Unit 3: Strategic management - short ans

What is the main purpose of strategic management?

Strategic management consist of the analyses, decisions and actions an organization undertakes in order to create and sustain competitive advantages

Why is operational effectiveness alone not enough for a company to achieve a sustainable competitive advantage?

What are the three major phases of crisis management?

- pre -crisis: deal with preparation and prevention

+ Preparation entails developing a crisis management plan, training the responsible team, and exercising to test the plan

+ Prevention seeks to minimize the risks known to exacerbate the chances of crisis

- Crisis response entails responding to an unexpected event. This includes conveying the message to the public shortly after the event occurs and repairing an org's reputation.

- Post-crisis: is where all activities return to normal. At this stage, the crisis stops being the point of focus. Managers continue with reputation repair and keep providing follow-up messages

How does crisis management differ from risk management?

1. Meaning:

- CM: Is the process that an org follows in dealing with an unexpected event that could adversely impact an org

- RM: Refers to all processes carried out by an org to identify possible threats. It also encompasses all the steps an org can take to mitigate the threats or minimize their impacts

2. Purpose:

- CM: Aims to minimize the tension that can arise in an org due to a crisis

- RM: Seeks to identify and understand the potential threat and design a plan to deal with them

3. Process:

- CM: Is widely reactive as it is done after an adverse event has already occurred.

- RM: Is proactive as it addresses any possible event ITF

4. Type of event:

- CM: Deal with unknown and unforeseen events

- RM: The potential events that could arise ITF

What role does communication play in crisis management?