nature of strategic management
The Nature of Strategic Management
Learning Outcomes
After studying this unit, you should be able to do the following:
Describe the strategic management process
Explain the need for integrating analysis and intuition in strategic management
Define and give examples of key terms in strategic management
State the nature of strategy formulation, implementation and evaluation activities
Describe the benefits of good business in strategic management
Explain the advantages and Disadvantages of entering global markets
What is Strategic Management?
Once there were two company presidents who competed in the same industry. These two presidents decided to go on a camping trip to discuss a possible merger. They hiked deep into the woods. Suddenly, they came upon a grizzly bear that rose up on its hind legs and snarled. Instantly, the first president took off his knapsack and got out a pair of jogging shoes. The second president said, “Hey, you can’t outrun that bear.” The first president responded, “Maybe I can’t outrun that bear, but I surely can outrun you!” This story captures the notion of strategic management, which is to achieve and maintain competitive advantage.
Defining Strategic Management
Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable and organisation to achieve its objectives. As this definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success. Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation. The purpose of strategic management is to exploit and create new and different opportunities for tomorrow; long-range planning, in contrast, tries to optimize for
Learning Outcomes
After studying this unit, you should be able to do the following:
Describe the strategic management process
Explain the need for integrating analysis and intuition in strategic management
Define and give examples of key terms in strategic management
State the nature of strategy formulation, implementation and evaluation activities
Describe the benefits of good business in strategic management
Explain the advantages and Disadvantages of entering global markets
What is Strategic Management?
Once there were two company presidents who competed in the same industry. These two presidents decided to go on a camping trip to discuss a possible merger. They hiked deep into the woods. Suddenly, they came upon a grizzly bear that rose up on its hind legs and snarled. Instantly, the first president took off his knapsack and got out a pair of jogging shoes. The second president said, “Hey, you can’t outrun that bear.” The first president responded, “Maybe I can’t outrun that bear, but I surely can outrun you!” This story captures the notion of strategic management, which is to achieve and maintain competitive advantage.
Defining Strategic Management
Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable and organisation to achieve its objectives. As this definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success. Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation. The purpose of strategic management is to exploit and create new and different opportunities for tomorrow; long-range planning, in contrast, tries to optimize for