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STRATEGIC MANAGEMENT - II

THE STRATEGIC MANAGEMENT PROCESS

The strategic management process is an eight-step process that encompasses strategic planning, implementation, and evaluation.

• The first step is identifying the organization’s current mission, objectives, and strategies.
  1. Every organization needs a mission, which defines the purpose of the organization. What is the organization’s reason for being in business?
  2. It’s also important to identify the organization’s current objectives and strategies, as well.

Read more: MGT503-Princilpes of Management-Lecture Handout No 26

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REGIONAL AND ECONOIC INTEGRATION

The Euro

Prior to the implementation of the Euro (the single European currency), member countries moved to converge their economies by

• Reducing inflation so that each country’s inflation would be no more than 1.5 percentage points above the average of the three lowest inflation rates in Europe
• Reducing long-term interest rates so that each country’s rate would be no more than two percentage points above the average of the three lowest.
• Reducing the government’s budget deficit to no more than 3.5% of GDP
• Reducing the stock of public debt so that it would not exceed 60% of GDP.

Eleven countries adopted the Euro as of January 1999. The Euro will show up as an actual bank note (replacing individual currencies) in 2002. It is already widely used for a variety of no cash transactions.

Implications of the EU:

Although Europe is moving closer together through the Euro and the Single Market program, it is still not as homogenous as the U.S. market. Differences in languages, cultures, and governments still splinter Europe, and the eventual addition of new countries will create even more divisions in the market. Companies need to develop a pan-European strategy without sacrificing different national strategies.

Read more: MGT520 - International Business - Lecture Handout 40