Strategic management is a key and top management activity, where all management functions meet it is one of the key pillars of management and it forms the skeleton of the overall management of each organization. This tutorial deals with the basic concepts in strategic management, covering some of the important theories and related examples. In the last chapter we have already mentioned about corporate, strategic business unit strategies, and functional strategies. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. The typical business firm usually considers three types of strategy. This definition sets the scene for three distinct stages that make up the process of strategic management. Concerning the questions dealing with types of strategies. Strategic management syllabus city university of new york. As its the final level of the cima qualification you will be focusing on strategic decision making and in particular how to lead change and. There are specific characteristics inherent to the strategic management process, and the university of minnesota is among many universities that teach strategic management to business and nonbusiness majors alike. Iv kettunen j 2006 strategic planning of regional development in higher education, baltic journal of management, 259269. Middle and lower level managers too must be involved in the strategic planning process to the extent possible. It formulates operating rules, priorities and direction in the long term, including the direction the organization wants to go.
This article discusses some of the common pitfalls of strategic management and suggests some approaches to actualize strategies that make the firms market leaders. Therefore, this research aims to assess the acquired knowledge of university management students relating to strategy and strategic management concepts with the purpose of answering the following question. Strategic management process strategic management process dr i. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that.
It is usually considered that strategic management has five critical components. As its the final level of the cima qualification you will be focusing on strategic decision making and in particular how to lead change and implementing strategy across the business. His strategic management textbook, is used in more than 400 colleges and universities to teach strategic planning. It is a rigorous explanation of many topics and concerns in strategic management.
The strategic management subject is in effect since history but has been taught as a syllabus of recent, to win over the various limiting factors attached with the organisation. A framework for the strategic management of information. Strategic management 14 levels of strategy example racal electronics decision to float off vodafone as a separate company. Support your point of view with facts from the case and concepts from the textbook. Characteristics of strategic management in innovation in the. The importance of the strategic management process in the. A version of this article appeared in the july 1980 issue of harvard. Types of strategies in strategic management bizfluent. Strategic management articles management study guide. Defining the organizations business and developing a strategic mission as a basis for establishing what the organization does or doesnt do and where its headed. Introduction definition there are three schools of strategy. Strategic management contents 1 introduction 7 2 the basis of strategy. Different strategic management models your business. An evaluation term planning appeared inadequate and firms began to turn their mohammad ahsan ullah anjuman ara khanam abstract a strategic management model is the representation of the structure of strategic management in combination of strategies and management activities.
The theory and practice of strategy in business organizations. Understanding strategic management this guide is designed to help demystify the issue of strategic management, and in conjunction with other guides in the business tools web page will help you to improve your levels of strategic focus. Pdf strategic management and strategic planning process. He is the transouth professor of strategic management at francis marion university in florence, south carolina. May 17, 2018 strategic management models are conceptual tools that companies use to allocate resources and to meet the companys goals and objectives. The subject is situational and so a script will never be enough but is meant to imbibe in student a. The management of projects describes the organisations ability to select, nurture and deliver projects and programs effectively.
Vertical integration intensive strategies diversification strategies defensive strategies 1. Strategic surprisingly, here there is ready agreement. It is a flow of objectives from managers at the corporate level combined with a flow of program and budget alternatives from the business and functional levels. The art of strategic management remained primarily associated with the military history. Jofre foreword the present report is the result of an ongoing study on the patterns and trends on both the theory and practice in the field of strategic management. The range of topics to which qualitative research has contributed in strategic management is wide and deep. Lastly, in regards to the strategic planning process, it is not a topdown or bottomup flow of ideas. It maximizes competitive advantage and minimizes competitive disadvantage. Strategic management falls into three main elements. The various models available, including those based on goals, issues, alignment, scenarios or selforganization, provide for different needs at different stages of a companys growth. Mental model or cognitive structure that must condition how the organization reflects on its business project. Strategic managementunit i strategy and process 9conceptual framework for strategic management, the concept of strategy and thestrategy formation process stakeholders in business vision, mission and purpose business definition, objectives and goals corporate governance and socialresponsibilitycase study. Building a foundation for your future 4 customer characteristics and purchasing hot buttons provide the information needed to decide whether the firm can and should attempt to gain or maintain a sustainable competitive advantage for marketing to a particular market segment lehmann and winer 1994.
Strategic management has a richer and larger content than strategic planning, which includes it. Under strategic management, the first step to be taken is to identify the objectives of the business concern. Topics include those such as innovation, top management, collaboration across firms, diversification, acquisitions, new ventures, internal organization, top management. Explain how these 3 activities would manifest themselves at walmart. Pdf strategic management is defined as the process of evaluation, planning, and. Essays on strategic management and quality assurance. Rothaermel combines quality and userfriendliness with rigor and relevance by synthesizing theory, empirical research, and practical applications in this new edition, which is designed to prepare students for the types of challenges they will face as managers in the globalized and turbulent business environment of the 21st century. Special thanks is extended to those who participated in the case studies by sharing the details of their strategies. It provides a framework or structure for decisionmaking by company leaders. Strategic management can be thought of in three categories. Daveni, dartmouth college giovanni battista dagnino, university of catania ken g. By strategic management we have in view the whole management of a company based on strategy, therefore it refers to the scientific management of the company, which always is founded on strategy nicolescu, 1996. Is there a credibility crisis in strategic management. Smith, university of maryland smj advising editor ed zajac, northwestern university special issue purpose.
This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. The cima e3 strategic management syllabus has a well balanced range of subjects that builds on your learning from the e1 and e2 papers. Topics include those such as innovation, top management, collaboration across firms, diversification, acquisitions, new ventures, internal organization, top. Hence a corporation organized under the basic principles of strategic management will find a smooth sailing due to effective decisionmaking. Chaneta department of business studies faculty of commerce university of zimbabwe abstract wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. In the corporate sector, its emergence started after the culmination of second world war. Therefore, given to these questions, the importance of strategic management should be further investigated. The theory and practice of strategy in business organizations s. Defining strategic management, planning outline l why strategic management. Strategic management full notes linkedin slideshare. The strategic management of projects1 expands this general concept to include aligning the direction of the organisations overall project delivery capability to the achievement of its strategic objectives. Strategic planning if done poorly results in more harm than good and this is the reason why the pitfalls of strategic planning and strategic management must be avoided. Their input, advice, and lessons learned, both successes and failures, have been incorporated into this document so that we may all apply better strategic management processes in our organizations. The subject is situational and so a script will never be enough but is meant to imbibe in student a sense and direction of tact of management.
Its goal is only to broaden and stimulate the discussion regarding a fruitful. Strategic management, linking the rigor of formal planning to vigorous operational execution, may prove to be the answer. Strategic management types in a stable and predictable environment, strategic planning can enable an organization to achieve, manage and maintain success. Strategic management is a modern approach to manage business enterprise successfully and to face future challenges. Strategic planning is a process of defining longterm objectives, identifying quantitative goals and objectives, developing strategies to achieve said objectives, and. It also does not aim to be comprehensive nor to provide a template. V kettunen j 2009 the collective process and memory of strategic management. Strategic management is concerned with taking decisions about major issues facing the organisations and ensuring that the strategy is put into effect. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Strategic management journal call for papers for a special issue the age of temporary advantage. The distinction between strategic thinking, strategic management and strategic planning 45 strategy in actionquick strategic thinking in unfavourable circumstances45 strategy in actionsony the disruptive innovator 50 principles for the successful use of strategy 61 finding the right strategic mix of entrepreneurial creativity and. Strategic management 2 a strategy is an action plan built to achieve a specific goal or set of goals within a definite time, while operating in an organizational framework.
In the corporate sector, its emergence started after. Its goal is only to broaden and stimulate the discussion regarding a fruitful application of strategic management in the public sector. Competitive or business strategy strategic business units sbus are a part of an organisation for which there is a distinct external market for goods or services how each. As such strategy provides for a better understanding of environment. A typical business firm should consider three types of strategies, which. These concepts are clearly explained by citing various examples. The history is filled with the examples where the strategic management of offensives and counter offensives paved the path for decisive victories. Pdf types of planning in strategic management david g. They are all rooted in an understanding that people, processes, and technology are all integral to the longterm success of a business or organization.
Strategic management tools and techniques and organizational. The essentials of strategic management the essentials of strategic management provides us with a short, concise explanation of the most important concepts and techniques in strategic management. The report focuses on three relevant issues regarding. Iii kettunen j 2007 the strategic evaluation of academic libraries, library hi tech, 253, 409421.
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