Startegic Management
Strategic management
I. Introduction
Strategic management has become very popular and important to business because it is critical to the development and expansion of an organization. However, the definition of strategic management ranges widely. Some refer to the performance or success of the overall organization, some indicate to implement strategy, some focus on external environments, and some refer to none of these (Nag, Hambrick & Chen, 2007). Basically, strategic management in firms is the characteristic ways in which managers attempt to make an ongoing process of formulating and implementing actions and decisions to provide a competitively superior fit between an organization and its environment so as to reach their goals (Chaneta, 2011; Macky, 2008).
In terms of the definition, it does clearly to know the essence of good and effective strategic decision-making can build a firm’s position stronger and flexible enough to achieve the long-run performance. That’s why all research thinks decision- making is a particular important part in the firm’s situation for managers, even though they focus on different areas (Berziņš, 2012; Chaneta, 2011; Nag et al., 2007; Osuagwu, 2009). Therefore, understanding the process of making strategic management, from both internal and external perspectives, can help organizations achieve and maintain competitive advantage.
II. Making strategic management process
When making decisions about strategies, the firm must engage in the strategic management process, which analyzes the objectives and assesses both internal and external situations to formulate and implement the strategy, evaluate the progress, and make adjustments much more directional and successful (The strategic planning process, n.d., para.1). Most resources follow the following six main steps, as can be seen in Figure 1. However, the mutual interaction of various levels creates a little difference in the process of strategic management. For
I. Introduction
Strategic management has become very popular and important to business because it is critical to the development and expansion of an organization. However, the definition of strategic management ranges widely. Some refer to the performance or success of the overall organization, some indicate to implement strategy, some focus on external environments, and some refer to none of these (Nag, Hambrick & Chen, 2007). Basically, strategic management in firms is the characteristic ways in which managers attempt to make an ongoing process of formulating and implementing actions and decisions to provide a competitively superior fit between an organization and its environment so as to reach their goals (Chaneta, 2011; Macky, 2008).
In terms of the definition, it does clearly to know the essence of good and effective strategic decision-making can build a firm’s position stronger and flexible enough to achieve the long-run performance. That’s why all research thinks decision- making is a particular important part in the firm’s situation for managers, even though they focus on different areas (Berziņš, 2012; Chaneta, 2011; Nag et al., 2007; Osuagwu, 2009). Therefore, understanding the process of making strategic management, from both internal and external perspectives, can help organizations achieve and maintain competitive advantage.
II. Making strategic management process
When making decisions about strategies, the firm must engage in the strategic management process, which analyzes the objectives and assesses both internal and external situations to formulate and implement the strategy, evaluate the progress, and make adjustments much more directional and successful (The strategic planning process, n.d., para.1). Most resources follow the following six main steps, as can be seen in Figure 1. However, the mutual interaction of various levels creates a little difference in the process of strategic management. For