Strategic Management - Meaning and Important Concepts Strategic Management - Meaning and Important Concepts Strategic Management - An Introduction Strategic Management is all about Strategic management and the strategy process and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization.
It has been empirically confirmed by some firms at various points in their history. In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods.
How can the firm generate more value for investors? Bruce Henderson  InHenry Mintzberg described the many different definitions and perspectives on strategy reflected in both academic research and in practice. Competitive advantage InPorter defined the two types of competitive advantage an organization can achieve relative to its rivals: It is usually done through the many steps of the process.
Competitive advantage is what keeps great organizations ahead of their competitors. Successful plans tie tracking and updating goals into organizational culture.
Prahalad and Gary Hamel suggested that companies should build portfolios of businesses around shared technical or operating competencies, and should develop structures and processes to enhance their core competencies.
An organization holds both tangible resources: The first group is normative.
Tools and approaches[ edit ] Video explaining the strategic plan of the Wikimedia Foundation Wikimedia Movement Strategic Plan PDF A variety of analytical tools and techniques are used in strategic planning. You need to give people a set of tools where they can access the KPI data both lead and lag that has been created to measure the success of the strategy.
Important managerial skills and organizational capability are essentially spread to multiple businesses. What are the unique opportunities that you can exploit in the market?
Internal environment analysis, External environment analysis and Competitor analysis Tools used: How close they are to the strategic goals and vision will determine the success or failure of the strategic plan.
The main questions to answer: People need to be willing and also have the tools to share information efficiently and with clarity. There is more focus on means resource mobilization to address the environment rather than ends goals. According to David, strategic planning is sometimes confused with strategy formulation, because strategic plan is constructed in this stage.
Who is your strategy director? Critical actions move a strategic plan from a document that sits on the shelf to actions that drive organizational growth. Where does it want to go?
This includes reviewing the KPIs and project statuses regularly and in a consistent format throughout every level of the business. Policies, Motivation, Resistance management, Leadership, Stakeholder Impact Analysis, Changing organizational structure, Performance management Even the best strategic plans must be implemented and only well executed strategies create competitive advantage for a company.
A more recent and less developed model than the linear and adaptive models, interpretive strategy is concerned with "orienting metaphors constructed for the purpose of conceptualizing and guiding individual attitudes or organizational participants.Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage.
Strategic Management Process is an ongoing process of five steps which defines the way an organization makes its strategy to achieve its goals. Using Strategic Management Process, an organization decides to implement a selected few strategies along with stakeholders, details the implementation plan and keeps on appraising the progress &.
Strategic management is a continuous process of strategic analysis, strategy creation, implementation and monitoring, used by organizations with the purpose to achieve and maintain a competitive advantage.
Jun 29, · The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy.
Strategic management process: We breakdown the traditional strategy process and 'Cascade' it into a simplified 3 step cycle that you can use and download!
The strategic management process is about getting from Point A to Point B more effectively, efficiently, and enjoying the journey and learning from it.
Part of that journey is the strategy and part of it is execution.Download