STRATEJİK YÖNETİM - Deneme Sınavı - 5

Strategy generation and selection

It is a  prescribed and evidence-based action.

Mainly an intellectual process

Financial, R&D, HR, Operational, Marketing and Technological

Competitive advantage

The status of the organization on a
centralization- decentralization base.

Complexity

Divisional structure

Shared authority, and dual lines can create obstacles.

Long term, costly, maximizes career development

Globalization creates a more competitive environment for firms; while on the other hand, it offers new business opportunities in their environment. At the same time, it is now easier to enter new markets in the global economy

Likewise, if a manufacturing firm wants to grow vertically or horizontally, it can quickly get advice from an international consulting firm to change
its production technology. These are all critical decisions that affect firms’ strategie

Strategists make strategic decisions in various ways and at different levels. The managers and their visions influence the structure of the decision-making process. Today, firms are under the pressure of the need for learning continually and being innovative.

A new investment decision of a firm is a strategic decision. Before making this investment, the firm must evaluate potential markets and analyze its resources and capabilities.

Firms should generate and select correct strategies to gain competitive advantage. Hence firms need to identify their organizational strengths and weaknesses well. They also need to identify opportunities and threats in the environment accurately. Firms should determine their resources and abilities by making systematic analyses and should give strategic responses to the environment in line with the resources and abilities they have. To achieve this analytically, they may make a SWOT analysis.

Opportunities refer to favorable external factors that could give the firm a competitive advantage. Factors such as possible new markets, growing markets, new technologies, changing customer trends may be examples of some opportunities.

Managers should remember that the analyses carried out in the SWOT matrix are periodic, and the external and internal environment has a dynamic nature and change constantly. Due to the nature of this analysis, it should be repeated at certain time intervals. It is necessary to pay attention to some points while performing a SWOT analysis.

The BCG matrix has several advantages. It shows the differences between all business units in the firm’s portfolio in a simple visual form. The BCG matrix evokes the firm that high growth will require high investments. It also reminds the manager that the stars will start to decrease after a while. Finally, it enables the manager to relate the units by showing the firm’s portfolio as a matrix.

Quantitative Strategic Planning Matrix (QSPM) method. QSPM is a key designed on the firm’s internal and external factors. The basic working principle of this management tool is based on comparing the attractiveness of the alternatives among themselves.

The business culture determines how much risk a firm wants to take in research and development, marketing activities, investment, and other activities.