STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

Explain the aims, concept and role of strategic management

Strategic management can be defined as a set of fundamental solutions designed to ensure that the firm's environment, its development and hence viability of the enterprise in a fairly long run. Examples of such strategic decisions are, in particular, choice of markets and the range of goods produced, the extent and location of activity, methods of competition and business partners, sources of supply of materials and marketing concepts, technologies and structures of production capabilities, organizational structure, legal structure and management systems including recruitment and training of managers of the required types, the formation of adequate organizational culture, etc. These decisions are interdependent. Let us assume that due to changes in supply and other environmental conditions forced the company to formulate a new strategy of "products - the markets (Evens 1997, pp. 121)."

It goes without saying that the new strategy should match the company's business opportunities the structure of production capacity, composition and quality of personnel, potential service for research and development, marketing channels available, special skills, which is the source of competitiveness, and so forth despite the fact that all these aspects, perhaps too serious changes are inevitable. Each strategy is in this sense, the reaction of the organization to external conditions, but the reaction is not arbitrary, but limited competence and competitiveness of enterprises, as well as the means at its disposal. Further, the new business strategy can lead to reorganization of the company and the reconstruction of the control system until the change of senior managers, because, for example, that the old profile does not match new conditions. Finally, all these changes can not depend on the level of aspiration, enterprise and leading values of shareholders and managers and in a broader sense, are bound to be mediated by a specific organizational culture, which defines the behavior of the firm and, as experience shows, is extremely inert.

Ultimately, the quality of strategic management is judged by the extent to which it provides a balance of the organization with the external environment and internal balance and stability of the firm. At the same time, it is one of the key factors of competitiveness and profitability, as well as the successful implementation of their various requirements, which impose on us its many modern "accomplices", consumers, investors, managers, executive staff, trade unions, farm contractors, government agencies, public-interest movement etc (Galbraith, 1991, pp. 353). Strategic management is associated with the production goals of the organization and maintenance of certain relationships with the environment, which enable it to achieve the set objectives and meet its internal capabilities. Potential to achieve the objectives of the organization in the future is a product of strategic management.

Evaluate the debates surrounding contemporary strategic issues

The issues of strategic management are most often occurring as a result of numerous external factors. Therefore, to avoid mistakes in choosing a strategy, it is important to determine what economic, political, scientific, technological, social and other factors that influence the organization's ...