- Strategic management is involve in utilization or planned allocation of resources
to implement major initiatives taken by executives on behalf of stakeholders to
improve performance of firms in an environment. Formal tools exist. But formal
tools are not enough; creativity is just as important to strategic management.
Mastering strategy is therefore part art and part science.
- Strategic management is the process of setting goals, analyzing the competitive
environment, and making decisions to achieve long-term business success. It
involves planning, implementing, and evaluating strategies to ensure an
organization remains competitive and adaptable to changing market conditions.
- Yes, I have, just like the definition my strategy it has a broad goal and it is a long
term by nature. By assessing and reacting to external and competitive forces and
to maximize my own performance. By Identifying my capabilities, I attempt to
deploy through strategies that will give me an competitive advantage
- Starbucks, because they emphasizes low integration and high responsiveness by
tailoring their products, marketing campaigns, store designs and operations to suit
the unique preferences and customs of each local market.
- Most organizations create intended strategies that they hope to follow to be
successful. Overtime, however, changes in an organization’s situation give rise to
new opportunities and challenges. Organizations respond to these changes using
emergent strategies. Realized strategies are a product of both intended and
realized strategies.
- Although strategic management as a field of study has developed mostly over
the last century, the concept of strategy is much older. Understanding strategic
management can benefit greatly by learning the lessons that ancient history and
military strategy provide.
- Strategic management is a process that requires the ability to manage change.
Consequently, executives must be careful to monitor and to interpret the events in
their environment, to take appropriate actions when change is needed, and to
monitor their performance to ensure that their firms are able to survive and, it is
hoped, thrive over time.
- Strategic leaders need to ensure that their organizations have four types of
aims. A vision states what the organization aspires to become in the future. A
mission reflects the organization’s past and present by stating why the
organization exists and what role it plays in society. Goals are the more specific
aims that organizations pursue to reach their visions and missions. The best goals
are SMART: specific, measurable, attainable, realistic, and time-bound. Corporate
values are key principles that a company endorses and lives by.
-Benchmarking = Organizational performance is a multidimensional concept, and
wise managers rely on multiple measures of performance when gauging the
success or failure of their organizations. The balanced scorecard provides a tool to
help executives gain a general understanding of their organization’s current level
of achievement across a set of four important dimensions. The triple bottom line
provides another tool to help executives focus on performance targets beyond
profits alone. This approach stresses the importance of social (people) and
environmental (planet) outcomes, as well as profit.
-Evaluation of External Environment = An organization’s environment is a major
consideration in strategic assessment. The environment is the source of resources
that the organization needs. It provides opportunities and threats, and it
influences the various strategic decisions that executives must make.
- PESTEL is a framework that reflects general environmental factors—political,
economic, sociocultural, technological, environmental, and legal—that can impact
an organization either
positively or negatively. In many cases, executives can prevent negative outcomes
and leverage
positive forces by performing a PESTEL analysis to diagnose where in the general
environment
important opportunities and threats arise.
- // “How much profit potential exists in our industry?” is a key question for
executives. Five Forces Analysis provides an answer to this question. It does this
by considering the interactions among the competitors in an industry, potential
new entrants to the industry, substitutes for the
industry’s offerings, suppliers to the industry, and the industry’s buyers.