...What Is Strategic Management, Really? Inductive Derivation of a Consensus Definition of the Field Rajiv Nag Department of Management WCOB468 Sam Walton College of Business University of Arkansas Fayetteville, AR, 72701 Tel: (479) 575-6650 Fax: (479) 575-3241 Email: Rnag@walton.uark.edu Donald C. Hambrick The Pennsylvania State University Smeal College of Business 414 Business Building University Park, PA 16802 (814) 863-0917 Fax: (814) 863-7261 dch14@psu.edu Ming-Jer Chen University of Virginia The Darden School Charlottesville, VA 22906-6550 (434) 924-7260 Fax: (434) 243-7678 chenm@darden.virginia.edu October 18, 2006 (Strategic Management Journal, forthcoming) Acknowledgements: The authors are indebted to all those individuals who participated in the survey. The authors thank Hao-Chieh Lin for his help in the early stages of this research. We acknowledge financial support from the Batten Institute and the Darden Foundation, University of Virginia. A note of thanks to Tim Pollock, Wenpin Tsai, and two anonymous reviewers for their extremely useful comments on earlier versions of this manuscript. Keywords: Strategic Management, Academic Communities, Linguistics. 1 What Is Strategic Management, Really? Inductive Derivation of a Consensus Definition of the Field ABSTRACT It is commonly asserted that the field of strategic management is fragmented and lacks a coherent identity. This skepticism, however, is paradoxically at odds with the great success that strategic...
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...1. What is Strategic Account Management? * Strategic account management is a systemic process for managing key interactions and relationships with critical accounts * 20% of customers generate 80% of the revenue/profit * Strategic accounts tend to provide a disproportionate share of a firm’s revenue/profit * Must manage account relationships, and be accountable for ongoing and long-term financial growth 2. 3. What are the benefits of Strategic Account Management? * Strategic account management can offer a competitive advantage, the key to greater loyalty, and the road to higher profitability * A well-designed and well executed strategic account management program can minimize, or in some cases, eliminate competition 4. What are the challenges of implementing Strategic Account Management? * Programs falter when firms underestimate the time, resource requirements, and complexity of rolling out the program * Creating a systemic way to manage strategic accounts is a little like putting down the road as you’re driving on it * You must maintain your firm’s financial performance while reinventing the way it serves its most critical customers. This is perhaps the greatest challenge in implementing strategic account management. 5. Create cross-functional executive leadership * This leadership helps create and communicate the urgency that ensures organizational commitment to strategic account management * These cross-functional...
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...Introduction The aim of strategic orientated HRM is the creation of competition advantages by integrated measures in the areas of selection, use, cooperation, remuneration systems, education and further education as well as the motivation of the executives and employees. Strategic orientated HRM comprise not only the selection and development of persons, also the arrangement of an organisation and the corporate culture in accordance with the corporate policy and the strategy from the corporation (Schumacher, 2009). Very important for a good convert of a strategy is a good top management. Which can keep down the strategy to the line managers and normal employees. The strategic management process is typically broken down in five steps as you can see above. The first step in the model begins with senior managers evaluating their position in relation to the organisations current mission and goals. The mission describes the organisations values and aspirations. It indicates the direction senior management is going. A goal is a desired future state that the organisation attempts to realize. The second step the environmental analysis looks at the internal organisational strengths and weaknesses and the external environment for opportunities and threats. The factors which are most important to the organisations future are referred to as strategic factors and are summarized with the acronym SWOT (strength, weaknesses, opportunities and threats). The third step the strategic formulation involves...
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...APPLE, Inc. What is Strategic Management, and why is it critical to the success of an organization in meeting its goals and mission? What is Strategic Management? The concept of "strategy" is based in a war scenario, the constant fights and battles over the centuries have caused the military to start thinking before you act- the battles are analyzed and planned in advance. In General Sun Tzu’s words: “The general who wins a battle makes many calculations in his temple ere the battle is fought.” When translating it to today’s Strategic Management’s words, it means: “Those companies and individuals who win in the business world make much calculation, planning and deliberations on their strategy and plans. Those who plan less have lower chance of success, much less those who don’t plan anything at all.” (Soo, 2011). Developing a Strategic Planning increases the likelihood that in the future, the organization will be in the right place at the right time. Strategic Management collects all activities and processes utilized by an organization in order to align resources and actions with mission, vision and strategy throughout the organization. When applied correctly, strategic management activities transform the vision into performance and enable the plan to evolve and grow as requirements and other circumstances change. Apple – Both sides of the fruit The right side In researching the Apple’s success, we can find a myriad of reports appreciating this fact....
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...Strategy and Planning What is Strategy? The term ‘strategy’ proliferates in discussions of business. The term ‘strategy’ is derived from the Greek word ‘stratēgia’, which means the “art of the troop leader”: a plan, course of action, or a set of decisions creating a pattern or a common link. All the successful business enterprises today constantly take in new information about their markets, customers, and operating environments. Then, management uses that knowledge and data to shape new strategic directions, to reorganise how they respond to marketplace demands, and to ensure that their views regarding all aspects of the business are fresh and viable. Strategy is the direction and scope of an organisation over the long-term, which achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholder expectations. What is the difference between Tactics and Strategy? Strategy differs from tactics. Tactics are schemes for specific manoeuvres, whereas strategy is the overall plan for deploying resources to establish a favourable position. An organisation’s strategy consists of the combination of competitive moves and business approaches that managers employ to please customers and achieve organisational objectives. Strategy is a plan or course of action denoting a pattern which evolves a direction for the organisation. It relates to pursuing those activities which move an...
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...UNIVERSITY OF BOTSWANA DEPARTMENT OF POLITICAL & ADMINISTRATIVE STUDIES MPA 713 – STRATEGIC PLANNING & MANAGEMENT IN THE PUBLIC SECTOR TERM PAPER Discuss the relationship between strategic planning and strategic management as well as indicate the importance of the latter in the attainment of organizational goals. KEALEBOGA R. MOOKETSI 200301911 Introduction This paper intends to discuss the relationship between strategic planning and strategic management as well to indicate the importance of the latter in the attainment of organizational goals. . In order to lay a proper foundation for the essay, it is important to start by looking at the concept of strategy and linking it to planning and management. Defining Strategy A strategy is a plan of action designed to achieve a specific goal. Strategy is all about gaining (or being prepared to gain) an advantage over adversaries or best exploiting emerging possibilities. According to Jeffrey Pfeffer (1997:4), a strategy is a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. It can also be defined as the art and science of planning and marshaling resources for their most efficient and effective use. Kvint, Vladimir (2009, pg. 67), defines strategy as “a pattern in a stream of decisions" to contrast with a view of strategy as planning’’ while Max McKeown (2011, pg. 342) argues that "strategy is about shaping the future" and is the human attempt to get to "desirable...
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...Literature Review: Strategic Management BUSI 600 Business Research Methods Thomas Sheppard Liberty University October12, 2012 Abstract In order to have a successful study, a review of the literature will be undertaken. Then the methods and standards that were used will be addressed, and any questions that are being considered for further research into the area of strategic management will be discussed. From that point, it is vital that conclusions be drawn and recommendations be offered to wrap up the study. Without these components, it is often not clear whether a researcher has a thorough understanding of what the study was designed to do, and it is also not clear if said researcher is certain as to what else should be done in the area and should be questioned when it comes to that particular issue. In short, studies without these components lack completeness and that can make it difficult for anyone in the future to use the study as a jumping off point for similar studies or studies into related issues. The concept of strategic management is one that is highly important to organizations around the world (David, 2009). It involves taking a look at the top management of a company and the resources that management team is using on behalf of the company's owners and in order to show a specific level of performance. The mission, vision, and objectives of the organization must be examined, and it is necessary for them to...
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...question(s) in strategy is (are) A) Is strategy important? B) Why do firms succeed or fail? C) Why do firms have varying levels of performance? D) Is strategy important? and Why do firms have varying levels of performance? E) Why do firms succeed or fail? and Why do firms have varying levels of performance? Answer: E Diff: 2 Page Ref: 2 Topic: Explain Why Strategic Management Is Important AACSB: Reflective Thinking Objective: Define strategic management and identify its basic components 2) Bases for understanding strategic management are all of the following except A) managing strategically makes a difference in an organization's performance. B) all organizations encounter changing situations. C) single approaches to strategy development are superior to multiple approaches. D) All of the answer choices are correct. E) None of the answer choices is correct. Answer: C Diff: 3 Page Ref: 3 Topic: Explain Why Strategic Management Is Important AACSB: Analytical Skills Objective: Define strategic management and identify its basic components 3) Strategic management is defined as A) those decisions and actions where organizational members analyze the current situation and develop appropriate strategies. B) putting those strategies into action. C) evaluating and changing those strategies as needed. D) developing appropriate strategies. E) All of the answer choices are correct. Answer: E Diff: 2 Page Ref: 5...
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...Strategic Management Process Paper Miguel Valdez MGT/498 August 17, 2015 Paul Kramer Strategic Management Process Paper Describe the primary components of a strategic management process, and indicate why a strategic management process is needed for a company. Strategic Management is a set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. Its purpose is to identify strategic factors those external and internal elements that will determine the future of the corporation. The simplest way to conduct environmental scanning is through SWOT analysis. Which, SWOT is an acronym used to describe the Strengths, Weaknesses, Opportunities, and Threats, that are strategic factors for a specific company. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management. These variables form the context within which the corporation exists. However, the internal environment of a corporation consists...
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...RUNNING HEAD: STRATEGIC MANAGEMENT PROCESS Strategic Management Process Marty Carbajal MGT/498 Strategic Management F. Everett Hardee June 24, 2013 The purpose of this paper is to illustrate and discuss the components of the strategic management process and to indicate why such a process is necessary for an organization. Strategic management involves several steps, one of which most fundamentally is strategic planning as the organization needs to determine where in the business environment it exists and where it is going. Strategic Management Strategic management involves a series of management decision, plans, and actions that involve the long run performance of the organization. These actions include environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring, and evaluating of external opportunities and threats considering a corporation’s strengths and weaknesses (Wheelen & Hunger, 2010). Strategic management is a method of recognizing and executing the mission of the organization by matching its capabilities with the demands of its environment. It is to identify the organization’s strengths and weaknesses while exploiting its strengths and minimizing its weaknesses. These steps are used to create competitive advantages and advance toward a vision created for the organization. Phases...
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...Chapter 2 Strategic Management and the Entrepreneur 1) The strategic management process: Topic: Introduction 2) A small business's "aggregation of factors that sets it apart from its competitors" is its: Topic: Building a Competitive Advantage 3) How is the strategic planning process for small companies different from that for large Page Ref: 41 Topic: Building a Competitive Advantage 4) ________ focuses everyone's attention and efforts on the same target market. It is an expression of what the owner believes in. Topic: The Strategic Management Process 5) Answering the question "What business am I in?" defines the company's: Topic: The Strategic Management Process — Develop a Clear Meaningful Mission 6) Once the vision and mission are established, the entrepreneur needs to: Topic: The Strategic Management Process 7) ________ are positive internal factors that contribute towards accomplishing the company's objectives. Topic: The Strategic Management Process 8) When the small business owner assesses her company's strengths and weaknesses, she is dealing with the ________ business environment. Topic: The Strategic Management Process 9) Corey notices a "backlash" against health food among people who eat out. He decides to open a restaurant that stresses "good home cooking," heavy with gravies, breads, oils, etc. Corey has identified and is trying to capitalize on a(n) ________ in the market environment. Topic: The Strategic Management Process...
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...I. INTRODUCTION STYRATEGIC MANAGEMENT: DEAD OR IN DEMAND AS NEVER BEFORE A lot of companies are striving hard to get a place in business. A number of those that started die along the way due to lack of proper strategy. Yes, I do believe that organizations with proper strategy implemented and managed stand a better chance and have better competitive advantage over their counterparts. Strategic management is used by organizations to analyze and learn from their internal and external environment. It is about going forward (where to from here) It is about establishing a strategic direction. It is about establishing a strategic direction Strategic management is also about implementing strategies that would satisfy customers. The nature of strategy, which needs to be managed, is formulated around the 5 Ps (Louw and Venter 2010:15) Plan, pattern, position, perspective and ploy. As a plan, strategy has been viewed as something that an organization has, and strategy as a perspective viewed as something that people do. Strategy is influenced by extra organizational practices and inter-organizational practices. Therefore there is a reciprocal relationship between intra and extra organizational strategic activities. - Strategy as a plan: Provides overall direction and course of action. As a plan, strategy formulation is a formal process. This approach ahs been criticized for being a rational, top-down approach, hoever research shows that formal planning contributes...
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...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...
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...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...
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...Short Essay on Strategic Management Strategic Management Strategic management basically aims at identifying and describing the strategies, which would be utilized by the managers of the organization, in order to attain better performances as well as competitive advantage for the company. Additionally, it is also considered to be a set of decisions as well as actions, which are taken by the managers or the top management in order to attain the objectives of the organization. Since, this is an ever changing environment, the managers must have all the information and knowledge, in order to cope up with these changes. The manager should be able to make sound decisions and utilize the resources of the company more effectively and efficiently. The initial stage for the manager is to analyze the organization itself, by conducting a SWOT analysis. In accordance with this, the decision takers look to devise a strategy. The major focus of the strategy is the utilization of the strengths of the firm, in the best possible manner. Apart from that, the organization should look to minimize its weaknesses, make best possible usage of the opportunities that arise within the market and always be aware of the threats to the organization. A strategy is developed to cover all these areas. This is the basic function of strategic management. The resources of every organization are limited and have to be utilized efficiently, so that the best possible profit could be gained off of them. For...
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