Strategic Management
Strategic Management
is the on-going planning, monitoring, analysis, and assessment of all
necessities an organization needs to meet its goals and objectives.
The strategic management process helps organizations take stock of their
present situation, chalk out strategies, deploy them and analyse the
effectiveness of the implemented management strategies.
Strategic Management Concepts
Strategic management
is based around an organization's clear understanding of its mission; its vision for where it wants to be in the
future; and the values that will guide its actions. The process requires a
commitment to strategic planning, a
subset of business management that involves an organization's ability to set
both short and long-term goals. Strategic planning also includes the planning
of strategic decisions, activities and resource
allocation needed to achieve those goals.
Five Stages of Strategic Management
Process
There are many
schools of thought on how to do strategic management, and academics and
managers have developed numerous frameworks to guide the strategic management
process. In general, the process typically includes five phases:
1. Assessing the organization's current
strategic direction
2. Identifying and analyzing internal
and external strengths and weaknesses
3. Formulating action plans
4. Executing action plans
5. Evaluating to what degree action
plans have been successful and making changes when desired results are not
being produced.
Types of strategic management
strategies
1. Plan: Strategy
as a consciously intended course of action to deal with a situation.
2. Ploy: Strategy
as a manoeuvre to outwit a competitor, which can also be part of a plan.
3. Pattern:
Strategy stemming from consistency in behaviour, whether intended or not and
which can be independent of a plan.
4. Position:
Strategy as a mediating force or match between the organization and
environment, which can be compatible with any or all the Ps.
5. Perspective:
Strategy as a concept or ingrained way of perceiving the world e.g., aggressive
pacesetter vs. late mover which can be compatible with any or all the Ps.
Source: TechTarget
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