Strategic
STRATEGIC MANAGEMENT COURSE NOTES
Pearce II and Robinson Jr (1997) define strategic management as “the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives”.
Critical tasks:
Formulate the company’s mission including broad statements about its purpose, philosophy and goals
Develop a company profile that reflects its internal conditions and capabilities
Assess the company’s external environment, including both the competitive and general contextual factors
Analyze the company’s options by matching its resources with the external environment
Identify the most desirable options by evaluating each option in the light of the company’s mission
Select a set of long-term objectives and grand strategies that will achieve the most desirable options
Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies
Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies, and reward systems is emphasized
Evaluate the success of the strategic process as an input for future decision making
Thompson and Strickland (1998) say strategic management consists of five interrelated tasks:
Forming a strategic vision of what the company’s future make up will be and where the company is headed – so as to provide long term direction, delineate what kind enterprise the company is trying to become and infuse the organization with a sense of purposeful action
Setting objectives – converting the strategic vision into specific performance outcomes for the organization to achieve
Crafting a strategy to achieve the desired outcomes/results
Implementing and executing the chosen strategy effectively and efficiently
Evaluating performance and initiating corrective adjustments to/in vision, long term direction, objectives, strategy, or implementation
Pearce II and Robinson Jr (1997) define strategic management as “the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives”.
Critical tasks:
Formulate the company’s mission including broad statements about its purpose, philosophy and goals
Develop a company profile that reflects its internal conditions and capabilities
Assess the company’s external environment, including both the competitive and general contextual factors
Analyze the company’s options by matching its resources with the external environment
Identify the most desirable options by evaluating each option in the light of the company’s mission
Select a set of long-term objectives and grand strategies that will achieve the most desirable options
Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies
Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies, and reward systems is emphasized
Evaluate the success of the strategic process as an input for future decision making
Thompson and Strickland (1998) say strategic management consists of five interrelated tasks:
Forming a strategic vision of what the company’s future make up will be and where the company is headed – so as to provide long term direction, delineate what kind enterprise the company is trying to become and infuse the organization with a sense of purposeful action
Setting objectives – converting the strategic vision into specific performance outcomes for the organization to achieve
Crafting a strategy to achieve the desired outcomes/results
Implementing and executing the chosen strategy effectively and efficiently
Evaluating performance and initiating corrective adjustments to/in vision, long term direction, objectives, strategy, or implementation