Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management.
First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two ...view middle of the document...
Managers must also ask how to make such advantages sustainable, instead of highly temporary, in the marketplace. That is: How can we create competitive advantages in the marketplace that are not only unique and valuable but also difficult for competitors to copy or substitute? Ideas that work are almost always copied by rivals immediately. In the 1980s, American Airlines tried to establish a competitive advantage by introducing the frequent flyer program. Within weeks, all the airlines did the same thing. Overnight, instead of competitive advantage, frequent flyer programs became a necessary tool for competitive parity, not competitive advantage. The challenge, therefore, is to create competitive advantage that is sustainable.
Michael Porter argues that sustainable competitive advantage cannot be achieved through operational effectiveness alone. Most of the popular management innovations of the last two decades-total quality, just-in-time, benchmarking, business process reengineering, outsourcing all are about operational effectiveness. Operational effectiveness means performing similar activities better than rivals. Each of these is important, but none lead to sustainable competitive advantage, for the simple reason that everyone is doing them. Strategy is all about being different from everyone else. Sustainable competitive advantage is possible only through performing different activities from rivals or performing similar activities in different ways. Companies such What is strategic planning?
Strategic planning is a management activity priorities, strengthen operations, ensures that work toward common goals, establishing agreements about results and evaluation is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does and why it does it, with a focus on the future. Effective strategic planning articulates the actions necessary to advance, also how you will know if it is successful.
What is a Strategic Plan?
A strategic plan is a document of the objectives of the organizations, the actions necessary to achieve these objectives of planning.
What is Strategic Management?
Strategic management is ongoing activities and processes used by organizations to coordinate and align resources and actions consistently with the mission, vision and strategy of an organization. Strategic management activities transform the static plan a system that provides strategic performance information for decision-making and allows the plan to evolve and grow as requirements and other circumstances change.
What are the steps in Strategic Planning and Management?
1) analysis, or evaluation, which develops an understanding of the current internal and external environments, 2) the development of strategies, 3) execution of strategy, and 4) evaluation or logistics / management of the disposal, where refinement and evaluation continuous outcomes, culture, communications, data...