STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

Introduction

This paper will be discussing current economic climate, evaluate if prescriptive strategic planning is still relevant / useful and discuss possible alternative approaches to strategic planning. This paper will be consisting of literature review for this first we will be discussing how the economy is at the moment/ unstable economy, Organisation view on strategic planning, and is strategic planning still useful/relevant? Also be discussing, Prescriptive of strategic planning and possible alternative approaches relating to strategic planning.

The importance of the different planning areas varies depending on industry, economic situation, age of the company and other factors. They usually build on the area that represents the major bottleneck in the company. The following hierarchical constellation starts out from the shoulder, which may for example in the manufacturing sector are the basis for further sub-plans. (If sales volumes are known or planned, production can be planned, it is clear of material requirements, etc.)

Discussion and Analysis

Current Economic Situation

The current global economic scenario is characterized by constant change, its dynamism, its competitiveness and where organizations play a significant role, which requires management to be careful about how it should be the organizational behaviour of the company to survive and continue on course. The business world moves and turns ever faster speeds given the competitive level of other organizations. To compete and be among the best, they must feed on various nutrients that make business and strong sturdy trees.

Comparing different Approaches to Strategic Management

Distinguishing between effective and ineffective management approaches is a primary focus for much of management research. In the early part of the 20th century, Frederick Taylor and other management pioneers sought to identify the “one best way” of solving managerial problems. From this point of view, organizations were best understood in terms of direct, linear relationships between variables often represented by main or direct effects. In an effort to make organizations understandable, predictable, and controllable, management scholars and practitioners have advanced a rational approach to the practice of management. The 17th-century invention of the scientific method fostered a worldview of thought and practice based on reason (Toulmin, 2001, Pp. 13-54). Adopted by F. W. Taylor (1911, Pp. 23-45), the scientific method was translated as “scientific management,” which has evolved and continues to exist in the more technically sophisticated methods of “management science”. Wheatley (1992, Pp. 43-68) notes that most strategic management theorists, from Chandler to Porter, have been influenced by the scientific logic of engineering, which has resulted in attempts to create a systematic, rational approach to business strategy. The scientific method facilitates structured and orderly thought processes that lead to verifiable conclusions. The parsimony of such a method is naturally attractive to those studying organizational strategy and has also been well received by those practicing strategic management.

Strategic management refers to the branch of Business Administration, which deals with the development, planning and implementation of content, goals and direction of organizations concerned. The time horizons in strategic management generally include two to five years, and not strategically equivalent to the ...