Strategic Management
Introduction
To deal effectively with the wide array of factors affecting the ability of a business to grow and prosper, managers need advanced processes they feel will facilitate the optimal positioning of the business in its competitive environment. Such positioning is possible with strategic management because this process improves preparedness for unexpected internal or competitive demands.
Therefore, strategic management is an all-encompassing approach for formulating, implementing and evaluating managerial decisions in a way that permits the business to reach its objectives.
For a strategic management plan to be successful, however, every manager should:
• Clearly see the need for change
• Be firmly committed to the idea of changing the business planning process
• Assure that the strategic management process has credibility with everyone involved
• Make sure that final plans are realistic and reflect actual resources and capabilities
• Train all participants in the procedures essential to the strategic management process
• Develop concise and well-organized plans
One of the world’s best performing natural resources companies created a unique organizational structure that combines the advantages of small business units with “virtual structures” - groupings of these business units - that can address different strategic issues and competitive environments.
Overview
The formality of the strategic management process varies widely. Formality refers to the degree to which membership, responsibilities, authority and discretion in decision making are specified. It is an important consideration in the study and application of strategic management because the degree of formality is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning. The requirements for small business indicate the need for a moderate degree of formality. This is consistent with the ability to communicate face-to-face (size) and the need for flexibility (changing demands). The important issue is involvement with the process, not generating reams of paperwork (Camerer, 195-219).
Resistance to change should be reduced. Businesses vary in the processes they use to formulate and direct their strategic management activities. Many using sophisticated planning techniques have developed more detai...
... middle of paper ...
...heir management of their organizations, due to their important role in the culture formation and preservation process. They need to be continually aware of the cultural values espoused through their behavior and actions.
References
Astley, W.G., and C.J. Fombrun, 1983, Collective Strategy: Social Ecology of Organizational Environments. Academy of Management Review 8: pp. 576-587
Burgelman, R.A. 1996, A Process Model of Strategic Business Exit: Implications for an Evolutionary Perspective on Strategy. Strategic Management Journal 17: pp. 193-214
Camerer, Colin F. 1994, Does Strategy Research Need Game Theory? In Fundamental Issues in Strategy: A Research Agenda. Richard P. Rumelt, Dan E. Schendel, and David J. Teece (eds.). Pp. 195-219. Boston: Harvard Business School Press
Galbraith, Jay R. 1995, Designing Organizations: An Executive Briefing on Strategy, Structure and Process, San Francisco: Jossey-Bass Publishers pp. 12-15
Harrison, Jeffrey S., and Caron H. St. John, 1998, Strategic Management of Organizations and Stakeholders: Concepts. 2nd Edition. Cincinnati, OH: South-Western College Publishing, pp. 44-59
2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications.
Thompson, A. A, Jr., & Strickland, A. J. III (2003). Strategic management: Concepts and cases (13th ed.). New York: Irwin/McGraw.
Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
Pearce II, J. A., & Robinson, R. B. (2011). Strategic Management 12th Ed. New York: McGraw-Hill/Irwin.
Wheelen T.L., Hunger J.D., Strategic Management and Business Policy Prentice Hall, Upper Saddle River, NJ (2004)
Strategic management has many purposes like designing a formal system of strategic management the role of strategic planning within the strategic management. ...
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
Johnson, G., Scholes, K. and Whittington, R., 2006. Exploring Corporate Strategy. 7th Ed. London: Prentice-Hall.
The strategic management process implies sequential and interrelated activities, situation analysis (scanning and evaluating the current organizational content and internal environments), strategy formulation (developing and then choosing appropriate strategies), strategy implementation (putting strategies into action), and strategy evaluation (evaluating the implementation and outcome of strategies), leading to some outcome. These interrelated activities result in a set of strategies the organization uses in doing business. To manage strategically means to analyze the current situation, develop appropriate strategies, putting those strategies into action and then evaluating and changing those strategies as needed. The three main types of
CLEGG, S., CARTER, C., KORNBERGER, M. & SCHWEITZER, J. 2011. Strategy: Theory and Practice, London, SAGE Publications Ltd.
Strategic management is a method of mounting and implements several competitive actions to improve the success of a company or organization in the present and in the future. These competitive actions must be derived from the customer’s demand in the external environment and in the same manner in the internal capabilities of the company to develop important decisions. The decisions made by the company must be followed by a analysis of the current business situations to ensures the best decision possible.
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).
The steps followed by a company in order to achieve the desired position is the layman understanding of Strategic Management. Strickland and Thompson (2003, p.6) identify Strategic Management as the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing & executing the strategy, and then
Wheelen, T. L., & Hunger, J. D. (2012). Strategic Management and Business Policy. Prentice Hall.
Strategic management is the “identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them” (Business Dictionary, 2016). In order for industries and organizations to thrive, they must have strategies in place and strategic management processes to stay competitive, profitable, attractive to stakeholders, and to sustain advantages that set them apart from other competitors (Barney & Hesterly, 2015). The strategic management process involves a set of procedures that lead to choosing a strategy that will eventually lead to competitive advantage (Barney & Hesterly, 2015). The six steps of the strategic management process involves defining