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 ...view middle of the document...
Giving the ma false information
- Strategy as a pattern: conerns with behaviour over time.
Strategy need to be planned, this is called intended strategy as it looks ahead. Strategy also evolves from the past and this is called realized strategies.
II. Strategic management is defined as
A set of decisions and actions that result in formulation and implementation of plans designated to achieve company’s objectives (Pearce and Robinson (2009:3)
III. The Role of Strategic Management in contemporary business environment
The primary objective of strategy is to achieve a sustained competitive advantage as this leads to above-average returns (Louw and Venter 2010:19)
The success of an organization is concerned with overall effectiveness and efficiency of its management.
Strategic management is concerned with overall effectiveness and choice of direction.
Strategic directions have long-term implications and concern the entire organization
It is more than making decisions and strategic planning
Strategic management has to ensure that strategy is formulated and implemented successfully
It is the process by which organizations determine what value is needed and how to add that value.
Strategic Management is concerned with the following (Louw and Venter 2010:21)
Strategic planning, which entails the following
- Setting the strategic direction within a stakeholder context.
- Analyzing the external and internal organizational environments.
- Developing and formulating effective strategies that balance the organization’s internal with its external environment, facilitated by strategic decision enablers
- Establishing a clear direction for the organization and a means of getting there, which requires creation of strong competitive position
Here the organizational architecture, which is the skills, abilities, technology, systems and processes, are brought together with leadership activities and are integrated to achieve performance.
Strategic management is finally concerned with integrating sustainability into the strategies.
The overall strategy is a collection of strategic initiatives and actions developed by managers and key employees.
There are three levels of strategy:
Corporate level strategy
This relates to the overall purpose and scope of an organization and addresses the question of how value can be added to all business levels.
Senior management takes general decisions about what business is and what it’s ought to be.
Business level strategy
This relates to how the organization competes and attains a competitive advantage in each area of business through products and/or services developed for markets, creation of value for customers.
The General Manager is in charge of the business level strategy. He also has to see to it that the strategy at this level matches the corporate strategy
Functional level strategy
This level includes operational level strategy. This is where the...