...INTRODUCTION TO STRATEGIC MANAGENT 1.0 Introduction This chapter introduces the concept of strategic management and provides an overview of strategic management. This chapter is divided into six sections. The first section explains the evolution of the strategic management concept. This is followed by the second section on definition of strategic management. The third section describes the context in which strategic management takes place. This is followed by the fourth section which covers the scope of strategic management. The fifth section shows some of the benefits of strategic management for organizations. Finally the sixth section describes the process of strategic management. Upon the completion of this chapter you should be able to: 1. understand the concept of strategic management 2. know the brief history of the strategic management concept 3. understand the definition of strategic management 4. know the context in which strategic management occurs 5. comprehend the scope of strategic management 6. describe the benefit of strategic management 7. know the strategic management process 1.1 Introduction to the Strategic Management Concept Strategic management is a concept that originated from the military field. The concept of strategic management was first applied in ancient battles. The period around 500 B.C. saw numerous battles that took place Greece and China. The early written record on strategic management can be traced back during this warring...
Words: 4525 - Pages: 19
...FACULTY OF BUSINESS MANAGEMENT MGT 790 STRATEGIC MANAGEMENT Course Outline 2011 Course Prescription Strategic Management is the process and practice of managerial decision making and implementation that seeks to create and maintain competitive advantage. In essence it determines the long term performance of a business and as such is the role of the senior executive members to refine but the responsibility of all to roll out. Included in the process is comprehensive environmental scanning, strategy formulation (strategic planning), strategy implementation, and monitoring. Students in this course will review how the strategic decision makers within an organisation first identify, define and analyse commercial problems and then develop practical and ethical solutions. It provides a practical guide for, and an initial experience in, strategy formulation and strategic management. Class time will be largely spent in lecture, discussion, case studies and experiential exercises. Students will learn from the theoretical literature, instructor, case studies, videos, research presentations, and from each other. The course materials explain and describe the different aspects, challenges, and stages of strategic management simply and clearly. Goals of the Course To examine and understand the nature and role of strategy, strategic management and strategic leadership within an organization. Learning Outcomes 1. To develop skills in strategic analysis, development...
Words: 1985 - Pages: 8
...Strategy is a diverse term that is differently perceived by different people. However, here we are concerned with its meaning in relation to the higher management of organizations. Strategy may be defined as the direction and scope of an organisation over the long term, which achieve advantage in a changing environment its configuration of resources and competences as to fulfil the expectations of the stakeholders. For any plan to be successful, it is crucial to use the tool of effective management. Strategic management would be the right term to use here. Under the phenomenon of strategic management, organizations try to procure benefits by amalgamating realistic plans and meaningful actions. Strategic management is a phenomenon that can be classified into three elements. These are strategic position, strategic choices, and strategy implementation. Strategic position is central to the strategic management according to which any business entity must evaluate its position in relation to macro and micro environment. Macro environment includes the political, economic, social, technological, legal, and ecological factors. Obviously, a business organization cannot be immune to all these factors. A continuous change in the intensity of these factors means that their impact on the business will keep changing. Decisions are, therefore, should be taken by keeping in view these factors. Factors of micro environment also need consideration for assessing the capability of your organization...
Words: 922 - Pages: 4
...Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.[1] It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes not only the management team but can...
Words: 7313 - Pages: 30
...Sample Assignment Assignment front sheet Qualification | Unit number and title | Pearson BTEC Level 7 Diploma in Strategic Management and Leadership (QCF) | Unit 1 Developing Strategic Management and Leadership Skills | Student name | Assessor name | | | Date issued | Completion date | Submitted on | | | | | | Assignment title | Strategic Management and Leadership Report (1 of 1) | ------------------------------------------------- LO | Learning Outcome | AC | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | 1 | Understand the relationship between strategic management and leadership | 1.1 | Explain the link between strategic management and leadership | 1 | | | | 1.2 | Analyse the impact of management and leadership styles on strategic decisions | 1 | | | | 1.3 | Evaluate how leadership styles can be adapted to different situations | 1 | | 2 | Be able to apply management and leadership theory to support organisational direction | 2.1 | Review the impact that selected theories of management and leadership have on organisational strategy | 1 | | | | 2.2 | Create a leadership strategy that supports organisational direction | 2 | | 3 | Be able to assess leadership requirements | 3.1 | Use appropriate methods to review current leadership requirements | 3 | | | | 3.2 | Plan for the development of future situations requiring leadership | 3 | | 4 | Be able to plan...
Words: 857 - Pages: 4
...1.0 WHAT ARE THE ELEMENTS OF STRATEGIC MANAGEMENT? Strategic management consists of the analyses, decisions and actions an organization undertakes in order to create and sustain competitive advantages. The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan. Situation Analysis The situation analysis provides the information necessary to create a company mission statement. Situation analysis involves "scanning and evaluating the organizational context, the external environment, and the organizational environment" (Coulter, 2005). This analysis can be performed using several techniques. Observation and communication are two very effective methods. To begin this process, organizations should observe the internal company environment. This includes employee interaction with other employees, employee interaction with management, manager interaction with other managers, and management interaction with shareholders. In addition, discussions, interviews, and surveys can be used to analyse the internal environment. Organizations also need to analyse the external environment. This would include customers, suppliers, creditors, and competitors. Several questions can be asked which may help analyse the external environment. It examines the company’s relationship with its customers and...
Words: 2003 - Pages: 9
...Reflection Paper This reflection paper describes three large sections of the author trying to convey. These three parts are Strategic Management from the writer’s point of views, Strategic Management from the participants or students’ perspectives in class discussions and application Strategic Management in everyday life, especially in the military context. 1. Strategic Management from My Point of Views Before implementing a selected strategy from several alternatives, we should carefully analyze and consider the selected strategy. Strategy analysis can take a longer time before coming to the decision-making process. The intention is that an organization will be on the effective condition and position in attempting created goals and objectives in various influences from internal as well as external factors. Sometimes internal and external factors change the level of intensity and urgency in conducting certain kinds of strategic decisions completely. The orientation of such specific strategies based on various assumptions is related to the assumption which has been used by the planner, in this case, a manager or leader in an organization to produce a decisive strategy. Managers or leaders have to fully aware that all consequences from the implementation of the strategy are being measured and estimated appropriately. After an organization formulating their strategy, then the working units in the organization can set some technical ways in conducting the strategy. The next step...
Words: 3445 - Pages: 14
...Strategic Management & Business Policy, 13e (Wheelen/Hunger) Chapter 1 Basic Concepts in Strategic Management 1) Strategic management is one decision that determines the short-term performance of a corporation. Answer: FALSE Diff: 1 Page Ref: 5 Topic: The Study of Strategic Management 2) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Diff: 2 Page Ref: 5 Topic: The Study of Strategic Management 3) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Diff: 1 Page Ref: 6 Topic: The Study of Strategic Management 4) One of the benefits of strategic management is a clearer sense of vision for the firm. Answer: TRUE Diff: 2 Page Ref: 6 Topic: The Study of Strategic Management 5) To be effective, strategic management must be a formal process. Answer: FALSE Diff: 3 Page Ref: 7 Topic: The Study of Strategic Management 6) Globalization is the internationalization of markets and corporations. Answer: TRUE Diff: 1 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management 7) As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage. Answer: FALSE Diff: 2 Page Ref: 8 Topic: Globalization and Environmental Sustainability: Challenges to Strategic Management ...
Words: 5592 - Pages: 23
...SYSTEMS APPROACH TO STRATEGIC MANAGEMENT Amanda J. Gregory Centre for Systems Studies, Business School, University of Hull, Cottingham Road, Hull, HU6 7RX, United Kingdom, A.J.Gregory@hull.ac.uk ABSTRACT Strategic management involves decision-making about an organization's objectives together with the formulation and implementation of plans, particularly regarding the allocation of resources, to support their achievement. As such, strategic management is a dynamic and complex process involving consideration of internal and external factors, and the short and long term. The effectiveness of an organization’s strategic management can critically impact upon its viability and there are many reasons why the stategic management process may fail. Such reasons include failure to: think creatively about the likely affects of plans obtain external/internal participation and commitment co-ordinate and control resources. In this paper it is argued that many of the reasons for failure may be attributed to the successive dominance of different reductionist approaches to strategic management. From a systems perspective it may be argued that such approaches represent partial approaches to strategic management that neglect the complex, embedded and dynamic nature of modern organizations. Accordingly, the reasons why strategic plans fail are taken to provide a framework for the evaluation of the potential contribution of a range of systems methodologies to the strategic management process. The systems...
Words: 3830 - Pages: 16
...Strategic Managemen Essay Subject :s Strategic Management Topic : Is Business Strategy A Mixture Of Luck And Judgement, Opportunities And Design, Or More Of An Art Than A Science? Abstract Firms or companies today face a broad array of risks, problems and issues internal to them and external factors relative to increased international competition due to globalisation. Thus, strategic management is an activity necessary to be undertaken by firms who want to sustain their existence in today’s highly competitive environment. Firms need to develop strategies as they are managements’ game plan for growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives. Strategic management is the set of managerial decisions and actions that determines the longrun performance of a firm. The question however arises as to whether strategic management is an art or a science or that it is simply a mixture of luck and good judgement. Introduction Firms or companies today face a broad array of risks, problems and issues, be they strategic, operational, financial, customer, vendor, competitor, to name a few. Moreover, concerns about increased international competition brought about by the rapid globalisation phenomenon abound not only in the US but also in Europe with the further expansion of the European Union and in Asia and Latin America due to increased economic integration in these...
Words: 3152 - Pages: 13
...Introduction 2 Strategic Management 3 Strategic ‘fit’ of the ECBM 4 Environmental Analysis 5 The Micro Environment 7 Resources Analysis (Strategic Capability) 9 Evaluation of the Strategy 10 Future Strategic Options 11 Internal development 11 External Development 12 Evaluation of the Strategic Options 13 Corporate Social Responsibility 14 Corporate Social Responsibility Stances 15 Conclusion 16 Introduction According to General Robert E. Wood “Business is like a war in one respect, if its ground strategy is correct, any number of tactical errors can be made and yet the enterprise proves successful.”[1] Wood compares strategy to war and also indicates its origin from the Greek. The Greek word “strategos” meant “military leader”. Many refer to strategy in terms of either military, games (chess) or team related (football) context. Woods also underlines the neccessity and the reason of a strategy in any organisation. The European College of Business and Management (ECBM) is a registered non-profit organisation specialising in business education. It focuses on two main areas: Personal Development Programmes and Higher Education, Business Management Programmes. This assignment will discuss the means and bases of the strategy of the European College of Business and Management, analyse the use of the strategy and evaluate the application of possible future strategic options. Strategic Management Strategy...
Words: 3473 - Pages: 14
...1 Definition of Strategic Management Strategic management is the process where managers establish an organization’s long-term direction, set the specific performance objectives, develop strategies to achieve these objectives in the light of all the relevant internal and external circumstances, and undertake to execute the chosen action plans. Strategic management steps: • specifying an organization’s objectives, • developing policies and plans to achieve these objectives, • allocating resources to implement the policies Therefore, we can see that strategic management is a combination of strategy formulation and strategy implementation. It is the highest level of managerial activity, usually performed by an organization’s Chief Executive Officer (CEO) and executive team. Strategic management provides overall direction to the enterprise. Strategy formulation involves: • doing a situation analysis: both internal and external; both microenvironmental and macro-environmental. • concurrent with this assessment, objectives are set. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives. • these objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of...
Words: 1457 - Pages: 6
...This article was downloaded by: [Academy of Management] On: 11 February 2014, At: 16:20 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK The Academy of Management Annals Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rama20 An Aspirational Framework for Strategic Human Resource Management Susan E. Jackson , Randall S. Schuler & Kaifeng Jiang a b a a School of Management and Labor Relations, Rutgers University b Mendoza College of Business, University of Notre Dame Accepted author version posted online: 04 Dec 2013.Published online: 04 Dec 2013. To cite this article: Susan E. Jackson, Randall S. Schuler & Kaifeng Jiang (2014) An Aspirational Framework for Strategic Human Resource Management, The Academy of Management Annals, 8:1, 1-56, DOI: 10.1080/19416520.2014.872335 To link to this article: http://dx.doi.org/10.1080/19416520.2014.872335 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views...
Words: 23604 - Pages: 95
...Strategic Management Process MGT/498 ROLANDO ESPIRITU September 1, 2014 Strategic Management process is used to define a process by which the management team sets up a strategy to perform better among its competitors. The strategic management process is comprised of four phases. These phase assist a business with the development of a process that will enable them to aggressively compete with the competition within a given market. The four phase are 1) Basic Financial Planning, 2) Forecast Based Planning, 3) Externally Oriented Planning, and 4) Strategic Management (Wheelen & Hunger, 2010). Basic Financial Planning consists of managers putting of activities for weeks while the planning process is place to gather ideas to be used within a proposed budget. An evaluation is completed based on historic sales figures as well as the current environmental information. The budget is a short term budget used to get through one year of planning. Forecasting Based Planning, or long term planning, consists of budgets being created that expand for three to five years. This requires extensive planning based off current market information and stretched out over a given future time period. Many endless meetings take place in order to balance out the budget. Externally Oriented Planning is the stage where the top management takes over the planning. The budget is handed off and re-evaluated. The budget is scrutinized by top management officials that is often re-evaluated by an outside...
Words: 705 - Pages: 3
...Strategic Management Process Tonya Nash MGT498 February 17. 2014 Amy Novoa Strategic Management Process Planning is a critical component of success in nearly every endeavor. From vacation planning to a simple trip to a grocery store, the level of efficiency and success is dictated by how prepared one is to complete the task. This concept goes beyond an individual, and is proven to be a crucial part of successfully operating a business of any size. This process, known as strategic management, must be constantly monitored and reevaluated to ensure the company is operating at its peak, and staying true to the unified vision that has been created for its success. There are many aspects to the strategic management process that must be assessed. The primary components of the process are to first evaluate the external and internal environment. This includes observing the threats and opportunities surrounding the business from competitors, so that the organization can maintain its competitive edge. Internally, the company must examine its own strengths and weaknesses, to help ensure that the organization is operating at its most efficient (Wheelen & Hunger, 2010). The next part of the process includes using this information to form a strategy. This is where long term plans are generated, with the goal of using the previous analysis to help the organization follow through with its mission (Wheelen & Hunger, 2010) . The strategy is then implemented, including the creation...
Words: 554 - Pages: 3
