DISCUSS SOME FORCES THAT INFLUENCE THE FORMALITY OF STRATEGIC-MAN...

124) Discuss some forces that influence the formality of strategic-management systems. Answer: Application of the strategic-management process is typically more formal in larger and well-established organizations. Formality refers to the extent that participants, responsibilities, authority, duties, and approach are specified. Smaller businesses tend to be less formal. Firms that compete in complex, rapidly changing environments, such as technology companies, tend to be more formal in strategic planning. Firms that have many divisions, products, markets and technologies also tend to be more formal in applying strategic-management concepts. Greater formality in applying the strategic-management process is usually positively related with the cost, comprehensiveness, accuracy and success of planning across all types and sizes of organizations. Diff: 2 Objective: 1.02 Describe the strategic-management process. Learning Outcome: Define strategic management and identify its basic concepts