the other’s point or holding meeting w/both parties.
Type of organizational structure No one optimal type/optimal. What works for one doesn’t for another although firms in same market tend to organize in the same matter.
Resistance to change Single greatest threat to successful strategy implementation. Sabotaging, absenteeism, filling ungrounded grievances & unwillingness to coop.
Current view of organizational change Should be viewed as a continuous process rather than as a proj.
Japanese culture Harmony among mangrs is emphasized over indivl excellence. CEO’s are paid $1.3 mil/yr including bonuses 7 stock vs. Euro’s $6mil & U.S.A $12 mil.
Alternate & organization culture Chng an orgs cult to fit a new strat is more effective thn chng a strat to fit cult.
Matching manager with strategy Concern: jobs have specific & relatively static responsibilities, althg peeps are dynamic in their personal devo. Method: Trans mgrs., devo leadership wrkshops, offering career devo activities, promos, job enlargmt/enrichment.
2 career families Abt 60 mil peeps in the US
Women CEO’s 2.6% of fortune 500. USA Today tracks perfm & vs. men virtually no diff.
Boeing’s CEO Harry Stonecipher, fired for having extramarital affair w/coworker.
Use of minority suppliers Toyota has committed abt $8 bil over 10 yrsto diversify its workforce and to use minority. Hundreds of other firms, Ford, coke.
Ch. 8
Marketing to strategic management Market segmentation & Product positioning rank as most imprt.
Marketing segmentation 3 Reasons its important variable in implementation. Strategies, Operate w/limited resources, Marketing mix variables: 4p’s.
To produce desired levels Matching supply & demand w/o extra shifts, OT, & subcontracting.
Vacant niche The best strategic opportunity might be an unserved segment. A hole.
Rule of thumb using product positioning Not create expectations that exceed the srv the firm can deliver.
Financial & Acct policies 1. Raise Cap w/ST, LT debt. Pref stock, commn stock. 2. Lease or buy fixed assets. 3. Determine appropriate div payout ratio. 4. Use LIFO, FIFO, or mrkt-val approach. 5. Extend time of AR. 6. Est % disc on accts w/in specific per. 7. Determine the amt of cash on hand.
Capital structure Mix of debt & equity. Determining is vital to success. EPS/EBIT analysis.
Attractive financial techniques Depressed stock prices use debt, EPS/EBIT when high.
Using equity to raise capital May impose fixed obligations, restrictive covenants, or other constraints tht could severely reduce ability to raise in the future.
Projecting financial analysis Central strategy-implementation technique bcs it allows an org to examine the expected results of various actions & approaches. Forecast the impact of various decisions.
Preparing projected statements Before Bal Sheet. Forecast sales accurately minding of how they were achieved & if relevant to future and if production, working at 100 capacity.
Paid out dividends NI-DIV=Retained Earning then…