CHAPTER 2: Strategic Management and Stakeholder Relationship

• Strategy is defined as a plan of action taken to achieve objectives.
• Strategic Management is a process of creating a competitive advantage over its competitors and sustaining this advantage in the long term.
• Establish Goals - this is initially performed by creating and/or clarifying your business vision/mission and identifying goals/objectives.
• Vision: What the company envisions itself to be in the future or to become.
• Mission: Describes what company is all about, who they are, what and how they do things, and for whom.
• Goals: desired outcomes of planning broader than objectives.
• Objectives: aimed targets that are needed to achieve goals.
• Scan Environment - perform a thorough analysis and assessment of the internal and external environment.
• External: looks at the external oppurtunities and threats, given the dynamics of a particular industry.
• Internal: looks at the company's strengths and weaknesses by assessing its resources.
• Formulation - develops a top-level strategies that can be trickled down to the rest of the organization.
• Implementation - executes developed plans by providing detailed objectives and action plans.
• Evaluation - measures and assesses results , and recommends changes for improvements if necessary.
• Stakeholders are individual or group of people who can be affected by the activities engaged in by corporation in achieving their goals.
• Key Stakeholder are shareholders:

  • investors
  • owners
  • partners
  • anyone who has a financial stake in the company
• One of the key arguments used in understanding CSR is the stakeholder theory.
• Stakeholder Theory states that companies are responsible for generating reasonable profits for their shareholder but should also be responsible for their stakeholders' well-being.
• Strategic CSR starts within an organization when it embeds and aligns its CSR initiatives as part of the company's overall strategy. This simply means that a company's objectives, strategies and core values take into consideration the impact its operations have on the stakeholders.