Strategic Audit of a Corporation
Business Policy & Decision Making 1. What is the study of strategies management? Ans: the study of strategies management therefore emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weakness. Strategic management is that set of managerial decision and action that determine the long run performance of a corporation 2. Give the evolution of strategic management
ANS: it include environment scanning (Both external and internal), strategy formulation ( strategic or long –range planning ), strategy implementation, and evaluation and control. 3. Has learning become part of strategic management? Ans: strategic management has now evolved to the point that its primary value is to help the organization operate successful in a dynamic, complex environment. To be competitive in dynamic environment, corporation has to become less bureaucratic and more flexible. . Explaining the term triggering events ANS: A Triggering event is something that stimulates a change in strategy. 5. Some of the possible trigging event ANS: New CEO, by asking a series of embarrassing question, the new CEO cuts through the veil of complacency and forces people to question the very reason for the corporation existence Intervention by an external institution The firm‘s bank suddenly call for payment in full n an old one.
Threat of a change in ownership, another firm may initiate a takeover by buying the company‘s common stock. Management recognition of a performance gap, A performance gap exists when performance does not meet expectation. 6. Strategic Management consist of how many basic element Ans: four basic elements 1 environment scanning, 2 strategy formulation, 3 strategy implementation and 4 evaluation and control 7. What is environment scanning?
Ans; environment scanning is the monitoring, evaluating and disseminating of information from the external and internal environment to key people within the corporation. 8. Explain strategy formulation ANS: SSTRETEGY FORMULATION IS THE DEVELOPMENT OF A LONG –RANG PLAN FOR THE EFFECTIVE MANAGEMENT OF ENVIRONMENT OPPORTUNITIS AND THREATS, TAKING INTO CONSIDERATION CORPORATE STRENGTHS AND WEAKNESSES’ It include defining the corporation mission, specifying achievable objective, developing strategy and sitting policy guidelines. . What are strategies, name the three kinds discussed ANS: A STRATEGY of a corporation is a comprehensive master plan stating how the corporation will achieve its mission and objective, it maximize competitive disadvantage. The three kind of strategy are as following 1 corporate describes a company ‘s overall direction in terms of its general attitude toward growth and management of its various business and product lines. 2.
Business strategy usually occurs at the business unit or product level, and it emphasizes improvement of the completive position of a corporation’s product or services in the specific industry market served by that business unit. 3. Functioning strategy is the approach taken by a functional area, such as marketing or researching and development, to achieve corporate and business unit objective and strategies by maximizing resources productivity.