Introduction
Strategy is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.
The strategy is a result of strategic management which is a set of managerial decisions and actions that determines the long-run performance of a corporation. Strategic management includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Moreover, evaluation and control is involved in every stage of strategic planning and management. (Wheelen & Hunger, 2012)
Figure: Basic Elements of the Strategic Management Process
Strategic management has become very popular and important to business for a variety of reasons. Strategic management considered to be the pathway to success. it shows the corporation currently situation and it’s future destination. Through strategic management the goals of the business are set.
When strategy is formulated and implemented the decisions of the strategic management team must set realistic goals. They need to consider the current market and the direction that the market is navigating towards, the competitors of the business, as well as the resources afforded to the business. Strategic management spends a lot of time and resources balancing the objectives of the organization, the stockholders, and the desires of the consumer.
But Strategic Management doesn’t always lead the corporation to the success stage. The primary factor of strategy success centralized on execution. According to researches nine out ten implementations fail around the world. But why do so many organizations fail at strategy implementation?
Most of the times, the strategy isn’t the real problem but the real issue...
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The Strategic management is help to accomplish the goals and intention for organizations recourses and future plans by following the important elements, which are planning, controlling, analyzing by study both internal and external strengths and weaknesses.
Strategic management is a broad concept means “the responsible integration of strategic planning and implementation across an organization in an ongoing way to enhance the fulfillment of mission, meeting of mandates, continuous learning, and sustained creation of public value.” which all need implementation. (Bryson, 25) Strategic management system also called performance management system or result management system. “Many organizations now are building and maintaining an organization-wide strategic management system as a way of fostering greater rationality, coherence, and cost-effectiveness in their strategies and operations.” (Bryson, 319)
According to Wheelen & Hunger, strategic management “is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2004, p2). All eleven good to great companies are benefit from strategic management and gain long term strategic advantage then lead to outperforming compared companies.
“Strategic management analyses the major initiatives taken by a company’s top management on behalf of owners, involving resources and performance in internal and external environments”. There are many well known strategists for strategic management.
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
What is Strategic management? Strategic management can be used to determine mission, vision, values, goals, objectives, roles and responsibilities, timelines, etc.
Strategic management refers to the management of company’s resources for achieving its objectives and goals. It is the preparation and application of the major goals and initiatives that are taken by the top management of the company on behalf of CEO. It includes assessment and evaluation of resources before making a final decision. It involves setting goals, analysis of competitive environment, assessing strategies, and ensures their alignment with company's goals. In Nike, the strategic management is strong and the company uses all resources so that it can achieve its goals effectively.
Strategic management is the process of formulating and implementing strategies in organizations. Strategy formulation is the first strategy in strategic management, which is the process of creating strategy and that involves assessing existing strategies, develop new strategies and strategic plans. The second strategy in strategic management is called strategy implementation, which is the process of allocation resources and putting strategies into action.
The strategic management of an organisation is one of the key responsibilities of managers in any organisation and is critical in ensuring its employees understand the purpose of the organisation, the specific objectives set to achieve that purpose and the values that members of the organisation adhere to. (Jones & Hill, 2010)
The current business environment is very competitive. Only those companies that will employee efficient strategies will achieve success. Strategic management helps an entity to utilize its resources effectively achieve a cost advantage. A cost advantage plays a key role in ensuring that a company offers competitive product prices in the market. Basis of management comes from earlier thinking and books on strategy that date back to thousands of years ago (Ambrosini and Bowman, 2009). Strategic management refers to a continuous process of analysis, creation and monitoring strategic progress of an entity to ensure sustainability (Helmstetter, Cleveland, Evans and Galloway, 2002). Organizations formulate strategies in order to focus their energy to one direction to achieve superior performance. Ambrosini and Bowman (2009) indicate that strategic management and strategic planning mean the same thing except that the term strategic management is used in academic while strategic planning is used in the industry. According Hopkins, Mallette and Hopkins (2013, strategic management is essential in sustaining competitive advantage. Organizations need to sustain their competitive advantage in order to be ahead of their competitors. According to Ambrosini and Bowman (2009), companies which have competitive advantages, perform better financially than other companies in the industry, and they also perform better than the industry average. Strategic management is also important in viewing the organization as a whole.
Fifty years later, the term strategy evolved. The term was derived from the Greek word strategies meaning "art of the general". Prior to 1950’s, the various functions of management were separate with little overall coordination or strategy. After the World War II the idea emerged that strategic planning and implementation form a separate management process, which is now known as “Strategic management”. This wide ranging approach to developing strategy evolved over time (Rao, 2008).
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
Strategy is a means of approach to facing one or many situations and having one or more goals of an individual or groups (organisations and businesses) on the path to being achieved whether successful or not (It is hoped that the goals of the business are successful when a strategic plan is implemented though). This is an essay that will discuss what strategy is for businesses or organisation, what can be achieved with strategic planning, some examples of some successful goals when strategies are used and unsuccessful goals. This will lead on to analysing why it is so challenging for organisations to have one or more strategies that lead to success in obtaining
What I benefit from this course strategy management class is knowing. The strategic management is consisting of the analysis, decisions, and actions an organization undertakes to create and sustain competitive advantages. strategic management analyses. concern with overall objectives, involves multiple stakeholders, incorporates short and long term perspectives, recognizes tradeoffs between effectiveness and efficiency. The strategic management analysis, formulation, and implementation the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.
Strategic management is the process where organization managers reach the goals and aspirations of the organization on behalf of its owners. This is done through formulation and implementation of ways and methods to fulfill the organizational goals and objectives (Brian, 2011). This is done with in-depth consideration of both the internal and external environments that the organization operates in, in order to allow the organization make the right decisions. Strategic management is an important element that firms must put together through strategic thinking as well as strategic planning (Nag, R., Hambrick & Chen, 2007).