The nature of strategic management

The nature of strategic management
Strategic Management Achieves Organizational Succes
Process of integrating:
-management
-marketing
-finance/ accounting
-production/operations
-researchand developement
-computer information systems .
Trhee stage Process
Strategy formulation
Strategy implementation
Strategy evaluation
Strategy formulation
Vision and missionOpportunities
Strengths & weakness
Long-term objectives
Alternative strategies
Strategy selection
STRATEGY FORMULATION
Issues included:
-what new bussiness to enter
-what bussiness to abandon-how to allocate resouroces
-expand operations or diversify
-enter international markets
-merge or form joint venture
-avoidance of hostile takeover
***Strategy implementation
Annualobjectives
Policies
Employee motivation
Resource allocation
* Action of strategic management :
-most difficult stage
-mobilizing employees and managers
-interpersonal skills are critical-consensus on pursuing goals
* Strategy evaluation
Internal review
External review
Performance measurement
Corrective action
***Final stage of strategic management :
-all strategies subject tofuture modification
-success today is no guarantee of success tomorrow
-success creates new and different problems
-Complacency leads to demise

According to Peter Drucker….
The prime task isto think through the overall mission of a business
Integrating intuition and analysis
* The strategic management process
Attempts to organize qualitative information under conditions ofuncertainty
Intuition based on :
-past experiences
-judgment
-feelings
Useful for decision making
-conditions of great uncertainty
-conditions with little precedent
Adaptation to changeOrganization must monitor events
-on going process
Internal and external events
Timely changes
Magnitude of change
* E-commerce
* Demographics
* Technology
* Merger-mania...