MGMT 4000 Chapter Notes - Chapter 1: Strategic Management, Market Environment, Flight Controller

• School: University of Guelph
• Department: Management
• Course: MGMT 4000
• Professor: Mark Juhasz

Document Summary

The study of strategic management . Strategic management: a set of managerial decisions and actions that help determine the long-term performance of an organization. Includes internal and external environmental scanning, strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control. Phases of strategic management: world (cid:373)arkets are i(cid:374)(cid:272)reasi(cid:374)gl(cid:455) (cid:448)olatile, (cid:272)e(cid:373)e(cid:374)ti(cid:374)g strategi(cid:272) (cid:373)a(cid:374)age(cid:373)e(cid:374)t"s (cid:373)oder(cid:374) i(cid:373)porta(cid:374)(cid:272)e. Phases of strategic management: a set of four levels of development through which a firm generally evolves into strategic management. Basic financial planning: rudimentary planning which uses mostly internal information when creating budgets and has a time horizon of 1 year. Forecast-based planning: generally 5 year plans that better utilize external data but are lengthy to compile and can create competition for funds in the long-term budgets. Externally-oriented strategic planning: budgeting power taken away from lower-managers and handled by strategic planners and consultants who forecast future trends very formal & top-down.