Advantaes and Disadvantages of Strategic Management
Introduction
Strategic Management
A set of decisions and actions that result in formulation and implementation of plans designated to achieve company’s objectives (Pearce and Robinson, 2009:3)
Strategic management involves a series of actions/ steps in which the top management analyze the current situation, decide on strategies, put them in action, evaluate and change as desired.
It is concerned with planning and implementation
Strategic management makes organizations to be proactive, rather than reactive. It needs a lot of commitment and if implemented properly, results in a number of advantages.
This process is not smooth. There are advantages and disadvantages linked to this process.
Question 1A
Advantage of Strategic Management:
Involvement ensures understanding
Before staff members can adopt any new strategy, they must first understand it. When a new strategy is introduced, people must be active participants. They must understand exactly what is expected of them and what their role is.
According to (Robin Speculand, 2009), everyone needs to answer the question” what actions should I take to participate in the new strategy.
Successful implementation needs people to be motivated.
Strategic planning and management is not for top management only. Even though planning is done by top management, everyone in the organization needs to be involved when it comes to implementation.
When Roll Royce rolled out its new strategy, it used strategy storyboards to share the new message across. These boards explained the new strategy and what the staff members was expected to do differently.
75 managers were trained to conduct the briefing and hold at least 4000 presentations around the world. After this effort, staff members were able to understand the strategy and knew exactly what to do to help implement it.
According to (Pearce and Robinson, 2009)” the involvement of employees in strategy formulation improves their understanding of
Strategic Management
A set of decisions and actions that result in formulation and implementation of plans designated to achieve company’s objectives (Pearce and Robinson, 2009:3)
Strategic management involves a series of actions/ steps in which the top management analyze the current situation, decide on strategies, put them in action, evaluate and change as desired.
It is concerned with planning and implementation
Strategic management makes organizations to be proactive, rather than reactive. It needs a lot of commitment and if implemented properly, results in a number of advantages.
This process is not smooth. There are advantages and disadvantages linked to this process.
Question 1A
Advantage of Strategic Management:
Involvement ensures understanding
Before staff members can adopt any new strategy, they must first understand it. When a new strategy is introduced, people must be active participants. They must understand exactly what is expected of them and what their role is.
According to (Robin Speculand, 2009), everyone needs to answer the question” what actions should I take to participate in the new strategy.
Successful implementation needs people to be motivated.
Strategic planning and management is not for top management only. Even though planning is done by top management, everyone in the organization needs to be involved when it comes to implementation.
When Roll Royce rolled out its new strategy, it used strategy storyboards to share the new message across. These boards explained the new strategy and what the staff members was expected to do differently.
75 managers were trained to conduct the briefing and hold at least 4000 presentations around the world. After this effort, staff members were able to understand the strategy and knew exactly what to do to help implement it.
According to (Pearce and Robinson, 2009)” the involvement of employees in strategy formulation improves their understanding of
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