BP& S Unit I Assessment

BUS 4302, Business Policy & Strategy 1

Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Analyze the nuances of strategic management. 1.1 Distinguish between strategic management and strategic planning. 1.2 Describe the strategic management process, including how it is used by organizations. 1.3 Identify the need for organizations to evaluate strengths, weaknesses, and adaptability. 1.4 Identify the difference between long-range planning and strategic planning.

2. Correlate the characteristics of vision and mission to business success.

2.1 Compare the concepts of mission and vision. 2.2 Explain why organizations may need to update their mission and vision statement periodically.

Course/Unit

Learning Outcomes Learning Activity

1.1

Unit Lesson Chapter 1 Part 6 (1 section) Unit I Assessment

1.2

Unit Lesson Chapter 1 Part 6 (1 section) Unit I Assessment

1.3

Unit Lesson Chapter 1 Part 6 (1 section) Unit I Assessment

1.4

Unit Lesson Chapter 1 Part 6 (1 section) Unit I Assessment

2.1

Unit Lesson Chapter 1 Part 6 (1 section) Unit I Assessment

2.2

Unit Lesson Chapter 1 Part 6 (1 section) Unit I Assessment

Required Unit Resources Chapter 1: The Nature of Strategic Management Part 6: Strategic-Management Case Analysis—Read the following section:

• How to Prepare and Present a Case Analysis

UNIT I STUDY GUIDE Overview of Strategic Management

BUS 4302, Business Policy & Strategy 2

UNIT x STUDY GUIDE Title

Unit Lesson Welcome to Unit I. During our time together, we will learn about the principles of strategic management and how these principles are applied to businesses and organizations. Unit I is an overview related to the nature of strategic management. The principles of strategic management can be seen in many areas of life. Consider the following example: Can you imagine asking Congress and the president of the United States for bailout funds without having any clear vision or strategy of how you plan to pay back these borrowed funds or what your organization plans to do with these funds? Having this information is important when applying for any type of funding. A lending institution, whether it be a bank or a government institution, will require precise and specific information before considering allocating its own funds to assist another entity. The potential consequences of not having the right information could be detrimental to both the borrower and the lender. An example would be the housing market issues and lender practices of the 2008 great recession. Some lenders were purposely not requesting specific information in an effort to increase sales of loans. Loans were being approved for individuals and corporations who did not qualify for this type of funding. Strategic management is both the art and science of formulating, implementing, and evaluating cross functional decisions that enable an organization to achieve its objectives. In simpler terms, it is a plan or roadmap that assists an organization to reach its intended goals. Strategic management also includes many planning aspects to include long-term planning. For example, if a corporation plans to someday be a nationwide leader in customizable phone cases, it must have the forethought and planning to achieve that goal. There are key sequential stages of the strategic management process. The steps are listed below.

1. Strategy formulation: This is where the vision and mission are developed. Also, a strengths, weaknesses, opportunities, and threats (SWOT) analysis can be created.

2. Strategy implementation: This is where the organization dives into its expected yearly objectives, policies, and other efforts. The textbook refers to this stage as the “action stage.”

3. Strategy valuation: During this stage, the previous two stages are evaluated and reassessed. If needed, the strategy will be modified or updated to remain relevant and operational.

In addition to developing a strategic management plan, an organization must continuously remain agile and adaptable to change. Take, for example, the healthcare industry—have you noticed a change from a physician-centric culture to a patient-centric culture? Our modern healthcare enterprise now values the patient as the customer, thus focuses resources and efforts to directly support the patient and his or her family. This is a great example of an entire culture and organization that has adapted. An additional phrase to concentrate on is competitive advantage. This is how the organization sets themselves apart from competing entities. The advantage can be in multiple forms to include customer service, quality, product recognition, endorsements, and availability (Internet). Amazon has a distinct competitive advantage as compared to its many competitors because of its business model and ability to provide goods without the customers ever having to leave the comfort of their homes. This advantage is not permanent; other competitors will find ways to mimic or set themselves apart from Amazon, thus forcing Amazon to continuously adapt to remain relevant (David et al., 2020). The vision and mission statements are the foundation of every organization. Without these statements, the organization has no clear direction or goals. A vision statement is defined as a description of what the organization would like to become in the future. An example is if we wanted to start a personalized cell phone cover organization; what are our long-term expectations? The long-term expectations could be five years or longer depending on the organization. The mission statement identities the scope of the organization’s operations. The military also incorporates mission statements and includes the five Ws, which include who, what, when, where, and why/how the organization will accomplish their scope of work. The military uses this type of mission statement because it is clear and concise and can easily be understood by everyone in the organization. The CEO of a company, along with his or her leadership team, should be involved in the development and updates related to the mission and vison statements.

BUS 4302, Business Policy & Strategy 3

UNIT x STUDY GUIDE Title

Reference David, F. R., David, F. R., & David, M. E. (2020). Strategic management: A competitive advantage approach,

concepts and cases (17th ed.). Pearson. https://online.vitalsource.com/#/books/9780135203736 Suggested Unit Resources In order to access the following resources, click the links below. The chapter presentation below will provide you with additional information on this unit’s concepts. Access the Chapter 1 Presentation. Access the PDF version of the Chapter 1 Presentation.