The strategic management process consists of three, four, or five steps depending upon how the different stages are labeled and grouped. 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 meaning and important concepts. In the last chapter we have already mentioned about corporate, strategic business unit strategies, and. Strategy the word strategy has so many meanings itself and all these meanings are useful, important and relevant to the people who. An intended strategy is the strategy that an organization hopes to execute. A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for more specific business unit goals and objec. Additionally, the secondary goal is to evaluate the implications for strategic information technology management. Types of strategies in strategic management bizfluent. The strategic management model benefits of strategic management 14 financial benefits 15 nonfinancial benefits 16 why some firms do no strategic planning 16 pitfalls in strategic planning 16 guidelines for effective strategic management 17 comparing business and military strategy 18 special note to students 19. A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for.
However, any organization is a system of gradients, not absolutes, and i strongly suspect that emergent strategies are greatly increasing in importance. Guidelines that indicate when each strategy may be an effective strategy to pursue. This strategy emphasizes the strengthening of a companys competitive position of products or services. Pdf the importance of strategic management to business. These strategic decisions cannot be made at a lower level without risking suboptimization of resources. When a strategic plan is created for a new venture, it is called a business plan. Strategic human resource management shrm is concerned with the relationship between hrm and strategic management in an organization. But all of the approaches include the same basic actions in the same order.
A firm using a multidomestic strategy sacrifices efficiency in favor of emphasizing responsiveness to local requirements within each of its markets. The strategic management model benefits of strategic management 14 financial benefits 15 nonfinancial benefits 16 why some firms do no strategic planning 16 pitfalls in strategic planning 16 guidelines for effective strategic management 17 comparing business and military strategy 18 special note to students 19 the cohesion case. They are all rooted in an understanding that people, processes, and technology are all integral to the longterm success of a business or organization. Guidelines are presented for determining when different types.
Therefore, intended strategies are often described in detail in the organizations strategic plan. Therefore, given to these questions, the importance of strategic management should be further investigated. Integration strategies sixteen types of strategies are defined and exemplified, including michael porters generic strategies. Strategy is a comprehensive plan for achieving competitive advantage. Rather than trying to force all of its americanmade shows on viewers around the globe, mtv customizes the programming that is shown on its channels within dozens of countries, including new zealand, portugal, pakistan. Given that topics relating to strategy and strategic management are highly relevant. Stages and types of strategy principles of management. Strategic management process meaning, its steps and. Strategic management is the management of an organizations resources to achieve its goals and objectives. Hence a corporation organized under the basic principles of strategic management will find a smooth sailing due to effective decisionmaking. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. Organizations use strategy at the corporate, business and functional. The final stage of the strategic management process is the strategy evaluation.
Mondejar antoniette renata marcellita sutiana class. It involves creating organizations which generate value even in turbulent environment over a sustained period of time. Special thanks is extended to those who participated in the case studies by sharing the details of their strategies. This plan is a rough strategy that intends to keep the organization on track. Pursuit of one type of strategy to the exclusion of others is not only foolish, but dangerous. Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy. Definition and components given the increasingly significant role of human resources in an organization, hrm has become strategic in nature. It is the duty of the managers to have sufficient knowhow about the problems and improper working of strategies. Types of strategy management control types of integration strategies integration strategy mondejarsutiana20 6. Strategic management process and its different stages.
Strategy refers to basic directional decisions, that is, to purposes and missions. It is an essential management process to strategize and prepare for different odds. Under strategic management, the first step to be taken is to identify the objectives of the business concern. It includes environmental scanning both external and internal strategy formulation strategic or long range planning, strategy implementation and evaluation and control. This kind of strategy is based on the theory of the. Strategic management different types business level strategies include the plans or methods a firm may use to conduct numerous functions in operating their business. Fourthly, the functional strategy is the types of strategies in strategic management. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. The methodology adopted in the survey is presented in the next section. What is strategic management definition and features. Strategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. Its characteristics, formulation, types and other details. Why stakeholder management is so critical in the strategic management process and how symbiosis can be achieved among an organizations stakeholders.
Nokias vision of the future, mission, goals, and strategies. Strategy is that which top management does that is of great importance to the organization. Strategic management different types tutorialspoint. As such strategy provides for a better understanding of environment.
Functional strategy refers to an approach that points up a particular functional area of an organization. Afterwards, the phenomenography research is described and explained. The next steps are to complete the planning work, publish, deploy. 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. Intended strategies are usually described in detail within an organizations strategic plan. Strategy refers to a general plan of action for achieving ones goals and objectives. The theory and practice of strategy in business organizations s. Defensive strategies in strategic management business study. It is a big picture view of the organisation and includes deciding in which, product or service markets to compete and in which, geographic regions to operate. Apr 29, 2016 different defensive strategies in strategic management april 29, 2016 by umar farooq organizations pursue defensive strategies when the circumstances require some sort of adjustments in the structure or functioning of the organization.
It is possible, therefore, to think of strategic management in three main types. Types of strategies strategic management swot analysis. Three types of strategic marketing strategies are regarded as defensive strategies. It is the strategy that an organization in the market hopes to execute. We must be able to walk and chew gum at the same time. Strategic management in essence is a fancy name given to. To manage for the present and continue to change so that the firm continues to prosper, in a. Wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. Mba strategic management lecture notes pdf download mba 3rd. Subsequently, the collected data are analysed and our model is tested. Introduction definition there are three schools of strategy. Business strategies are composed of competitive and cooperative strategies. It defines strategy and explains the key concepts in strategic management. This task of the management is better accomplished through strategy evaluation which provides needful information to the managers in this regard.
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 theories by richard scroggins capella university, united states. The one thing that all the various types of strategies have in common is that they are rooted in an understanding that people, processes, and technology are all integral to the success of an organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Mba strategic management lecture notes pdf download mba. An intended strategy deals with the intentions of the organization. The strategic role of resources and capabilities 10.
Strategic management involves the related concepts of strategic planning and strategic thinking. Introduction to strategic leadership 3 in strategic leadership, we will help you develop that bigpicture understanding of how to guide your actions. Strategic management is a broader term than strategy and is a process that includes top management s 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. Apr 12, 2016 the final stage of the strategic management process is the strategy evaluation. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Organizations pursue defensive strategies when the circumstances require some sort of adjustments in the structure or functioning of the organization. Using a handbook for strategic planning, the senior leadership team can complete most of the. But we will also encourage you to take responsibility and initiative for how you implement those strategies on a daytoday tactical level. Strategy consists of the important actions necessary to realize these directions.
The strategic management of the firm involves the coalignment of the internal capabilities of that firm with its external market environment. It sets down to achieve some objectives of a business unit by maximizing resource productivity. Strategic management involves setting objectives, analyzing the. Strategy in the simple sense of the word is a plan designed to achieve an objective and planning as we all know is the primary function of management that lays down the base for the entire business. Strategic management can be thought of in three categories. Strategic management is a continuous process that appraises the business and industries in which the. The existing literature on strategic management, whilst being difficult to reconcile in terms of the conflicting theories stated in the field, appears even further flawed in the sme context. The strategic management process and its three interrelated and principal activities. Corporate level strategy addresses the entire strategic scope of the firm. In strategic management of nokia the concept of strategic management is refers to 1 strategy formulation, 2 strategy implementation and 3 strategy evaluation. Vertical integration intensive strategies diversification strategies defensive strategies 1.
The last type of strategy regards the socalled ploy or tactic. Mondejar antoniette renata marcellita sutiana strategic management ba 211 august 20 mondejarsutiana20 2. Defensive strategies in strategic management business. A strategic plan made for a new firm is known as a business plan.
Strategy evaluation is the last step of the stages of strategic management process. The limitation of discussion now is discussed only on strategic formulation. How are strategies formulated and implemented in strategic management. Strategy making is involved with the identification of the ways that an organization can undertake to achieve the performance targets, weaken the competitors, achieve competitive advantage and ensure the longterm survival of the organization. Conceptually, the strategic management process for the firm is relatively straight forward compared to a complex subsector which is composed of many different types of firms. These strategic decisions cannot be made at a lower level without risking suboptimization of.
The report focuses on three relevant issues regarding. What is strategic management, and why is it important. 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. The three types of strategy there are three types of strategic planning that are essential to every firm. The business strategy encompasses all the actions and approaches for competing against the competitors and the ways management addresses various strategic issues. Types of strategies free download as powerpoint presentation. Research methodology strategies in strategic management 107 a good theory in strategic management must meet the criteria of being uniqueness, parsimony, conservation, generalizability, fecundity, internal consistency, empirical riskiness, and abstraction. Pdf strategies and strategic management in small business. 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.
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