Premium Essay

Strategic Management

In: Business and Management

Submitted By rdapaah
Words 2003
Pages 9
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 its suppliers. It also seeks to find out if the company have a good rapport with its creditors, if it’s actively trying to increase the value of the business for its shareholders and who the competition is.
Strategy Formulation
Strategy formulation involves designing and developing the company strategies. Determining company strengths aids in the formulation of strategies. Strategy...

Similar Documents

Premium Essay

Strategic Management Strategic Management

...Nokia Out designs Apple There was a time, not so very long ago, when Microsoft was a top seller of smartphone software. And Nokia, the Finnish electronics company, was the top seller of mobile devices. Then both of them got blindsided by Apple’s introduction of the iPhone in 2007. At first they just laughed. Who would buy that crazy overpriced phone from Apple that doesn’t even have a keyboard? Lots of people, it turns out. Which is why Nokia has seen the market share of its Symbian smartphone platform collapse to 19 percent today from 63 percent in 2007, according to IDC, a market researcher. Microsoft once had 13 percent share but now has only 2 percent, IDC says, making its presence almost negligible. But now, working together, these companies are trying to plot a comeback, and based on the phone they introduced at the Consumer Electronics Show on Monday, they might actually stand a chance. The sleek new Nokia Lumia 900 (PDF) has a 4.3-inch screen, an 8-megapixel camera, and runs on AT&T’s speedy new 4G LTE network. The phone “represents a new dawn for Nokia in the U.S.,” said Chris Weber, president of Nokia Americas, in a press release. Nokia also released a YouTube video showing off the new phone. The Lumia 900 runs the latest version of Microsoft’s mobile phone software, which is called Windows Phone 7.5 (code-name: Mango). This is a stunning piece of software that is radically different from what you get on an Apple iPhone or any of the Android phones.......

Words: 953 - Pages: 4

Premium Essay

Strategic Management

...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....

Words: 4525 - Pages: 19

Premium Essay

Strategic-Management

...GRADUATE BUSINESS SCHOOL 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....

Words: 1985 - Pages: 8

Premium Essay

Strategic Management

...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

Premium Essay

Strategic Management

...22716C Developing Strategic Management and Leadership Skills Unit code: F/602/2058 QCF Level 7: BTEC Professional Credit value: 10 Guided learning hours: 30 Unit aim This unit provides the learner with an understanding of the links between strategic management, leadership and organisational direction, and the skills to be able to apply this understanding. Unit introduction The main aim of this unit is to investigate how current thinking on leadership influences an organisation’s planning to meet current and future leadership requirements. Learners will gain an insight into the current thinking on leadership from an organisational perspective. They will examine the links between strategic management and leadership, particularly the skills a leader needs to support organisational direction. The unit will help learners understand the impact of management and leadership styles on strategic decisions in differing situations, through examining the competences and styles of successful leaders. Applying management and leadership theories and models to specific situations will enable learners to assess their impact on organisational strategy. The unit will draw on a selection of established principles, including the influence of emotional intelligence on leadership effectiveness. This will enable learners to assess how organisations can plan to meet current and future leadership requirements....

Words: 1062 - Pages: 5

Premium Essay

Strategic Management

...Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure. “Strategic management is an ongoing process that evaluates and controls 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 Strategic management can...

Words: 7313 - Pages: 30

Premium Essay

Strategic Management

...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....

Words: 5592 - Pages: 23

Premium Essay

Strategic Management

...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

Premium Essay

Strategic Management

...A 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....

Words: 3830 - Pages: 16

Premium Essay

Strategic Management

...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....

Words: 3152 - Pages: 13

Premium Essay

Strategic Management

...The discussion in the strategic management includes how to manage the organization during the...

Words: 3445 - Pages: 14

Premium Essay

Strategic Management

...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....

Words: 1457 - Pages: 6

Premium Essay

Strategic Management

...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....

Words: 23604 - Pages: 95

Premium Essay

Strategic Management

...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 is described as the “ direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment...

Words: 3473 - Pages: 14

Premium Essay

Strategic Management

...The budget is scrutinized by top management officials that is often re-evaluated by an outside company to ensure the effectiveness of the plan. Strategic Management provides an opportunity for top management to work with lower management in work groups. These groups work to develop a plan that helps meet the company’s proposed goals. This helps forecast the future and sets up re-evaluation plans to assist the company in meeting the projected goals. In today's competitive...

Words: 705 - Pages: 3