The paper "Essentials of Strategic Management for the Achievement of Organisational Strategic Success" is an outstanding example of management coursework. Strategic management is the process by which organisational management teams analyze both the internal and external environments for the purpose of coming up with strategies and formula of allocating resources to achieve competitive advantage. The concept of competitive advantage is a key foundation for a firm that aims to achieve strategic success and the firm’ s goal. In the context of strategic success, the concept of strategic management entails an understanding of the organization strategic position.
The understanding strategic position enables organizations to make strategic choices for the organisation’ s future management strategy. According to Wallace Stettinius (2005), strategic management is basically a strategic process which involves the formulation of strategic vision, objective setting, strategy formulation, implementation and execution (Wallace 2005). To ensure that strategic success is achieved, strategic management of an organisation should be a continuous process with the focus on the efficient utilization of both internal and external resources for the achievement of competitive advantage. An organisation which has achieved competitive advantage has differentiated itself from its competitors in terms of competencies, knowledge and strategic skills.
Organizations with the best integration of organizational strategy, competitive advantage through suitable strategic management tend to achieve strategic success in the long-term. This involves appropriate mobilization of organisational skills, knowledge, competencies and resources taking into account the present organizational positioning thus building sustainable competitive advantages. The key strategic management areas are mainly integrated into the organisational analysis, formulation of strategies, execution and implementation for the purpose of achieving competitive advantage in the industry. Strategic Management Areas The notable key areas of strategic management comprise of four elements which include strategy formulation, environmental scanning, implementation of the strategy, evaluation and control.
Mats Alvesson (2003) argue that the core virtue underlying strategic success involves the scanning of the organisation external environment aiming to identify opportunities and threats (Mats Alvesson 2003). On the other hand, internal environmental scan seeks to identify the strengths and weaknesses. Therefore, it can be argued that strategic factors holding the organisational future are the strengths, weaknesses, opportunities and threats. Strategy formulation This area of strategic management refers to the development of organisational long-term plans for the effective management of its environmental opportunities and threats’ taking into account it’ s corporate weaknesses and strengths.
An organization can achieve this through the proper definition of its mission, achievable objectives, strategy development and setting of proper policy guidelines (Mats Alvesson 2003). The mission of an organization is the purpose for organisation existence and it states the fundamentals and unique purposes that differentiate it with other organizations in the industry. The objectives state what the organisation seeks to accomplish within a certain time frame and it fulfills the organization mission.
A strategy provides a plan on how an organisation achieves its objectives and mission. Strategic success is achieved when the organisational strategy maximizes a competitive advantage while minimizing competitive disadvantage (Wallace Stettinius 2005). A typical organization should have a functional, business and corporate strategy. Policies provide the organisation scope for decision making in regard to strategy formulation and implementation. Strategic decision making entails long-run future of an organisation and they are typically and unusual have a precedent. Directive-strategic decisions provide a guideline for lesser decisions, consequential-strategic decisions facilitate the commitment of substantial demand and resources on organizational commitment.
Organization strategic decision making is usually planned, entrepreneurial and adaptive. Hrebiniak (2013) provides that strategic planning entails the basic aspects of strategic management processes; this is argued to being the most rational way of making strategic decisions. Strategic decision-making involves current evaluation of organisation performance, reviewing corporate governance, scanning of the external environment, analysis of strategic factors, selecting the best alternative strategy, implementing the selected strategies and evaluating the implemented strategies (Hrebiniak 2013, p. 45).
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