STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

The Fundamentals of Strategic Management

The fundamentals of Strategic Management” provide us with a summarizing and short, evaluation of the most important concept and technique in strategic management.

Basics Concepts of Strategic Management

Set of managerial decisions and actions that help in determine the long-run performance of a corporation, is termed as Strategic management. It include first the environmental scanning (both external and internal), then the strategy formulation (strategic or long range planning), then the strategy implementation, and monitoring and control. Therefore, strategic management emphasize on the controlling and evaluating of external and internal factors (Earl, 1996: 45-50).

Evolution of Strategic Management

Unplanned strategy cannot be continues productively if

Corporation expands,

Managerial layer increase,

Environment changes significantly.

Part 1 - elementary financial setting up: look for improved operational control through meeting budgets.

Part 2 - forecast planning: looking for more efficient planning for expansion.

Part 3 - External factor setting up (strategic planning): looking for growing sensitivity to competition and markets with the help of thinking strategically (Mintzberg, 1990: 176-95).

Part 4 - Strategic management: looking for a successful future and a competitive advantage by managing all resources. Moreover this phase also includes strategy implementation, then its evaluation and controlling.

In the phase 4 of the development of the strategic management of 4 includes a strategic implementation, evaluation and control considerations

SM helps the company to operate in complex and dynamic environment. In order to be competitive in external and internal environment, corporations are more focusing on flexibility and less bureaucratic environment. The strategies are more involved in defining the competitive position of their firm and then defending it (Lynch, 1997: 45-89).

Corporation must evolve flexibility in strategies and must gain the ability to shift from one particular strategy to another. Although it require, long term commitment for the development and utilization of efficient resources. Company need to keep on progress and adopting new procedure and learning process. Organization efficient in acquiring, creating, and transferring knowledge and then altering its behaviour give the image of information advancement. Moreover, organization with learning attitude can also avoid stability with experimental and improving approach. Everyone in the organization should contribute in the strategy formulation, and suggest their opinion in betterment of strategy, improving work methods and techniques.

Basic Elements of Strategic Management

Following are the four basic element of strategic management:

a. Environmental scanning

b. Strategy Formulation

c. Strategy Implementation and

d. Evaluation and control

In order to find the external opportunities and threat and internal strength and weakness, organizations go for scanning external and internal environment. For this, the most important factor is SWOT analysis.

Strategy Formulation

Planning for long-run plan by scanning the external factor and keeping in mind the internal factor, come under the strategy formulation. Strategy formulation is based on defining the organizational mission, its major objectives and building strategy and maintains its policies.

Mission

Mission includes organizational purpose or reason for its existence and how it's benefitting the society. Mission that defines the company's purpose properly makes him apart from others and also gives ...