Chapter One- Strategic Management Strategic Management Comprises of Two Words Strategy and Management. Simply Put, Strategy Is a Company's Game Plan. Strategy Can Be Defined as Large-Scale, Future-Oriented Plans for
CHAPTER ONE- STRATEGIC MANAGEMENT
Strategic management comprises of two words strategy and Management. Simply put, Strategy is a company’s game plan. Strategy can be defined as large-scale, future-oriented plans for inter-acting with the competitive environment to achieve company objectives while management is defined as the act of getting activities completed efficiently and effectively with and through other peoples.
Strategic Management can therefore be defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. This process therefore comprises of three critical tasks and they are as follows:
* Design the company’s mission, vision, purpose, philosophy and goals. * Conduct an analysis that reflects the company’s internal conditions and capabilities. * Comparison of the company’s resources with the external environment. * Identification of the most desirable options by evaluating each point in light of the company’s mission. * Choose a set of long-term objectives and strategies that will achieve the most desired options. * Develop annual objectives and short-term strategies that are relevant to the selected set of long term objectives and strategies * Implementation of these chosen strategies with the allocations budgeted not forgetting the emphasis of tasks, people, structure, technology and rewards systems. * Evaluation of the success of the strategic process a s an input and reference for future use in decision making process.
Looking at these nine tasks, strategic management involves: Planning, Organizing, Directing, Communicating and Controlling of a company’s strategy-related decisions and actions.
LEVELS OF STRATEGY
In a firm, the decision-making hierarchy comprises of three levels:
The Corporate Level: This is the level that tops the hierarchy of a firm. It is principally composed of the board of directors, chief executives and
Strategic management comprises of two words strategy and Management. Simply put, Strategy is a company’s game plan. Strategy can be defined as large-scale, future-oriented plans for inter-acting with the competitive environment to achieve company objectives while management is defined as the act of getting activities completed efficiently and effectively with and through other peoples.
Strategic Management can therefore be defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. This process therefore comprises of three critical tasks and they are as follows:
* Design the company’s mission, vision, purpose, philosophy and goals. * Conduct an analysis that reflects the company’s internal conditions and capabilities. * Comparison of the company’s resources with the external environment. * Identification of the most desirable options by evaluating each point in light of the company’s mission. * Choose a set of long-term objectives and strategies that will achieve the most desired options. * Develop annual objectives and short-term strategies that are relevant to the selected set of long term objectives and strategies * Implementation of these chosen strategies with the allocations budgeted not forgetting the emphasis of tasks, people, structure, technology and rewards systems. * Evaluation of the success of the strategic process a s an input and reference for future use in decision making process.
Looking at these nine tasks, strategic management involves: Planning, Organizing, Directing, Communicating and Controlling of a company’s strategy-related decisions and actions.
LEVELS OF STRATEGY
In a firm, the decision-making hierarchy comprises of three levels:
The Corporate Level: This is the level that tops the hierarchy of a firm. It is principally composed of the board of directors, chief executives and