Read the text: Strategic management

Strategic management sets the stage for virtually all managerial activity. Managers at all levels need to think strategically and be familiar with the strategic management process for three reasons: farsightedness is encour­aged, the rationale behind top-level decisions becomes more apparent, and strategy formulation and implementation are more decentralized today. Strategic management is defined as the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment. Strategic management effectively merges strategic planning, implementation, and control.

Strategic thinking, the ability to look ahead and spot key organization/ environment interdependencies, is necessary for successful strategic man­agement and planning. Three tools that can help managers think strate­gically are synergy (the 2 +2 =5 effect), product life cycles that trace the life of a product through its introduction, growth, maturity, and decline stages and Porter's three generic strategies. Porter's three strategies are overall cost leadership (keeping costs, and therefore prices, lower than those of competitors), differentiation (a company product or service must be perceived to be unique by most of the customers in its industry), and focus (attempting to gain a competitive edge in a narrower market through some workable combination of cost cutting and differentiation because a narrower market can be served more effectively efficiently than competing across the board).

The strategic management process consists of four major steps: (1) formulation of grand strategy, (2) formulation of strategic plans, (3) implementation of strategic plans, and (4) strategic control. Ongoing evaluation after each of these steps and corrective action based on feedback help keep the strategic management process on track. Strategists formulate the organization’s grand strategy by conducting a situational analysis and identifying the driving forces. Results-oriented strategic plans that specify what, when, and how are then formulated and translated downward into more specific and shorter-term intermediate and operational plans. Problems encountered along the way should be detected by the strategic control or by ongoing evaluation and subjected to corrective action.

Event outcome, event timing, and time series forecasts help strategic planners anticipate and prepare for future environmental circumstances. Event outcome forecasts are used when strategists want to predict the outcome of a highly probable future event. Event timing forecasts predict when, if ever, a given event will occur. Time series forecasts seek to determine future values in a sequence of values recorded at fixed intervals. Popular forecasting techniques among today’s managers are informed judgment, surveys, and trend analysis.

Personalities greatly affect the strategic management process because personal emotions and interests can display cool objectivity. Field research has shown that corporate strategists often blend rational and behavioral-political considerations in a disjointed manner called logical incrementalism (a process that top management strategists use to sell the long-range goals that they evolve in a logical but somewhat disjointed fashion). Managers are cautioned to be aware of the impact that dominant personalities can have on the nature of strategies.

I. Reading Exercises:

Exercise 1. Read and memorize using a dictionary:

Exercise 2. Answer the questions:

1) Why should managers at all levels need to think strategically and be familiar with the strategic management process?

2) What is strategic thinking?

3) What tools can help managers?

4) What is ongoing evaluation based on?

Exercise 3. Match the left part with the right:

Exercise 4. Open brackets choosing the right words:

Problems (predicted/encountered) along the way should be detected by the strategic control or by ongoing evaluation and (subjected/implemented) to corrective action.

THE SPEAKING MODULE

II. Speaking Exercises:

Exercise 1. Describe strategic management, strategic thinking, result-oriented strategic plans, time series forecasts, event timing forecasts

using the suggested words and expressions as in example:

Exercise 2. Ask questions to the given answers:

1) Question: ___________________________________________ ?

Answer: Strategic management effectively merges strategic planning, implementation, and control.

2) Question: ___________________________________________ ?

Answer: Popular forecasting techniques among today’s managers are informed judgment, surveys, and trend analysis.

3) Question: ___________________________________________ ?

Answer: Event outcome, event timing, and time series forecasts help strategic planners anticipate and prepare for future environmental circumstances.

THE WRITING MODULE

III. Writing exercises:

Exercise 1. Complete the sentence with the suggested words:

trace, that, through, decline, strate­gically

Three tools ____ can help managers think ______ are synergy, product life cycles that _____ the life of a product _____ its introduction, growth, maturity, and ______ stages and Porter's three generic strategies.

Exercise 2. Compose a story on one of the topics (up to 100 words):

“ Strategic thinking”

“Major steps of strategic management”

“Forecasts in management”

Date: 2015-01-12; view: 1311