Scan/long press the QR code below
Get a note learning plan
Scan/long press the QR code below
Do questions for free and learn live classes for free
Click to view: 2018 CPA Exam "Corporate Strategy" Test Center Review Summary
Exam Reminder: Download the Note Club 10,000 Question Bank and immediately enter the >> of the brush mode
Chapter 1 Strategy and Strategic Management
Section 1 Basic Concepts of Corporate Strategy
1. Definition of corporate strategy (★)
(1) The traditional concept of corporate strategy
Professor Porter's definition of strategy at Harvard University in the United States can be regarded as a typical representative of the traditional definition of corporate strategy. He argues that "strategy is a combination of some end points that a company strives for and the paths that a company seeks to get there." "It emphasizes the planned, holistic and long-term nature of the company's strategy.
(2) The modern concept of corporate strategy
Canadian scholar Mintzberg defines strategy as "a series or set of decisions or actions", which includes a deliberately arranged (or planned) strategy and any ad hoc (or unplanned) strategy. Many scholars have also begun to study bounded rationality.
Literally, the difference between the modern concept and the traditional concept: the modern concept believes that strategy only includes the path sought to reach the end point of the enterprise, and does not include the end point of the enterprise itself; From the perspective of essential differences, modern concepts emphasize the adaptability, competitiveness and risk of strategy.
In fact, much of the company's strategy is a combination of advance planning and contingency response. The task of strategy development involves developing a strategic plan, i.e., a premeditated strategy, which is constantly adjusted as things progress. A practical strategy is the result of constant planning and re-planning by managers as they are constantly exposed to situations inside and outside the company.
【Example 1: Multiple Choice】Among the following statements about strategy, the correct one is ( ).
A. The modern concept of strategy includes both the endpoint and the path of the enterprise
B. The traditional concept of strategy mainly emphasizes the planning, adaptability and long-term nature of strategy
C. The core of strategy is premeditation
D. Bounded rationality of the organization emphasizes the adaptability of the strategy
【Answer】D
The modern concept of strategy only includes the way, not the end point of the enterprise itself, and the traditional strategic concept includes both the end point and the way. So, option A is wrong. The traditional concept of strategy mainly emphasizes the planning, overall situation and long-term nature of the strategy, while the modern concept of strategy emphasizes the adaptability, competitiveness and risk of the strategy. So, option B is wrong. Most corporate strategies are a combination of advance planning and contingency strategies, i.e., strategies that are both proactive (pre-planned strategies) and reactive (adaptive strategies). So, option C is wrong. Bounded rationality of an organization emphasizes the adaptability of strategies to the constraints of unpredictable or unknown internal and external factors. So, option D is correct.
【Example 2 Multiple Choice Questions】Compared with the traditional concept of strategy, the modern concept of strategy emphasizes the strategic ( ).
A. Strain B. Competitiveness
C. Risk D. Planning
【Answer】ABC
The traditional concept of strategy emphasizes the planning, overall and long-term nature of the company's strategy; The modern concept of strategy places more emphasis on the adaptability, competitiveness and risk of strategy.
2. The function of the company's mission, goals and corporate strategy (★★)
(1) The company's mission
The company's mission is to clarify the fundamental nature and raison d'être of the business organization, which generally includes three aspects:
1. Company Purpose
The purpose of the company is the direct embodiment of the fundamental nature and raison d'être of the enterprise organization. Organizations can be divided into two broad categories based on their raison d'être: for-profit organizations and non-profit organizations. An organization formed for profit with the primary purpose of bringing economic value to its owners. Conversely, organizations that are set up for a non-profit purpose have the primary purpose of improving social welfare, promoting political and social change, rather than making a profit.
2. Company purpose
The purpose of the company is to explain the company's long-term strategic intention, and its specific content mainly describes the company's current and future business scope. Drucker, an American scholar, believes that proposing "what is the company's business" is equivalent to proposing "what is the purpose of the company". The company's business scope should include the company's products (or services), customer objects, markets and technologies.
The company's purpose reflects the company's positioning. Positioning refers to the steps taken by a business to adapt to the environment in which it operates. Positioning includes market positioning relative to other enterprises, such as what type of products or services are produced or sold to specific departments, or in what way to meet the needs of customers and the market, how to allocate internal resources to maintain the competitive advantage of the enterprise, and so on.
3. Business philosophy
The business philosophy is the values, basic beliefs and codes of conduct established by the company for its business activities, and it is a high-level summary of the corporate culture. The business philosophy is mainly reflected in the company's attitude towards its stakeholders, the common values, policies and objectives promoted by the company, and the management style. The business philosophy also influences the company's business scope and business results.
Although the company's mission involves a lot of content, many companies often do not express the mission in detail and comprehensively, but only show the company's main strategic direction. In large part, this is due to the fact that in a complex and volatile environment, a detailed and comprehensive mission statement can make the company more reactive in the implementation of the strategy. This is the embodiment of the modern concepts defined by the company's strategy: adaptability, competitiveness and risk.
(2) The company's goals
The company's goal is the embodiment of the company's mission.
The company's goal is a system. The purpose of establishing a target system is to translate the company's mission into clear and specific performance goals, so that the company's progress has a measurable standard.
From a company-wide perspective, there are two types of performance standards that need to be established: those related to financial performance and those related to strategic performance.
The financial objective system indicates that the company must aim to achieve the following outcomes: market share, earnings growth rate, satisfactory return on investment, dividend growth rate, stock price evaluation, good cash flow, and trust in the company, among others.
Both the financial target system and the strategic target system should be reflected from both short-term and long-term goals.
The establishment of the target system requires the participation of all managers. Each unit in the company must have a specific, measurable performance goal, where the goals of each unit must match the goals of the company as a whole.
【Example 3: Multiple Choice】The following statements can be used as corporate mission ( ). (2011)
A. Strengthen the quality management of development projects
B. 2 landmark buildings will be built in the urban area within 5 years
C. Contribute to the modernization, specialization and rationalization of urban construction
D. In the development of a landmark building, the traditional Chinese culture is used as the basis to integrate scientific and technological elements
【Answer】C
【Analysis】The mission of the enterprise is to clarify the fundamental nature and raison d'être of the enterprise organization, and the goal of the enterprise is the concretization of the mission of the enterprise. Option A falls under the strategic category (functional strategy); Option B is a corporate objective; Option C is part of the corporate mission; Option D falls under the implementation plan and/or budget (i.e. strategy).
【Example 4 Multiple Choice Questions】Among the following statements about the company's goals, the correct ones are ( ).
A. The company's goal is the embodiment of the company's mission
B. The company's target system refers to the company's financial target system
C. The company's goal system refers to the company's strategic goal system
D. The establishment of the company's target system requires the participation of all managers
【Answer】AD
【Analysis】The mission of the company is to clarify the fundamental nature and raison d'être of the enterprise organization, and the company's goal is the concretization of the company's mission, and option A is correct; The company's goal system includes both the company's financial goal system and the company's strategic goal system, and options B and C are wrong; Each unit in the company must have a specific and measurable performance goal, in which the goal of each unit must match the goal of the whole company, so the establishment of the company's goal system requires the participation of all managers, option D is correct.
(3) The function of the company's strategy
1. The company's strategy points out the direction of the company's development;
2. The company's strategy is the basis and driving force for integrating and optimizing the company's resource capabilities;
3. The company's strategy is the premise and guarantee for improving the efficiency of enterprise management.
3. The level of the company's strategy (★)
Corporate strategy is divided into three levels: overarching strategy, business unit strategy (or competitive strategy), and functional strategy.
(1) Overall strategy
The overall strategy is also known as the company-level strategy. In large and medium-sized enterprises, especially those with diversified operations, the overall strategy is the highest level of the enterprise's strategy. It is necessary to select the business areas in which the enterprise can compete according to the objectives of the enterprise, rationally allocate the resources necessary for the operation of the enterprise, and make the various business support and coordinate with each other. Corporate strategy often involves issues related to the financial and organizational structure of the entire enterprise.
(2) Business unit strategy
Business unit strategy is a strategy in which a business unit competes under the guidance of the overall strategy, also known as competitive strategy. The "business unit" is given certain strategic decision-making powers, and can make strategic planning and strategic decisions about products and markets according to the state of the external market, with the goal of achieving a competitive advantage. For a single-business company, there is only one overall strategy and business unit strategy, that is, two are combined; The distinction between overarching strategy and business unit strategy only makes sense for companies with diversified businesses.
(3) Functional strategy
Functional strategy refers to the strategy developed by each functional department in the enterprise to guide functional activities, and describes the methods and means adopted by each functional department in the enterprise in the process of implementing the overall strategy and the strategy of the business unit. It mainly involves various functional departments within the enterprise, such as marketing, finance, production, R&D, human resources, information technology, etc., whose main responsibilities are how to better allocate internal resources of the enterprise, serve strategies at all levels, and improve organizational efficiency.
【Example 5 Multiple Choice】Among the following options, the one that belongs to the company-level strategy is ( ).
A. A steel company has researched and developed a new technology
B. B catering company invests in the establishment of food ingredient base
C. C Real Estate Company increases the sale of the property by reducing the price
D. D Logistics Company reorganized its human resource management and improved the performance management of employees
【Answer】B
【Analysis】The company's strategy is to select the business areas that the enterprise can compete with according to the objectives of the enterprise, reasonably allocate the resources necessary for the operation of the enterprise, and make the various business support and coordinate with each other. Option B indicates that Company B enters a new business area on the basis of its original business, and therefore belongs to the company-level strategy. Options A, C, and D belong to functional strategies, where option A belongs to R&D strategy, option C belongs to marketing strategy, and option D belongs to human resources strategy.
【Example 6 Multiple Choice】Company B is a steel manufacturing enterprise, in order to stabilize the supply channels and prices of raw materials. In March 2013, it acquired an iron ore production company and completely restructured it, injecting huge funds into the iron ore company's production capacity, hoping to cope with competitor competition through economies of scale. In just over one year, the iron ore company is far ahead of its competitors in the market competition through low cost. The strategy implemented by Company B for the iron ore enterprise belongs to ( ).
A. Overall Strategy B. Functional Strategy
C. Marketing Strategy D. Business Unit Strategy
【Answer】D
Business unit strategy is a strategy in which a business unit competes under the guidance of the overall strategy, also known as competitive strategy. In this case, the iron ore company, as a business unit, responds to the competition of competitors through economies of scale, which is a strategy realized at the business unit level.
【Example 7 Multiple Choice Question】Among the following statements about the strategy of the business unit, the correct one is ( ).
A. Business unit strategy is concerned with the markets in which competitive advantage can be achieved
B. Some enterprises only have a company-level strategy, but no business-level strategy
C. Enterprises that compete on a single product and a single channel have their overall strategy and business unit strategy combined into one
D. In a diversified company, it is necessary to develop both the overall strategy and the business unit strategy
【Answer】ACD
Business unit strategy refers to the strategy of competition between a business unit under the guidance of the overall strategy, also known as competitive strategy. The goal of the business unit strategy is to achieve competitive advantage, and its main content is: to decide how to create value for products in a particular market, including deciding to differentiate products from competitors, introducing new products and exiting old products, whether to become a technology leader, etc., option A is correct. If a business operates only in one particular market and the corporate strategy and the business unit strategy are at the same level, there is no need to distinguish between the two, so option B is wrong and option C is correct. A "business unit" is a part of a business whose products or services have an external market that is different from other business units. Business units are divided by market, and different business units need to develop different strategies due to the different markets they are facing, and option D is correct.
Section 2 Strategic Management of the Company
First, the strategic management process
Founded in 1991, A Electric Co., Ltd. is currently the world's largest state-owned professional air-conditioning enterprise integrating R&D, production, sales and service. In 2013, when formulating the development plan for the next five years, the company required all departments to actively submit strategic plans, and the top management of the company coordinated and balanced on the basis of the strategic plans submitted by each department, and confirmed the strategic plans of each department after making necessary modifications. Based on the above information, it can be judged that the method of forming the company's strategy is ( ).
A. top-down B. bottom-up
C. Upper and lower binding D. Upper and lower separation
【Answer】B
According to the degree to which managers at different levels are involved in strategic analysis and strategic selection, the methods of strategy formation can be divided into three forms: top-down, bottom-up and top-down combination. The bottom-up approach refers to the fact that the top management of the enterprise does not make rigid rules for the subordinate departments when formulating the strategy, but requires each department to actively submit the strategic plan. On the basis of the strategic plan submitted by each department, the top management of the enterprise coordinates and balances it, and confirms the strategic plan of each department after making necessary modifications.
After 13 years of development, Company A has 8 physical stores in Beijing According to the company's strategy, in the past two years, with the "screen transfer" of more consumers, they began to use fragmented time to shop on mobile devices such as mobile phones, and Company A also seized the change in consumer behavior and launched the strategic layout of omni-channel retail. To this end, Company A gathered the management backbone of each department to form a project team to evaluate the plan. In its evaluation, the project team focused on the benefits and risks of the solution, as well as the current and possible future resources of the company. Based on the above information, it can be judged that the criteria that Company A mainly relies on when evaluating its strategic plan are ( ).
A. Feasibility Criteria B. Profitability Criteria
C. Suitability Criteria D. Acceptability Criteria
【Answer】A
【Analysis】Three criteria are usually used to evaluate strategic alternatives: first, the suitability criterion, which considers whether the selected strategy gives full play to the advantages and disadvantages of the enterprise, whether it takes advantage of the opportunity, minimizes the threat, and whether it helps the enterprise achieve its goals; the second is the acceptability criterion, which considers whether the chosen strategy can be accepted by the stakeholders of the enterprise; The third is the feasibility criterion, and the evaluation of the strategy must ultimately be implemented on the financial indicators of strategic benefits, risks and feasibility analysis. Therefore, the criterion that Company A mainly relies on when evaluating its strategic plan is the feasibility criterion.
(3) Strategy implementation (the answer to the question is "how to translate strategy into practice")
Strategy implementation is all about translating strategy into action, and in order to put it into action, some key decisions need to be made.
(1) In order for the strategy to be successful, the enterprise needs to have an effective organizational structure. Formulating an organizational structure involves how to distribute the scope of job responsibilities and decision-making power within the enterprise, and the following decisions need to be made: (1) whether the number of management levels in the enterprise is high or flat; (2) whether decision-making power is centralized or decentralized; (3) whether the type of organizational structure of the enterprise can adapt to the strategic positioning of the company; Wait a minute.
(2) The management of personnel and systems is quite important.
(3) Corporate politics plays an important role.
(4) Strategy implementation involves the selection of appropriate organizational, coordinated, and control systems.
(5) To ensure the success of the strategy, it is necessary to coordinate the strategy, structure, culture and control of the enterprise. Different strategies and environments place different demands on companies, so they require different structures, cultural values, and control systems.
The practice of enterprise strategic management shows that strategy formulation is important, and strategy implementation is equally important. A good strategy is only the premise of strategy success, and effective strategy implementation is the guarantee for the smooth realization of enterprise strategic goals. On the other hand, if the enterprise is not able to formulate a suitable strategy perfectly, but in the process of strategy implementation, it can overcome the shortcomings of the original strategy, which may eventually lead to the improvement and success of the strategy.
【Tips】Strategic management is a cyclical process, not a one-time work, and the strategy implementation process should be constantly monitored and evaluated. Correction of the original analysis, selection and implementation is a cyclical process.
【Example 10 Multiple Choice Questions】When choosing an appropriate strategy formulation method, enterprises should consider the following factors:
A. Guarantee the overall goal of the enterprise
B. Motivation of middle and lower managers
C. Coordination of strategic plans of various departments of the enterprise
D. Control of all departments of the enterprise
【Answer】ABC
【Analysis】Enterprises can choose appropriate strategy formulation methods from multiple perspectives such as the guarantee of the overall goal of the enterprise, the enthusiasm of middle and lower managers, and the coordination of the strategic plans of various departments of the enterprise.
2. Strategic change management
(1) The meaning of strategic change (★★)
According to the different degrees of change, there are two kinds of changes that are generally recognized by the theoretical circles at present: gradual change and revolutionary change.
Incremental change believes that the change of the enterprise should be adapted to people's receptivity, and the change should be carried out gradually within the appropriate scope. Revolutionary change, on the other hand, believes that radical organizational change cannot be completed piecemeal and intermittently, and that the change of the enterprise must be carried out quickly, and new operating rules and processes must be established in a short period of time.
1. The difference between incremental change and revolutionary change
(1) Incremental change. Advocates of incremental change see change as a process through which an organization responds to a problem or achieves an organization's goals in a progressive manner over a period of time, according to the company's strategy. Over a longer period of time, the organization is transformed by reacting in this gradual way to the internal and external environmental pressures of the organization.
(2) Revolutionary change. Proponents of revolutionary change argue that change needs failure or crisis to spark. It is only when people are faced with difficulties that existing organizations cannot overcome that they create and embrace new solutions. To solve a crisis, it is necessary to break the inertia of existing systems and create new ways of working with existing resources, so it is necessary to create or create crises if change is to be accepted on a larger scale.
Incremental change versus revolutionary change
Characteristics of incremental change
Features of revolutionary change
It happens a lot throughout the business lifecycle
Steadily promote change
Affect certain parts of the enterprise system
Doesn't happen often in the enterprise lifecycle
Full conversion
Affect the entire enterprise system
2. The stage of development of strategic change
In the long run, businesses may evolve and change their strategies. Johnson and Xerox noted in 1989 that the change was gradual. This is because incremental change is manageable from a corporate perspective, and is less of a nuisance to the functioning of the corporate system than a revolutionary change (see figure below).
(1) Continuous phase: In this phase, there are basically no major changes in the strategy formulated, only some minor revisions.
(2) Gradual stage: In this stage, the strategy changes slowly. This change can be piecemeal or systemic.
(3) Continuous change stage: In this stage, strategic change presents the characteristics of no direction or no center of gravity.
(4) Comprehensive stage: In this stage, the corporate strategy is a revolutionary or transformative change in a relatively short period of time.
【Example 11 Multiple Choice】In the four stages of development of incremental change proposed by Johnson and Xeros, if there is a slow change in strategy. This change can be piecemeal or systemic. Then, this stage belongs to ( ).
A. Continuous phase B. Progressive phase
C. Constant Change Phase D. Comprehensive Phase
【Answer】B
【Analysis】In the four stages of development of gradual change, the strategy of the gradual stage changes slowly. This change can be piecemeal or systemic.
【Example 12 Multiple Choice Questions】The following are the characteristics of gradual change.
A. Frequent occurrence in the life cycle of the enterprise B. Steady progress of change
C. Affect certain parts of the enterprise system D. Affect the entire enterprise system
【Answer】ABC
【Analysis】The characteristics of gradual change are: (1) it often occurs in the life cycle of enterprises; (2) steadily promote change; and (3) affect certain parts of the enterprise system. Option D is a feature of revolutionary change.
(2) Drivers of strategic change (★)
In business, there will be some changes over time. Changes can come from the external environment or from the internal environment. In most cases, the following changes can be the main drivers of strategic change in a company:
Drivers of change in the business
explain
Changes in the external environment
Changes in competitors' businesses, changes in consumer consumption goals and patterns, changes in policies and laws, changes in social behaviors and attitudes, changes in economic development, etc.
Changes in technology and working methods
These changes can also be caused by changes in the environment, such as the emergence of new technologies and new regulations on work safety.
Changes in products and services
This is due to consumer demand, competitor behavior, the emergence of new technologies, etc. For example, when a mobile phone manufacturer shifts from product-centric to customer-centric, a shift in service approach may not result in a change in the company's offerings, but may require a significant change in organizational culture.
Changes in management and working relationships
For example, changes in leadership styles and the way employees work, as well as changes in education and training, and so on.
Changes in organizational structure and size
These include the creation of new departments, more delegation of authority or centralization, changes in the way the plan is made, the provision of management information and the implementation of controls, and so on.
Changes caused by mergers and acquisitions
The future management wants to improve the existing structure and integrate the company into the new parent company structure and system. This will include changes to the name and logo, as well as more profound changes in organizational structure, culture, job roles, number of employees, and management systems.
(3) Types of strategic change (★★)
In 1992, Defut classified the strategic changes that companies implement in order to adapt to the environment and survive in market conditions, and there are four types:
1. Technological change
Technological change often involves a company's production processes, including the development of knowledge and skills that enable it to compete with competitors. These changes are aimed at making businesses more efficient or increasing their output. Technological change involves technologies for producing products and services such as working methods, equipment, and workflows. For example, the technological change of a wastewater treatment plant refers to the design of an efficient wastewater recycling system, and it can also use advanced information technology to disseminate technical knowledge within the organization.
2. Product and service change
Product and service change refers to the change of the product or service output of the enterprise, including the development of new products or the improvement of existing products, which greatly affects the market opportunity. For example, a machine tool company transforms itself into a full-service provider in the face of fierce external competition. It offers not only machine tools, but also all industrial plastics, fluids, chemicals. Today, the machine tool business accounts for only a quarter of the company's total profits. New products and services have helped it expand its market and customer base, allowing it to survive successfully in this industry.
3. Structural and systemic change
Structural and system change refers to the change of management methods of enterprise operations, including changes in organizational structure, changes in enterprise policies, and changes in control systems. Structural and system change refers to the change in the field of organizational management, which involves the monitoring and management of the organization. Structural and systemic change is usually done from the top down, that is, the change is ordered by the top management. Product and service change is usually done from the bottom up. Corporate layoffs, for example, are an example of top-down structural change.
4. Personnel change
Personnel change refers to the change in the values, work attitudes, skills and behaviors of employees, with the aim of ensuring that employees work hard to achieve corporate goals. For example, a company that supplies specialty metals to the chemical industry has a culture characterized by suspicion and distrust. Managers often force changes without consulting employees, and sometimes abruptly change management methods and policies. Later, the company changed its culture and began to respect the value of its employees, encourage their participation, and gain a new understanding of management. This makes the company's product quality have been greatly improved.
The above four kinds of change are not isolated from each other, and one change often leads to another. A new product may cause a change in production technology, while a change in organizational structure may require employees to learn new skills. For example, if a life insurance company wants to use computer technology to process claims, it must adjust its organizational structure to divide its staff into teams of 5-7 people to achieve its goals well. This change in organizational structure is a derivative of technological change. For example, if a manufacturing company wants to introduce robots and advanced manufacturing technology, then it must train its employees in this area. The upgrading of employees' skills will lead to changes in the payroll system. In short, an enterprise is composed of interconnected and mutually influencing systems, and changes in one part will inevitably lead to changes in other parts.
【Example 13 Multiple Choice Questions】The following types of strategic change proposed by Daifut are ( ).
A. Technological change B. Product and service change
C. Structural and systemic change D. Personnel transformation
【Answer】ABCD
【Analysis】In 1992, Daifut classified the strategic changes implemented by enterprises in order to adapt to the environment and survive under market conditions, and there were four types: (1) technological change; (2) product and service changes; (3) structural and systemic change; (4) Personnel change.
(4) Timing of strategic change (★★ 4)
There are three options for strategic change timing, and forward-thinking organizations should choose the first option to avoid paying the price of change too late.
The timing of change
Content elaboration
Advance change
Managers are able to anticipate future crises in a timely manner and make necessary strategic changes in advance. Companies that can make timely and advanced strategic changes are the most viable companies.
Reactive change
In this case, the business already has a tangible, tangible crisis, and has already paid a price for too late change.
Crisis change
At this time, there is a fundamental crisis in the enterprise, and if the strategic change is not carried out, the enterprise will face bankruptcy and bankruptcy. Crisis change is a forced change, and enterprises often pay a large price to achieve the results of change.
【Example 14 Multiple Choice Question】The strategic change made by an enterprise that has perceived the crisis and has paid a certain price for the crisis is called ( ).
A. Advance change B. Reactive change
C. Crisis change D. Necessary change
【Answer】B
【Analysis】This question assesses the timing of strategic change. Reactive change is when a business already has a tangible, tangible and perceived crisis and has paid a price for delaying the change. Therefore, option B is correct.
【Example 15 Multiple Choice】Lidao Industrial is a catering conglomerate in Hong Kong, the major shareholder Cai Tai Fook is approaching retirement age, and his daughter Cai Jialun has been working in Lidao Industrial for a period of time after obtaining a master's degree in business administration, so Cai Tai Fook appointed Cai Jialun as the general manager of Lidao Industrial. After Cai Jialun took over, he first analyzed the current situation and market situation of Lidao Industrial's catering business. The study shows that the environment facing Lidao Industrial is beginning to change somewhat, and although the company has not been affected at present, in order to maintain and improve profitability, Lidao Industrial must change its corporate strategy and business methods. Based on the above information, it can be judged that the timing of strategic change chosen by Cai Jialun is ( ).
A. Advance change B. Reactive change
C. Crisis change D. Lag change
【Answer】A
There are three options for the timing of strategic change: early change (managers can predict future crises in time and carry out necessary strategic changes in advance), reactive changes (in this case, the enterprise already has a tangible and perceptible crisis, and has already paid a certain price for the late change), and crisis change (at this time, the enterprise already has a fundamental crisis, and if the strategic change is not carried out, the enterprise will face bankruptcy and bankruptcy).
(5) Strategic change model (★★ 5)
Strategic change can be divided into two types according to its nature: gradual change and revolutionary change.
Correspondingly, the management of change can also be divided into two types: proactive and passive. Depending on the type of change and the different combinations of management's roles, the patterns of strategic change can be divided into four categories.
1. Coordination. When the role of management is proactive, and the nature of change is gradual, the change is a coordinated change.
2. Plan. When the role of management is proactive, and the nature of the change is revolutionary, the change is a planned change.
3. Acceptance. When the role of management is passive and the nature of change is gradual, the change is a passively accepted change.
4. Coercion. When the role of management is passive and the nature of the change is revolutionary, the change is a forced change.
【Example 16 Multiple Choice】In the strategic change model, when the role of management is proactive, and the nature of the change is revolutionary, this kind of change is ( ).
A. Coordinate change B. Plan change
C. Embrace change D. Force change
【Answer】B
【Analysis】This question examines the mode of strategic change. When the role of management is proactive and the nature of the change is revolutionary, the change is a planned change.
Scan/long press the QR code to help CPAs clear customs
Get the essence of the note review materials
Get the latest exam information
Obtain past session papers
Get the internal data of the Note Simulation
Note: 10,000 question bank download|WeChat search "10,000 question bank certified public accountant exam"
Strategic Direction of the Company, Essay on Strategic Risk Management of the CompanyEssay on strategic risk management in the company
All students who study management know that enterprise strategic management can seek development direction for enterprises in a fierce competitive environment, and can determine the most important work content and competitive strategy of enterprises.
Essay on strategic risk management in the company
Abstract: The complexity, variability and uncertainty of the business environment make the company's strategic risk become the biggest risk faced by the enterprise, with the competitive situation from the traditional static competition to the dynamic competition gradually change, small and medium-sized enterprises have entered the era of strategic victory. If small and medium-sized enterprises want to survive and develop in a complex and changeable environment, strategic management is indispensable, and the correctness of strategic management is related to the rise and fall of small and medium-sized enterprises.
Keywords: strategic management; small and medium-sized enterprises; Type of strategy
introduction
With the increasingly fierce competitive situation, enterprise strategic risk management is also reflecting its importance in the process of enterprise growth. Reality shows that not all SMEs are able to grow into large enterprises in a sustainable manner. The reasons for the growth difficulties of small and medium-sized enterprises are very complex, and among many factors, the mistake of strategic adjustment of enterprises is a very important reason.
The strategic management of the enterprise is to realize the full use of the human, financial, material and other resources of the enterprise through analysis, forecasting, planning, control and other means and methods at the macro level, so as to optimize the management of the enterprise and improve the economic benefits of the enterprise. Today, when market competition is becoming increasingly fierce, strengthening the strategic management of enterprises is a powerful tool for improving the level and competitiveness of the management system of mainland enterprises.
1. Definition of enterprise strategic management
At this stage, the more comprehensive view of enterprise strategy is the famous 5P model proposed by Mintzberg and other scholars, which describes enterprise strategy in this way: enterprise strategy is a kind of plan from the perspective of the future development of the enterprise; From the perspective of the past development process of the enterprise, it is manifested as a development model (); From the perspective of industrial level analysis, it is manifested as a kind of development orientation (); From the perspective of the enterprise level, it is manifested as an enterprise concept (); In addition, strategy is also a strategic strategy (Ploy) that firms adopt in their competition [4].
Strategic management refers to the management of an enterprise's corporate strategy, which is mainly composed of two parts: strategy formulation and strategy implementation. We define enterprise strategic management in this way: an enterprise sets corporate strategic goals through the determination of its mission and according to the internal and external environmental conditions of the organization, in order to ensure that the corporate goals can be correctly implemented and realized, and relies on the internal strength of the enterprise to guide the planning and decision-making into implementation, and controls its progress in the process of implementation.
Strategic management has the following characteristics: enterprise strategy is the strategy that guides all the activities of the enterprise, and the focus of all management behaviors is the formulation and implementation of the strategy. However, the key to the development and implementation of the strategy is to analyze and examine the opportunities and threats in the external environment of the organization, as well as the strengths and weaknesses in the internal environment of the organization (i.e., SWOT analysis), through which the strategic goals of the enterprise are determined. The task of strategic management is to achieve the strategic goals of the enterprise in this dynamic environment through the formulation and implementation of strategies and daily supervision and management.
First, enterprise strategic management not only requires the analysis and formulation of strategy, but also requires enterprises to be able to put the formulated corporate strategy into action according to their own conditions, and often supervise the results of implementation, which shows that strategic management is a whole process of management;
Second, enterprise strategic management is not a static management process, but a dynamic management process of a cyclical nature. It requires the enterprise to continuously analyze and examine the changes in the external environment and internal conditions of the organization and the results of the implementation of the strategy, until it achieves the desired effect, which shows that strategic management is a kind of uninterrupted management.
Second, the main shortcomings of the strategic management of small and medium-sized enterprises in the mainland
At present, mainland small and medium-sized enterprises account for a very large proportion of the total number of enterprises in the country, reaching more than 98 percent. Small and medium-sized enterprises (SMEs) have made significant contributions to technological innovation, job creation, and economic dynamism. However, even under such conditions, a large number of small and medium-sized enterprises face the situation of closure or bankruptcy every year. From the perspective of strategic management, we analyze the following three main reasons:
First of all, SMEs lack the concept of strategic management. At this stage, small and medium-sized enterprises still lack theoretical guidance, and this is also related to the background of the emergence of small and medium-sized enterprises.
Second, SMEs have limited capacity to develop strategies. There are some owners of small and medium-sized enterprises who do not have a clear understanding of the strategy of enterprise strategy, and believe that enterprise strategy will restrict the development of enterprises; Some small and medium-sized enterprises gradually realize the importance of strategic management in the process of growth, but they lack the necessary theoretical knowledge and skills to formulate strategies due to the limitations of their own conditions. There are also a small number of small and medium-sized enterprises that do not have a clear concept of strategic planning and mistake it for a plan, which affects their development.
3. Types of strategic choices for small and medium-sized enterprises
At present, the theoretical community has a wide range of research on the strategic choice of enterprises, and the strategic choices of small and medium-sized enterprises mainly include business-level strategy, company-level strategy and functional strategy.
Business-level strategy is also known as competitive strategy: from the different levels of enterprise strategy, the company's strategic direction is viewed, and its strategy plays a different role in influencing the performance of the organization, among which the business-level strategy has an important impact on the performance of the enterprise, so it is extremely important for the achievement of the strategic goals of small and medium-sized enterprises. Some researchers have proposed that the competitive strategy of small and medium-sized enterprises can choose focus strategy, differentiation strategy and alliance strategy.
Company-level strategy: The scale of small and medium-sized enterprises is not large, and their organizational structure design is often relatively simple, so there is not much direct research on the strategy of small and medium-sized enterprises. Scholars Ye Zhigui and Yan Guanghua pointed out that one aspect that affects the competitive advantage of small and medium-sized enterprises in strategic choice is the strategic field. In the early stage of growth, the strategic field of the organization focuses on the business operation plan, and in the later stage of growth, the strategic field of the enterprise focuses on the strategic plan with a long-term direction. In today's global environment, small and medium-sized enterprises must establish a correct understanding of the company's strategic direction with the concept and awareness of globalization, make good use of the international stage, and choose an international strategy.
Functional Strategy: Some scholars have studied the strategy of technology-based SMEs, and the results show that the degree of concentration of strategy is directly related to the areas where technology and market change rapidly, and companies with a wide range of products will achieve higher performance. Small and medium-sized enterprises should innovate the core competitiveness of enterprises according to the characteristics of their own industries.
IV. Conclusions
Adam Smith once pointed out that "the development of any market economy can only function properly on the basis of shared ethical and moral values". It can be seen that in the process of enterprise growth, corporate social responsibility and ethics are also very important. In the current international environment, if the mainland's small and medium-sized enterprises are motivated to grow into competitive enterprises, they must pay attention to the traditional culture of the mainland and establish their own ethical and moral system according to the basic national conditions and cultural differences of the mainland, and integrate it into the development strategy of the enterprise. Many examples of enterprise development show that the more an enterprise develops and grows, the more it must pay strategic attention to the social responsibility and ethical construction of the enterprise, and give up the ethical and moral values in order to blindly pursue the economic interests of the enterprise, then it will be eliminated by the society and eventually go to extinction; If corporate social responsibility and ethics can be integrated into the corporate strategy, then the goals of the enterprise will be easily achieved, and the enterprise and its employees, the government and the society can develop harmoniously and move towards glory.
Strategic management is a kind of management with ideology and innovation as the main characteristics, and needs to rely on scientific theoretical knowledge and methods as guidance. Small and medium-sized enterprises (SMEs) play a key role in the creation of wealth in mainland China. In the process of growing and expanding, small and medium-sized enterprises must realize the importance of strategic management for enterprises, fully understand the necessity of strategic management for their growth and the economic benefits that can be brought to enterprises, use scientific methods to analyze and formulate enterprise strategies, and put the strategy into practice, clarify the future development direction of enterprises, open up new markets, and maintain core competitiveness, only in this way can the production and operation of small and medium-sized enterprises be able to achieve long-term and stable development.
Bibliography:
[1] Xiang Guopeng, Wang Jinling; Strategic Management of Small and Medium-sized Enterprises:Theoretical Review and Preliminary Analytical Framework[J].Technoeconomics; 2008(7).
[2] Zhou Invention; On the strategic transformation of the growth process of small and medium-sized enterprises[J].Economic Vertical; 2006(9).
[3] Jian Zhaoquan et al.; The evolution and development trend of strategic management[J].Scientific management research; 1999(6).
[4] Ku Ying; Analysis of the problems and countermeasures of the strategy of small and medium-sized enterprises in mainland China[J].Modern enterprise education; 2009(5)
【Corporate Strategic Risk Management Papers】Related Articles:
1. Dissertation on financial risk management and control methods for construction enterprises
2. The latest version of the Measures for the Management of Risk Control Indicators of Securities Companies
3. The company's financial risk analysis report
4. Learn the experience of enterprise strategic management
5. Financial risk management self-inspection report
6. Strategic Essay on Building a Cyber Power
7. Measures for the management of the full amount of risk contracting management fees
8. Measures for the management of construction project risk early warning
9. Learn the experience of enterprise strategic management