Strategic Management

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Recommended: Benefits and limitations of strategic planning

Every firm competing in an industry has a competitive strategy. Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its structure of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. In other words, strategy is about the direction in which the business is trying to move in the long term. A strategy should help in finding the potential markets in which the business competes and its corresponding activities. It should help in analyzing the resources needed to compete, example : skills, assets, finance, technical know-how etc. Strategies should help in Analyzing the external environmental factors that affects the ability of the business to compete. Finally it should help in analyzing the values and expectations of the stakeholders who have the power in and out of the business.

The organization's strategy must be formulated in such a way that it has a unique distinctiveness which is clearly specified. This distinctiveness must place the organization in the potential market with a strong base . The strategy developed will be successful when it fits into the company's activities and they should balance each other and they should supply the right benefits to the firm and its customers. The ultimate concept is to position the firm in a way that will ensure its survival in the long term among the competitive environment.

The various elements of strategies are strategic planning, strategic thinking and strategic management. Strategic planning is a management tool. It serves one of the main purpose as a management tool i.e., to help an organiz...

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...al and the dynamic approaches are equally important. The organizations will prove to be more successful when they apply both these strategic approaches. The organization should know where it is heading to and must also be quick enough to grab the new opportunities and welcoming changes in the competitive market to gain a competitive advantage.

BIBLIOGRAPHY :

Strategic Management - An Integrated Approach Charles W. L. Hill / Gareth R. Jones (Third and Sixth Edition )

Strategic Management - Issues and Cases Paul Dobson, Kenneth Starkey and John Richards

Competitive Strategy - Techniques for analyzing industries and competitors Michael E . Porter

WEBSITES : 1. www.findarticles.com 2. www.pim.com 3. www.tutor2u.net 4. www.whatcar.com 5. www.strategyclub.com

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