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Inputs

The Strategic Management Inputs from the external environment may include people, capital, and managerial skills, as well a technical knowledge and skills. In addition, various groups of people will make demands on the enterprise.For example, employees want higher pay, more benefits, and job security. On the other hand, consumer demands safe and reliable products at reasonable prices. Suppliers want assurance that their products will be bought. Stockholders want not only a high return on their investment but also security for their money. Federal, state and local governments depend on taxes paid by the enterprise, but they also expect the enterprise to comply with their laws. [ Strategic Management Inputs ]
Similarly, the community demands that the enterprise is ‘good citizens‘ providing the maximum number of jobs with a minimum of pollution. Other claimants to the enterprise may include financial institutions and labour unions, even competitors have a legitimate claim for fair play. [ Strategic Management Inputs ]

Strategic Management Inputs

Enterprise Profile

The enterprise profile is ua1ly the starting point for determining where the company is and where it should go. Thus, top managers determine the basic purpose of the enterprise and clarify the firm’s geographic orientation, such as whether it should operate in selected region in all states in the United States, or even in different countries. In addition, managers assess the competitive situation of their firm. [ Strategic Management Inputs ]

Orientation of Top Managers

The enterprise profile is shaped by people, especially top managers, and their -orientation is important for formulating the strategy. They set the organisational climate, and they determine the direction of the firm. Consequently, their values, their preferences, and their attitudes toward risks have to be carefully examined because they have an impact on the strategy. [ Strategic Management Inputs ]

Purpose and objectives

The purpose and the major objectives are the end points toward which the activities of the enterprise are directed. Since the previous chapter dealt with these topics at length, addition discussion here is unnecessary.

External Environment

The present and future; external environment must be assessed in terms of threats and opportunities. The evaluation focuses on economic, social, political, legal, demographic, and geographic factors. In addition, the environment is scanned for technological development, for products and services on the market, and for other factors necessary in determining the competitive situation of the enterprise. [ Strategic Management Inputs ]

Internal Environment

Similarly, the firm’s internal environment should be audited and evaluated with respect to its resources and its weaknesses and strengths in research and development, production, operations, procurement, marketing, and products and services. Other internal factors important for formulating a strategy include the assessment of human resources, financial resources, and other factors such as the company image, the organisation structure and climate, the planning and control system, and relations with customers.
These are just a few examples of possible strategies. In practice, companies, especially large ones, pursue a combination of strategies. [ Strategic Management Inputs ]