Strategic management
Strategic management
Definition of strategic management
Strategic management is defines as the set of decision and action resulting in formulation and implementation of strategies designed to achieve the objective of an organization.
It involves attention to following nine critical areas:
1. Determining the mission of the company, including broad statement about its purpose, philosophy and goals.
2. Developing a company profile that reflects internal condition of both capabilities.
3. Assessment of the company’s external environment, in term of both competitive and general contextual factors.
4. Analysis of possible options uncovered in the matching of the company profile with the external environment.
5. Identifying the desired option uncovered when possibilities are considered in light of the company mission.
6. Strategic choice of a particular set of long-term objectives and grand strategies needed to achieve the desired options.
7. Development of annual objective set of long-term objectives and grand strategies needed to achieve the desired options.
8. Implementing strategic choice decision based on budgeted resource allocation and emphasizing the matching of tasks, people, structures, technologies and reward systems.
9. Review and evaluation of the success of strategic process to serve as a basis for control and as an input for future decision making.
In the first part of this chapter, the focus will be on long-term objectives. These are statements of this chapter, the results a business seeks to achieve over a specified period of time, typically five years. In the second part of the chapter, focus will sift to formulation of grand strategies. These provide a comprehensive general approach guiding major actions designed to accomplish long-term business objectives.
Long term objective
To achieve long-term prosperity, strategic planners commonly established long-term objective in seven areas:
1. Profitability
2. Productivity
3. Competitive
Definition of strategic management
Strategic management is defines as the set of decision and action resulting in formulation and implementation of strategies designed to achieve the objective of an organization.
It involves attention to following nine critical areas:
1. Determining the mission of the company, including broad statement about its purpose, philosophy and goals.
2. Developing a company profile that reflects internal condition of both capabilities.
3. Assessment of the company’s external environment, in term of both competitive and general contextual factors.
4. Analysis of possible options uncovered in the matching of the company profile with the external environment.
5. Identifying the desired option uncovered when possibilities are considered in light of the company mission.
6. Strategic choice of a particular set of long-term objectives and grand strategies needed to achieve the desired options.
7. Development of annual objective set of long-term objectives and grand strategies needed to achieve the desired options.
8. Implementing strategic choice decision based on budgeted resource allocation and emphasizing the matching of tasks, people, structures, technologies and reward systems.
9. Review and evaluation of the success of strategic process to serve as a basis for control and as an input for future decision making.
In the first part of this chapter, the focus will be on long-term objectives. These are statements of this chapter, the results a business seeks to achieve over a specified period of time, typically five years. In the second part of the chapter, focus will sift to formulation of grand strategies. These provide a comprehensive general approach guiding major actions designed to accomplish long-term business objectives.
Long term objective
To achieve long-term prosperity, strategic planners commonly established long-term objective in seven areas:
1. Profitability
2. Productivity
3. Competitive