MNG3701-Strategic Management Latest Updated Questions And Answers 2022.
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MNG3701 - Strategic Management (MNG3701)
Institution
University Of South Africa
MNG3701-Strategic Management Latest Updated Questions And Answers 2022. 1/3. Critically differentiate between the concepts of strategy, strategic planning &
strategic management. Important question (10)
Strategy:
Long-term direction of the organisation.
A pattern, in a stream of decisions, the ...
mng3701 strategic management latest updated questions and answers 2022
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MNG3701 - Strategic Management (MNG3701)
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MNG3701
Questions And
Answers 2022.
,MNG Summaries Study unit 1 Q1-3 Important
1/3. Critically differentiate between the concepts of strategy, strategic planning &
strategic management. Important question (10)
Strategy:
Long-term direction of the organisation.
A pattern, in a stream of decisions, the way organisations achieves its objectives.
It’s a choice of deliberate activities made in order to achieve a competitive advantage for the
organisation.
Strategic planning / strategy formulation:
The 1st phase of an integrated strategic management process, based on the concepts of
strategic thinking & strategy, & comprises of 3 main decision stages:
1. Deciding on the future of the organisation – strategic direction
2. Analysing the organisation's internal & external environments
3. Selecting appropriate competitive strategies - to achieve the long term objectives.
Specifies: The strategy that needs to be implemented for achievement of long term
objectives.
Involves: Making decisions about the organisation’s long term goals & strategies
Ongoing activity & managers are encouraged to think strategically about long term
externally – orientated issues as well as short term tactical & operational issues.
Strategic management:
Traditionally, defined as setting strategic direction, setting goals, crafting a strategy,
implementing & executing strategy, & then, over time, initiating whatever correct
adjustments are deemed appropriate. Recent research showed that strategy is not an in
sequence & discrete process, it is a rather messier, overlapping & iterative process. The
overall purpose of strategy remains the attainment of a long-term position of advantage,
superior performance & strategy.
Purpose of strategic management: Ensure that the organisation applies the 4 key elements
of a successful strategy:
1. Clear & consistent long-term strategic direction of what the organisation wants to achieve
in future.
2. Great understanding of the competitive environment, to ensure that the organisation is
able to align itself with opportunities & to deal with threats as effectively as possible.
3. Objective knowledge of the key resources & capabilities that the organisation possess, as
well as an understanding of its value for the organisation, to allow the organisation to build
on these & develop a distinct advantage.
4. Proper alignment of the organisation's structure, systems, culture, functional &
operational management to ensure the effective implementation of strategic plans, projects
& initiatives.
Strategic management is ultimately about consistently aligning the organisation with its
internal & external environments & involves specifying organisation’s objective, developing
policies & plans design to achieve the objectives.
Page 1 of 33
,2/3. Describe the different levels of strategy in an organisation: Important question (10)
Corporate Level: The first & highest level of strategy. These strategies are normally done by
the CEO, board of directors or other governing bodies & focus on how to create value for its
shareholders. Strategic decisions on this level include decisions like mergers or entering an
international market. Notably that single businesses do not use this business level strategies or
competitive strategies. Determines what businesses a company should be in or wants to be in.
It determines the direction that the organization is going & the roles that each business unit in
the organization will plan in pursuing that direction.
Business Level: Is more concerned about developing and sustaining a competitive advantage
for the goods and services that are produced. It is strategy for competing against competitors
within a particular industry.
Functional Level: The last but not the least. Functional strategies are done on a functional
level for example by marketing- or operations managers. The aim of strategies on this level is to
find the best possible way for executing the business level strategies executed efficiently and
effectively
In order for this strategic process to be successful, all levels of strategies must be in line with
each other as well as with the organisations objectives. Managers must be aware of this & also
the implications of their choices.
3/3. Explain the importance, benefits & risks of strategy: Important question Lectors
answer (10)
Strategy is a clear story about the future direction of an organisation.
Benefits
It combines the views & thinking of members of the organisation & communicates the
outcome back to the organisation so that everyone follows the same strategy.
It provides members of the organisation with a framework to guide their decision-
making.
It provides an actionable blueprint for achieving its aspirations.
Importance
It provides for cohesive strategic thinking, an innovative & future-oriented decision
framework for the organisation.
Pools the contributions by organisational members, thereby facilitating the
communication of strategy to all.
It is the verbalisation of the organisation's aspirations & serves as a source of motivation
for everyone in the organisation.
Risks
Despite its acclaimed benefits, strategic management also deals with risks of a strategic
nature. Even though there are different perspectives on risk.
Strategic risk is “an array of external events & trends that can devastate a company's
growth trajectory (route) & shareholder value”.
The 7 strategic risks categorises: Industry risk, Technology risk, Brand risk, Competitor
risk, Customer risk Project risk & Stagnation risk
There is a common view that strategic risk is about managing risk strategically instead of
examining it as a category similar to operational, financial & other risk areas. This is a
common view that mainly stems from the complexity & difficulty of identifying strategic risk.
Page 2 of 33
, Learning unit 2 (Q1-3 Important)
1/3. What is meant by the traditional process perspective/ aproach on strategic
management? Provide a critical analysis of this perspective Important question (20)
Traditional view of strategic management is that it is a process with distinct stages / phases
including strategy formulating, strategy implantation & strategic control.
1st Strategy formulating is the starting point: Where top management decides what to do,
deciding the future of the organisation, setting the strategic direction & setting goals for the
organisation. They do this by means of various analysis of the organisation itself & the
environment in which it operates.
A range of management tools can be used to set strategic direction such as a vision & mission
statement, a statement of strategic intent & even a value statement.
Formulating strategic intent, vision, mission & broad statement about purpose, philosophy &
goals
Analysing external environment: Macro-, Industry & Market Environments
Analysing internal environment (Strengths & weakness of resources & capabilities)
Analysing strategic options (Matching resources & capabilities with opportunities & threats)
Identifying most desirable strategic options (by evaluating against vision, mission & strategic
intent)
Select long-term objectives & strategies to achieve them.
2nd stage is strategy implementation: The most challenging stage. Once the organisation has
selected the strategies they must be put into action, & this require the involvement of everyone
(all the staff) in the organisation. The strategies must be communicated to all parties & it is
important that there is a clear understanding & buy-in to ensure the effective implementation of
the strategy. Members must be motivated towards achieving the goals.
Successful implementation of strategic actions are ensured through certain drivers such as
leadership, management & culture, the organisation structure, inherent systems, policies
should be aligned with the overall strategic direction. Leaders & managers should empower &
enable employees to carry out tasks to implement the strategies by ensuring the appreciate
allocation of financial, human, physical & informational resources. If the resources are lacking,
the implementation will surely fall.
Develop annual objectives & short term functional strategies & tactics, compatible with long-
term choices
Implement selected strategies & tactics (budgets resource, matching & aligning tasks,
people, structures etc.)
Ensure sustainability has been integrated into strategies
3rd & final stage, strategy review & control are a continuous process: As strategies are
implemented, the strategy review takes place. Strategy review & control involves monitoring the
process of the strategy implementation, identifying problems & instituting any necessary
corrective action. Different methods of strategy review include continuous environmental
scanning, implementation control & also the use of the balanced scorecard. It is mostly senior &
middle managers who are involved in the strategy review process. Most important is the
feedback from the review that needs to sieve as an input into the amendment of existing
strategies & goals. Continuous feedback forms the foundation of the strategic management
process. Continuously evaluate success of strategic management process as input for
future decision-making
Page 3 of 33
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