Today I will continue my post in this blog about strategic management. What will we discuss in chapter three are about :

EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT

3.1 From Thinking Strategically about the Company’s Situation to Choosing a Strategy

After we understand on that flowchart, we should know what is it CORE CONCEPT. Its is  the macro-environment encompasses the broad environmental context in which a company’s industry is situated that includes strategically relevant components over which the firm has no direct control.


In Core Concept, it's include PESTEL that is an analysis that  focuses on the six principal components of strategic significance in the macro-environment:

●Political

●Economic,

●Social

●Technological,

●Environmental

●Legal

3.2 : The Components of a Company’s Macro-Environment

This will explain to you briefly

3.3 The Five-Forces Model of Competition: A Key Analytical Tool

3.4 Factors Affecting the Strength of Rivalry

3.5 Factors Affecting the Threat of Entry

3.6 Factors Affecting Competition from Substitute Products

3.7 Factors Affecting the Bargaining Power of Suppliers

What do we want to become?
           1. A vision statement should answer the basic question, "What do we want to become?"
           2. The vision statement should be short, preferably one sentence.

What is Our business?
         
           Making Mission Statement
           1. A declaration of an organization's
           2. Answers the pivotal question
           3. Reveals what an organization wants to be and whom it wants to serve.

How is the process of developing Vision and Mission?

          1. Select several articles about these statements and ask all managers to read these as background                       information.

           2. Ask managers themselves to prepare a vision and mission statement for the organization.

           3. Merge these statements into a single document and distribute the draft statements to all managers

           4.Process should create an “emotional bond” and “sense of mission” between the organization and its employees.

What is the importance of Vision and Mission Statement

          1.To ensure unanimity of purpose within the organization

             2.To provide a basis, or standard, for allocating organizational resources

             3.To establish a general tone or organizational climate

Strategic Management Chapter One

Strategic management Chapter One

What is Strategic management?

              strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.A strategic plan is a company’s game plan.

What is the stages in Strategic management?

         1. Strategy Formulation

         2. Strategy implementation

         3. Strategy Evaluation

What is the Key Terms in Strategic Management?

         1. Competitive advantage that is anything that a firm does

         2. Strategists is the individuals who are most responsible for the success or failure of an organization.

         3. Vision Statement

         4. Mission Statement

         5. External opportunities and external threats

         6. Internal strength and internal weakness

         7. Objectives that specific results that an organization seeks to achieve.

         8. Strategies

         9. Annual objectives

        10. Policies that means by which annual objectives will be achieved

What is the Strategic-Management Model?

        1. Where are we now?

        2. Where do we want to go?

        3. How are we going to get there?

What benefits that we earn in Strategic Management to a firm?

        1. Managers and employees become committed to supporting the organization.

        2. Enhance communication

        3. Improved understanding

        4. Greater Commitment

        

What benefits that we earn in Financial from strategic management?

        1. Show significant improvement in sales, profitability and productivity.

        2. High performing firms seem to make more informed decisions with good anticipation