Strategic management - managerial decisions and actions that determines the long-run performance of a corporation.
1. Basic financial planning.
2. Forecast-based planning.
3. Externally-oriented planning.
4. Strategic management.
Strategic management includes four elements:
1. environmental scanning,
2. strategy formulation,
3. strategy implementation, and
4. evaluation and control.
Benefits:
1. Clearer sense of strategic vision
2. Sharper focus
3. Improved understanding of a rapidly changing environment.
Simple questions
1. Where is the organization now?
2. If no changes are made, where will the organization be in 1 year? 2 years? 5 years? 10 years?
3. What specific actions should management undertake?
The real value of modern strategic planning is more in the strategic thinking and organizational learning.
Globalization, the internationalization fo markets and corporations. To reach economies of scale, low costs, low prices to be competitive, companies need to think of a global market.
NAFTA - North American Free Trade Agreement
Mercusur (Argentina, Brazil, Uruguay, and Paraguay)
CAFTA - Central American Free Trade Agreement
ASEAN - Association of Southeast Asian Nations
Electronic commerce - refers to the use of the Internet to conduct business transactions.
Population: China, India, US, Indonesia, Brazil.