The paper 'What is Strategic Management' is a great example of a Management Assignment. Strategic management is a term with deeper implications but let us consider it from an angle that would help us get a crux of the whole process that it involves. A person who is on the verge of setting up a small business would find this accessible. He has been passionate about it so long but then he wants his thoughts, imagination, and his dreams to take real shape. He has read a lot about small businesses and how they work.
(Richard B, 1995) But now is the time when he would have to think over, what to offer and start working straight away on a business plan. This is where he receives a hindrance and he needs to go deep further into the basics of strategic management to learn better. In order to have his business up and going successfully, he must have a plan, and with it, a strategy that helps the plan come to reality. He has to work his way through difficult steps but he must plan his steps ahead.
Those steps are full of insight, to make his dreams happen. Furthermore, this can be accomplished by proper strategic management, driven by various tools as taxonomy tables, business plans, and the like. Given below is an example of a taxonomy of approaches for measuring organizational knowledge. This concept can be used to many other variables too. (Raub, S. P. & Sthapit, B. 2001) What is Strategic Management? Strategic management is a process that specifies the objectives of an organization. It helps to develop the plans and policies for the achievement of these objectives and also arrange resources to carry the plans out.
This is at a very high level of managerial activity, in fact, at the highest level. This is not any work, rather, some managerial skills that must be exerted throughout amidst the wide array of work that goes on in an organization. The strategy of an organization must suit its core objectives, the circumstances, and the resources. This is a process of matching the strategic advantages of the company with the business environment. The objective of this strategic management is such that the organization is in a position to run its mission with efficiency and in an effective manner.
How does strategic management work? An excellent corporate strategy is that which integrates the company’ s tactics, policies, and goals into an organized and harmonious whole depending on business realities. In today’ s world, business enterprises fail, in spite of, excellent strategy because they had failed to understand the changes in their business environment. So, the strategy is a vision, it comes with a purpose towards future trends.
Strategic management is thus not only a formulation of strategy but also an implementation of the strategy, aligned with the purpose. (Robert S. Kaplan, David P. Norton) The formulation of strategy would prompt you to have an analysis of the situation at the internal and the external levels – both at the macro environment and the microenvironmental levels. It aims at setting objectives, designing vision statements (the long-term view) and mission statements (the role of the organization in the society), the financial and the strategic unit planning, and also the planning of the tactical objectives.
These are in gist, the foundation stones for strategic planning. Strategic management involves the recruitment and allocation of resources in terms of personnel, time, technological support, and financial support. There are cross-functional terms that would assign tasks or processes to groups or individuals, manage the process, and monitor the results, evaluate the process, and implement programs for the betterment of the process. While on implementation, the specific programs involve process testing, integration, documentation, and training. The formulation of strategy is a never-ending and ongoing process which requires continuous reformation and reassessment.
It is dynamic. It is concerned with a set of reactions and actions. It is interactive and emergent. An organization must not stop short from following the strategic management plan. They must follow the objectives that they have set up, keeping in mind, prosperous business. They must understand customer requirements. The competence of resources should not be overestimated, neither time requirements should be underestimated. There should be an open and healthy level of conversation between senior management and the employer. It is crucial for the management to envisage an environmental change.
This change should be dealt with with expert hands. (Collins, Brendan, and Ernest Huge. ) Very simply put, the first steps in strategic management go this way: • First, it should be defined what the business heads for, the vision statement and mission statement are to be created. • Objectives that are not abstract and that which can be measured in concrete terms can be set up. • The strategies would be designed in such a way that the objectives are achieved. • Finally, strategies are to be evaluated and corrective measures looked at if needed. It is important to understand the differences between strategic management and strategy.
The strategy is defined as a series of goals that direct the actions and decisions to match the resources and skills of an organization with occasional threats and opportunities of the environment. Strategic management is defined by him as the actions and decisions of the members of an organization who make the strategies, put them in action, modify them, change them or evaluate them as and when needed. There is a subtle difference between the two definitions.
Strategic management is a business function like all other business functions, advertising, marketing, and accounting. It involves the management of all strategies in an organization. (Goldstein, Leonard D., Timothy M. Nolan, and J. William Pfeiffer) Strategies have to be formulated at any level in the organization. There are strategies at a higher level that give rise to lower-level strategies and even lower-level strategies. We are mainly concerned with strategic management in relation to its function in the business. Strategy as a business function would involve how strategies are implemented, measured, developed.
So when you fully understand the implication of strategic management as a business function things appear to you in a brighter light. Where does the study of strategic management lead you? Students who study strategic management will not be restricted from becoming office executives, entrepreneurs, or for that matter, a big boss or the owner of a big organization. On studying strategic management, you will acquire decision-making qualities that you can put to use at all levels in an organization while on your career path. Strategic management would involve industry analysis at all levels.
(Mellum, Maria Minerva, and Casey Collett. ) A case-specific study would reveal that in a Philippine setting, getting into business would involve a lot of factors. Since the country had undergone two political uprisings the political factors are to be considered while planning strategic management for a business set up in the Philippines. Careful planning of the business would ensure success even if the economy is most volatile. This is a good instance of the internal environmental factor affecting business management. The external factors, however, would include global forces such as the socio-cultural, economic, political, and technological trends.
The middle-east war would affect the organization with a good number of Filipino workers.
1. Richard B, 1995, Principles of Strategic Management, MODULE 1: The Strategic Management Process: An Introduction, http://www.csuchico.edu/mgmt/strategy/module1/, Accessed February 01 2008
2. Raub, S. P. & Sthapit, B. (2001). Towards a Taxonomy of Approaches for Measuring Organizational Knowledge, Research and Practice in Human Resource Management, 9(1), 139-155.
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5. Goldstein, Leonard D., Timothy M. Nolan, and J. William Pfeiffer. Applied Strategic Planning: How to Develop a Plan that Really Works. New York: McGraw-Hill, Inc., 1993.
6. Mellum, Mara Minerva, and Casey Collett. Breakthrough Leadership: Achieving Organizational Alignment through Hoshin Planning. Chicago: American Hospital Publishers, Inc., 1995.
7. Frederick D. Buggie, Strategic Innovations International, http://www.strategicinnovations.com/, Accessed February 01 2008
8. Vadim Kotelnikov, Ten Major Strategic Management Schools, A Comparative Analysis, http://www.1000ventures.com/business_guide/mgmt_inex_stategy_10schools.html, Accessed February 01 2008
Title: REFLECTING ON THE STRATEGY PROCESS, By: Mintzberg Henry, Lampel, Joseph, Sloan Management Review, 0019848X, Spring99, Vol. 40, Issue 3
Database: Business Source Corporate
Title: Strategic Management
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