Strategy can be defined as the plans that businesses lay out to achieve their objectives (Sandberg, 1992). The plans that businesses set up in order to position themselves to make maximum profit include their mission, vision, goals, objectives, strategy, implementation and execution (Sandberg, 1992). For the previously mentioned plans to be successful good strategic management has to be in place. Good strategic management can be organized into three levels: corporate, business and operational levels (Ritson, 2013). The levels of strategic management can be formulated through several schools of thought. The schools of thought include the planning school, positioning school and the resource based school. The planning school of thought is a formulation that strives to make a fit between the strategy that a business has and the environment in which it is operating in (Ritson, 2013). Credit for the planning school goes to Igor Ansoff and K. Andrews (Flevy, August 2013; Ritson, 2013). The planning school is centered on a formal process that takes a rigorous approach focusing on detailed and inflexible planning (Sandberg, 1992). The planning school’s contribution to businesses is based on the ability to give clear directions and ensure resource allocation (Flevy, August 2013) . The planning school of thought is ideal for organizations that operate under tight control. Business models that use the planning school include: Scenario planning, Parenting style, Levers of control and the Theory of Mechanistic and Organic systems. The planning school of thought has limitations. There is a tendency for groupthink and can become too static. Prediction is difficult and as such it is not suitable for an unpredictable market. The ... ... middle of paper ... ...ning school places the business in the context of its industry and how it can improve its position within the industry. The resource-based school focuses on the internal resources available to the organization. It is important to understand different formulations in order to pick the perfect fit. Resources Flevy. (August 2013). Ten Schools of Thoughton Strategic Management. Retrieved February 1, 2014, from http://www.slideshare.net/flevydocs/ten-schools-of-thought-on-strategic-management Mission Statements. (2014). Retrieved January 31, 2014, from http://www.missionstatements.com/hospital_mission_statements.html Ritson, Neil. (2013). Strategic Management. In Bookboon (Series Ed.) Sandberg, William R. (1992, 1992 Spring). Strategic management's potential contributions to a theory of entrepreneurship. Entrepreneurship: Theory and Practice, 16, 73+.
2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications.
Wheelen, Thomas L. and J. David Hunger. Strategic Management and Business Policy, 13th Ed. Upper Saddle River, NJ: Pearson Education, Inc., 2012. Print.
As per Henry Mintzberg, former president of the Strategic Management Society, “strategy cannot be planned because planning is about analysis and strategy is about synthesis. Strategic planning involves a structure or framework, a set of procedures both formal and informal, and of course content. Beyond these basic elements, the underlying assumptions about strategic planning are that the future can be anticipated, forecasted, managed or even controlled, and that the best way to do so is to have a formal and integrated plan about it in place. The process of planning itself may turn out to be more important than the results, and that process requires both analysis and synthesis. Planning simply introduces a formal “discipline” for conducting long-term thinking about an institution, and for recognizing opportunities in and for minimizing risks from the external and internal environments.
Wheelen, Thomas L. and J. David Hunger. Strategic Management and Business Policy, 13th Ed. Upper Saddle River, NJ: Pearson Education, Inc., 2012. Print.
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
Wheelen, T.L., & Hunger J.D. (2008) Strategic management and business policy. Upper Saddle River, NJ: Pearson-Prentice Hall.
Additionally, a concept referred to as strategic management is a new way to implement an organization’s strategic plan. According to Crosby (1991), it is possible to develop a strategic plan without giving much thought to the actual management of that plan. However, Crosby (1991) conveyed that it is probably impossible to manage an organization strategically without having developed a strategic plan. Engaging staff in these processes and phases is very important to the success of the plan.
Hitt, M., Ireland, R. & Hoskisson, R. (2010).Strategic Management: Competitive and Globalization, Concept and Cases. Mason, Ohio: Cengage Learning
"Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations" (Johnson and Scholes, 2010)
Strategy is the pattern of decisions determining the organization’s objectives, purposes, or goals. It outlines the principal policies and plans for achieving those goals, and clearly defines the range of businesses the organization has to pursue. Strategy as a pattern of decisions also highlights the nature of human and economic organization it intends to be, and the nature of the economic and noneconomic contribution it intends to make towards its stakeholders, mainly, the shareholders, customers, employees, and communities[1].
A strategic planning is a backbone for support the process strategic management. It is also main process in handling the strategic management. Various definition about strategy but generally involves setting the goals and others. Any organization must look at to strategy planning for achieve their vision, mission, values and core strategy. In today, an organization must face many challenges for success in their goals and objectives. They must think carefully for making decision if they want high effectively in the organization. The strategic planner always thinks outside the box for make their organization become success. This strategic planning process affected the effectiveness of organizational. Thompson and Strickland (1989) add that galvanizing
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: planning for domestic & global competition (13th ed.). New York: McGraw-Hill/Irwin.
"The strategy formulation can develop competitive advantage only to the extent that the process can give meaning to workers in the trenches." —David Hurst (David, 2011). Strategic management can be defined as the art and science of formulation, implementation, and evaluation of cross-functional decisions that enables an organization to achieve its objectives. So, strategic management focuses on integration management, marketing, finance, operations, R&D and information systems to achieve organizational accomplishment. Strategic management is all about gaining and maintaining competitive advantages. When an organization can do something that rival cannot do, or owns something which competitor desire, that is referred as competitive advantage.
Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitive and Globalization, Concepts and Cases. In M.Staudt & Stranz (Ed).
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).