O'Reilly logo

Wiley CIAexcel Exam Review 2014 Focus Notes: Part 3, Internal Audit Knowledge Elements by S. Rao Vallabhaneni

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Domain 5

Focus on: Management and Leadership Principles (10–20%)

STRATEGIC MANAGEMENT

Strategic Management Process

Strategic management is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. Managers ask questions such as, “What changes and trends are occurring in the competitive environment? Who are our customers? What products or services should we offer? How can we offer those products and services most efficiently?” Answers to these questions help managers make choices about how to position their organization in the environment with respect to rival companies. Superior organizational performance is not a matter of luck. It is determined by the choices that managers make. Top executives use strategic management to define an overall direction for the organization, which is the firm’s grand strategy. The strategic management process is defined as a series of activities, such as grand strategy, strategy formulation, strategy implementation, and strategic control.

Grand Strategy

Grand strategy is the general plan of major action by which a firm intends to achieve its long-term goals. Grand strategies can be defined for four general categories: (1) growth, (2) stability, (3) retrenchment, and (4) global operations.

Strategy Formulation

The overall strategic management process begins when executives evaluate their current position ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required