Strategic Management
Strategic Management
Introduction - “Strategic Management is the management of an organization’s overall purpose, to ensure that the needs and enablers of the present are balanced with those of the future.” (Witcher & Chau 2010, P.6) In another word, it is the overall management of strategy in order to match and obtain the future long-term purpose and objectives. The main application is to achieve and sustain competitive advantages to enable an organization to compete effectively with rivals which a strategy should be able to create value for that. Strategic management should be carried out and organized by the senior managers and executives of an organization.
Importance - It is important since it helps the whole organization’s operation consists with its overall purpose. It also guides the lower-level operations how they develop their own objectives and plans to support senior level’s strategy and provide room for everyone in the firm to report how exactly the firm is running in every detail. It improves internal operations transparency and communication which helps an organization’s consistency to obtain its overall final long-term purpose. To have an effective strategic management in a firm, there is an 11-stages process to follow known as strategic management process as shown below.
Guidelines for management – Strategic Management Process
The first and step is to have a strategic planning which is the overall planning for the process as “how senior managers sequence decision-making achieving longer-term purpose, strategic objectives and overall strategy, and the implementation process.”(Witcher & Chau 2010 P.10) Heineken, the world top Beer Company would be provided as an example for the process.
1. Strategic Purpose
Purpose is what a firm wants to obtain as a whole in long-term and strategic management is the overall management of a firm’s long-term purpose. The importance and three roles of purpose is ‘vision, values and mission’. Vision provides a
Introduction - “Strategic Management is the management of an organization’s overall purpose, to ensure that the needs and enablers of the present are balanced with those of the future.” (Witcher & Chau 2010, P.6) In another word, it is the overall management of strategy in order to match and obtain the future long-term purpose and objectives. The main application is to achieve and sustain competitive advantages to enable an organization to compete effectively with rivals which a strategy should be able to create value for that. Strategic management should be carried out and organized by the senior managers and executives of an organization.
Importance - It is important since it helps the whole organization’s operation consists with its overall purpose. It also guides the lower-level operations how they develop their own objectives and plans to support senior level’s strategy and provide room for everyone in the firm to report how exactly the firm is running in every detail. It improves internal operations transparency and communication which helps an organization’s consistency to obtain its overall final long-term purpose. To have an effective strategic management in a firm, there is an 11-stages process to follow known as strategic management process as shown below.
Guidelines for management – Strategic Management Process
The first and step is to have a strategic planning which is the overall planning for the process as “how senior managers sequence decision-making achieving longer-term purpose, strategic objectives and overall strategy, and the implementation process.”(Witcher & Chau 2010 P.10) Heineken, the world top Beer Company would be provided as an example for the process.
1. Strategic Purpose
Purpose is what a firm wants to obtain as a whole in long-term and strategic management is the overall management of a firm’s long-term purpose. The importance and three roles of purpose is ‘vision, values and mission’. Vision provides a