Strategic Management
by
Smart Learning ay
The systematic analysis of the
factors associated with customers and competitors (the external environment)
and the organization itself (the internal environment) to provide the basis for
maintaining optimum management practices. The objective of strategic
managementis to achieve better alignment of corporate policies and strategic
priorities.
Strategic management involves the
formulation and implementation of the major goals and initiatives taken by a
company's top management on behalf of owners, based on consideration of
resources and an assessment of the internal and external environments in which
the organization competes. Strategy is defined as "the determination of
the basic long-term goals of an enterprise, and the adoption of courses of
action and the allocation of resources necessary for carrying out these
goals." Strategies are established to set direction, focus effort, define
or clarify the organization, and provide consistency or guidance in response to
the environment.
Strategic management involves the
related concepts of strategic planning and strategic thinking. Strategic
planning is analytical in nature and refers to formalized procedures to produce
the data and analyses used as inputs for strategic thinking, which synthesizes
the data resulting in the strategy. Strategic planning may also refer to
control mechanisms used to implement the strategy once it is determined. In
other words, strategic planning happens around the strategic thinking or
strategy making activity.
Strategic management is often
described as involving two major processes: formulation and implementation of
strategy. While described sequentially below, in practice the two processes are
iterative and each provides input for the other.
The management of an organization’s
resources in order to achieve its goals and objectives. Strategic management
involves setting objectives, analyzing the competitive environment, analyzing
the internal organization, evaluating strategies, and making sure that the
strategies are rolled out across the organization.
The term strategic management is used
to refer to the entire scope of strategic-decision making activity in an
organization. Strategic management as a concept has evolved over time and will
continue to evolve. As result there are a variety of meanings and
interpretations depending on the author and sources. For example, some scholars
and practitioners the term strategic planning connote the total strategic
management activities. Moreover, sometimes managers use the terms strategic
management, strategic planning, and long-range planning interchangeable. Finally,
some of the phrases are used interchangeably with strategic management are
strategy and policy formulation, and business policy.
Strategic management is the process of
managing the pursuit of organizational mission while managing the relationship
of the organization to its environment (James M. Higgins).
Strategic management is defined as
the set of decisions and actions resulting in the formulation and
implementation of strategies designed to achieve the objectives of the
organization (John A. Pearce II and Richard B. Robinson, Jr.).
Strategic management is the process
of examining both present and future environments, formulating the
organization's objectives, and making, implementing, and controlling decisions
focused on achieving these objectives in the present and future environments
(Garry D. Smith, Danny R. Arnold, Bobby G. Bizzell).
Strategic management is a continuous
process that involves attempts to match or fit the organization with its
changing environment in the most advantageous way possible (Lester A. Digman).
Bibliography
http://www.investopedia.com/terms/s/strategic-management.asp
http://www.businessdictionary.com/definition/strategic-management.html
http://www.introduction-to-management.24xls.com/en202
No comments:
Post a Comment