STRATEGIC MANAGEMENT

Critical Evaluation Of Strategic Management, With Reference To A Process, Purpose And Culture

Critical Evaluation Of Strategic Management, With Reference To A Process, Purpose And Culture

This paper critically evaluate strategic management with refereence to a process, purpose and culture particularly from “Exploring Corporate Strategy - text and cases (8th ed.)” by Johnson, G, Scholes, K. and Whittington, R. in this year 2010. The book is full of good strategy analysis, the internet resources are very helpfull and if you are a student, It really makes sure that you understand the key points, the dvd is very good as well. The internet webpage and the dvd makes it mutch better. The reason why i did not give 5 stars was that I think the writter go way to mutch in details in the book,and you use a lot of time on the details, but all in one a good package. the Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. The process of Strategic Management involves deciding upon and determining the organization's objective, careful and planned development of policies and designs in order to achieve these objectives and distribution of resources in order to implement these plans and policies in an attempt to achieve the outlined objectives. Strategic Management is closely related to Organization studies and is by far the highest level of managerial activity. The Board of Directors formulates the Strategic Management and the organization's chief executive officer (CEO) and the executive team is required to perform.

“Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” (Johnson, 2010).

Strategic Management involves three main processes explained below:

Strategy formulation includes performing a situation analysis, self-assessment as well as competitor analysis. Simultaneously, objectives are specified which further includes long-term views, corporate objectives (financial and strategic), tactical objectives and the role of the particular organization in society (Johnson, 2010).

This process involves distribution of resources (financial, personnel, time, and technology support). The next step involves assigning tasks or responsibilities to specific individuals or groups and thereafter, monitoring the progress and results. Careful assessment of the process, controlling for variances and making the required adjustments form vital components of this process.

As the term suggests, this process includes evaluation of the efficacy of the organizational strategy implemented.

Therefore, successful strategic management must include clearly defined objectives, careful assessment of both the internal and external situation to formulate the strategy, implementing the strategy and making the required adjustments as and when required (Johnson, 2010).

The company must possess a clear vision of its long ...