MNG3701 Exam Prep
The vision statement is the dream of the organisation and describes its desired
future position. It provides a clear picture of what the organisation hopes to
achieve in the long term, serving as inspiration and motivation for members. It
focuses on the organisation’s future direction and is often ambitious or idealistic.
The mission statement, on the other hand, is the purpose statement of the
organisation. It explains what the organisation does and why it exists. It outlines
the organisation’s products or services, target market, and the technology or
methods used to deliver them. Unlike the vision, it focuses on the organisation’s
current activities and purpose.
United Nations Sustainable Development Goals (SDGs):
1️⃣ No Poverty (SDG 1) — End poverty in all its forms everywhere.
2️⃣ Zero Hunger (SDG 2) — End hunger, achieve food security and improved
nutrition, and promote sustainable agriculture.
3️⃣ Good Health and Well-being (SDG 3) — Ensure healthy lives and promote wellbeing for all at all ages.
4️⃣ Quality Education (SDG 4) — Ensure inclusive and equitable quality education
and promote lifelong learning opportunities for all.
5️⃣ Gender Equality (SDG 5) — Achieve gender equality and empower all women
and girls.
6️⃣ Clean Water and Sanitation (SDG 6) — Ensure availability and sustainable
management of water and sanitation for all.
7️⃣ Affordable and Clean Energy (SDG 7) — Ensure access to affordable, reliable,
sustainable, and modern energy for all.
8️⃣ Decent Work and Economic Growth (SDG 8) — Promote sustained, inclusive,
and sustainable economic growth, full and productive employment, and decent
work for all.
9️⃣ Industry, Innovation and Infrastructure (SDG 9) — Build resilient
infrastructure, promote inclusive and sustainable industrialization, and foster
innovation.
🔟 Reduced Inequalities (SDG 10) — Reduce inequality within and among
countries.
11️⃣ Sustainable Cities and Communities (SDG 11) — Make cities and human
settlements inclusive, safe, resilient, and sustainable.
12️⃣ Responsible Consumption and Production (SDG 12) — Ensure sustainable
consumption and production patterns.
13️⃣ Climate Action (SDG 13) — Take urgent action to combat climate change and
its impacts.
14️⃣ Life Below Water (SDG 14) — Conserve and sustainably use the oceans,
seas, and marine resources for sustainable development.
15️⃣ Life on Land (SDG 15) — Protect, restore, and promote sustainable use of
terrestrial ecosystems, sustainably manage forests, combat desertification, halt
and reverse land degradation, and halt biodiversity loss.
16️⃣ Peace, Justice and Strong Institutions (SDG 16) — Promote peaceful and
inclusive societies for sustainable development, provide access to justice for all,
and build effective, accountable, and inclusive institutions at all levels.
17️⃣ Partnerships for the Goals (SDG 17) — Strengthen the means of
implementation and revitalize the global partnership for sustainable development.
Stakeholders
Stakeholders are the people or groups that have an interest in, or are affected by,
an organisation’s actions. They can be divided into primary and secondary
stakeholders.
Primary stakeholders are those directly involved in the organisation’s daily
operations, such as employees, customers, and suppliers.
Secondary stakeholders are not involved in everyday activities but still influence
or are influenced by the organisation — for example, government departments,
the media, and the general public.
Who are the stakeholders of an organisation?
There are two main perspectives on who counts as stakeholders — the narrow
view and the broader view.

The narrow view focuses only on people or groups that are directly
connected to the organisation’s core business and financial activities. This
includes employees, suppliers, customers, and financial institutions. These
stakeholders are seen as essential to the organisation’s economic
success.

The broader view expands beyond the organisation’s internal operations to
include external groups affected by its activities. This includes local
communities, government bodies, non-governmental organisations
(NGOs), and society as a whole. This perspective highlights the
organisation’s social responsibility and acknowledges that its decisions
have wider impacts on society and the economy.
Competitive advantage
A competitive advantage is the unique strength that allows a business to perform
better than its competitors. It may come from lower costs, superior quality, strong
branding, innovation, or excellent customer service, enabling the organisation to
achieve higher sales or profits.
SMART Goals
SMART is an acronym that stands for Specific, Measurable, Achievable, Realistic,
and Timely. Therefore, a SMART goal incorporates all of these criteria to help focus
your efforts and increase the chances of achieving your goal.

Specific: Goals must clearly define what is to be achieved by addressing who,
what, where, when, and why.

Measurable: Goals need criteria to track progress and determine when they are
achieved.

Achievable: Goals should be attainable with the available resources and
capabilities.

Realistic: Goals must be feasible given the time and resources and should be
something the individual can commit to.

Timely: Goals must have a start and finish date to provide urgency and
motivation.
Example: Obtain a gym membership at the local community center, work out four
days a week, aim to lose one pound of fat per week, and achieve four pounds lost
by the end of the month.
https://corporatefinanceinstitute.com/resources/management/smart-goal/
The Balanced Scorecard
The Balanced Scorecard aims to provide a more comprehensive view of organizational
performance beyond traditional financial measures by incorporating these additional
perspectives. It serves as a framework for translating an organization’s strategic
objectives into a coherent set of performance measures, providing a more balanced
view of how well the organization is achieving its long-term goals.
Financial Perspective
Focuses on the financial objectives of the organization and measures the economic
impact of actions from the other perspectives. Traditional metrics include revenue
growth, cost reduction, cash flow, and ROI, often complemented by forward-looking
indicators.

Key Components: Revenue growth and mix, cost management, asset utilization
(ROA, ROE), and investment strategy (payback period, IRR, EVA).

Importance: Ensures strategies improve the bottom line and align with
shareholder expectations while highlighting the need for non-financial
perspectives.
Customer Perspective
Focuses on the value delivered to customers to achieve financial success and
sustainable growth.

Key Objectives: Customer satisfaction, retention and loyalty, market share and
acquisition, and alignment of the value proposition with customer needs.
Internal Business Processes Perspective
Focuses on the critical operations and processes needed to meet customer and
financial objectives.

Key Objectives: Operational efficiency, process quality, innovation and product
development, and effective supply chain management.
Learning and Growth Perspective
Also called the Organizational Capacity perspective, it focuses on intangible assets like
people, systems, and organizational culture to enable continuous improvement and
innovation.

Key Objectives: Employee skills and knowledge, employee satisfaction and
retention, information systems and technology, and organizational culture and
alignment.
Principles of responsible management
Responsible Management
Responsible management is a type of management that integrates sustainability,
responsibility, and ethics into business practices (Laasch & Conaway, 2015).

Sustainability is addressed through the triple bottom line, which requires
businesses to perform not just for profit but also for the environment (planet) and
society (people). To be sustainable, a business must:
o
Be profitable (economic sustainability)
o
Take responsibility for the physical environment it operates in
(environmental sustainability)
o
Meet social responsibilities toward the community (social sustainability)

Responsibility focuses on stakeholder engagement to optimise value for all
stakeholders, not just shareholders. Stakeholders can be viewed in a narrow
sense (employees, suppliers, customers, financial institutions) or a broader
sense (community, government, NGOs, society at large).

Ethics refers to the study of right and wrong conduct in a business context,
guiding managers to make morally sound decisions.
Strategic leaders can analyse a particular competitor in detail by applying the fourcorner analysis to predict what that competitor may do in the future. This tool
examines not only a competitor’s current strategy and capabilities but also what
motivates them by analysing their drivers and management assumptions. It helps
leaders understand competitors in terms of both motivation and actions, as outlined
below:
Motivation:

Drivers: Identify what motivates the competitor, their agenda or intentions, and
how these shape their overall strategy.

Management assumptions: Examine the competitor’s perceptions and
assumptions about the industry and themselves — what they believe to be true
— and how these influence their strategy compared to the actual reality.
Actions:


Strategy: Analyse the competitor’s current strategy, how well it is being
implemented, their performance, and whether they may change direction if
unsuccessful.
Capabilities: Assess the competitor’s strengths and resources that give them a
competitive advantage, such as patents, marketing ability, financial strength, or
access to key resources.
PESTLEG
Just as PESTLEG can be applied at the global and regional level to identify key
factors affecting business, it can also be applied at the national level.
Political:
Political factors affecting South Africa currently include political instability. The creation
of coalition governments at a provincial and local level has brought with it a level of
policy uncertainty. Levels of corruption in the country, as reflected in the state capture
investigation and reports of the Zondo Commission, harm business activity.
The political segment centers on the role of governments in shaping business. This
segment includes elements such as tax policies, changes in trade restrictions and
tariffs, and the stability of governments
Economic:
Economically, South Africa has been experiencing a low growth rate for several years,
and its sovereign debt status has been at risk. Furthermore, government borrowing has
increased in servicing this debt, meaning less money is available for social and
economic activity.
The economic segment centers on the economic conditions within which organizations
operate. It includes elements such as interest rates, inflation rates, gross domestic
product, unemployment rates, levels of disposable income, and the general growth or
decline of the economy
Social:
Social factors affecting business in South Africa include low education levels, high levels
of unemployment, and high levels of inequality. Furthermore, from a health perspective,
South Africa is burdened by lifestyle diseases such as HIV/AIDS, tuberculosis, heart
disease, and diabetes. South Africa is known for the unique quadruple health burden
that it bears. This refers to the combined impacts of (1) HIV/AIDS and tuberculosis, (2)
high maternal and child mortality, (3) high levels of violence and injury, and (4) an
increasing prevalence of non-communicable diseases.
Social factors include trends in demographics such as population size, age, and ethnic
mix, as well as cultural trends such as attitudes
Technological:
Technologically, South Africa is struggling to generate enough electrical power for the
demands of industry and its citizens. On the other hand, its mobile networks and their
coverage are good, although expensive.
The technological segment centers on improvements in products and services that are
provided by science. Relevant factors include, for example, changes in the rate of new
product development, increases in automation, and advancements in service industry
delivery
Legal:
Legally, businesses have often complained that the regulations required to start and run
a business are incredibly onerous and impede economic growth and job creation. On
the other hand, labour regulations protect many workers’ rights, as well as those of the
employer.
The legal segment centers on how the courts influence business activity. Examples of
important legal factors include employment laws, health and safety regulations,
discrimination laws, and antitrust laws
Environmental:
Environmentally, South Africa has also been experiencing the effects of climate change,
including extreme weather conditions such as severe droughts in some parts of the
country and floods in others.
The environmental segment involves the physical conditions within which organizations
operate. It includes factors such as natural disasters, pollution levels, and weather
patterns
Global:
Integrated into the global economy, global factors also influence South African economic
activity. For example, the automotive industry has been a significant contributor to the
country's GDP, with its growth greatly facilitated by global original equipment
manufacturers or assemblers.
RBV Model
The Resource-Based View (RBV) is a model used to analyse an organization’s internal
environment to identify its strengths and weaknesses. It helps determine where the
organization can build competitive advantage, superior performance, and customer
value. The central idea is that organizations compete based on their resources and
capabilities.
Tangible Assets: These are physical resources like land, buildings, machinery,
equipment, and capital. While important, they provide little long-term advantage
because competitors can purchase the same assets.
Intangible Assets: These include non-physical resources such as brand reputation,
trademarks, and intellectual property. Unlike tangible assets, intangible assets are
unique, cannot be bought easily, and are often the main source of sustainable
competitive advantage.
https://strategicmanagementinsight.com/tools/resource-based-view/
Management levels
In a medium to large-sized organisation, there are typically three levels of management:
top management, middle management, and lower-level management.
Top Management

Includes the CEO, board of directors, and senior managers.

Responsible for setting the organisation’s strategic direction and analysing the
environment.

Uses gathered information to formulate strategies.

Becomes involved again during the strategy review process.
Top-Level Management: The Strategic Decision-Makers

Comprises C-suite personnel (CEO, COO, CFO), department heads, board of
directors, managing directors, etc.

Ensures the organisation survives and thrives, focusing on internal operations
and external influences like competition, technology, and economic disruptions.

Directly influences company policies, goals, strategic planning, budgeting, and
employee responsibilities.

Regularly interacts with shareholders and external stakeholders, adjusting
strategy according to influence and ownership.
Middle-Level Management: The Crucial Link

Positioned between senior management and frontline management.

Manages other managers and translates strategy into action.

Builds the systems and procedures needed to achieve organisational goals.

Ensures that plans and policies are effectively executed, communicating
strategies and goals from senior management.

Oversees staffing, training, and development of lower-level managers.

Responsibility levels may vary depending on company size; large organisations
may have senior and junior layers within middle management.
Lower-Level Management: The Frontline Supervisors

Includes supervisors, line managers, and operational managers.

Oversees daily tasks and actual production of work.

Ensures deadlines are met, quality and quantity of output are maintained, and
employee performance meets standards.

Maintains communication with workers, provides feedback, and relays
information up the chain of command.
https://www.amanet.org/articles/common-levels-of-management-in-organizations/
Activities During the Strategic Planning Phase:
– Establish the organization’s vision and mission.
– The organization should examine the
potential threats and opportunities in the external environment as well as have an
awareness of its strengths and weaknesses (internal analysis).
– Set SMART goals to achieve organizational
objectives.
– Consider strategies such as cost leadership and
differentiation.
Allocating Resources – Plan resources needed for strategy implementation, including
budgets, technology investments, and staff training.