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Why strategic planning process might be different in different organizations? Provide examples.
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What are the existing approaches and methods to strategic management?
In general terms, there are two main approaches, which are opposite but complement each other in some ways, to strategic management:
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The Industrial Organizational Approach
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based on economic theory — deals with issues like competitive rivalry, resource allocation, economies of scale
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assumptions — rationality, self discipline behaviour, profit maximization
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The Sociological Approach
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deals primarily with human interactions
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assumptions — bounded rationality, satisfying behaviour, profit sub-optimality. An example of a company that currently operates this way is Google
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What is the role of stakeholders in the strategic planning process?
A stakeholder is any person or organization, who can be positively or negatively impacted
by, or cause an impact on the actions of the company. It is important to understand stakeholders needs/expectations and involve them into strategic planning process.
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What is the role of vision, mission, values and principles in the strategic planning process?
Where? – Our dreams and desires about the future
Vision
How? – Our understanding about the basic purpose of the company existence
Mission
Beliefs and attitudes about the ways things should be
Values
A rule or code of conduct in the unpredictable situation
Principles
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How to implement the SWOT analysis?
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How to set the objectives?
Specific
Measurable
Achievable
Relevant
Time-bound
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Why scenario planning is so popular nowadays?
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Define the factors that influence the strategy implementation.
Budget
Organization
Tasks assigned
Resources allocation
Motivation
Proper measuring of results
Consistency
Organizing in the multinational company.
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Explain the organizing process and major organizational decisions.
Organizing, in companies point of view, is the management function that usually follows after planning.
Organizing Process involves
- the assignment of tasks,
- the grouping of tasks into departments and
- the assignment of authority and allocation of resources across the organization.
Organizational decisions:
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What determines the basic framework of departmentalization and what are the strengths and weaknesses of the basic forms? Please, explain the organizational structure of the company in your course project.
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What determines the span of management and hence the levels of organization?
- Work performed by subordinates is stable and routine.
- Subordinates perform similar work tasks.
- Subordinates are concentrated in a single location.
- Subordinates are highly trained and need little direction in performing tasks.
- Rules and procedures defining task activities are available.
- Support systems and personnel are available for the managers.
- Little time is required in nonsupervisory activities such as coordination with other departments or planning.
- Managers' personal preferences and styles favour a large span.