Thursday, 12 December 2019

Unit 1: Introduction to Strategic Management


                         Unit 1: Introduction to Strategic Management  

Strategic or institutional management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organisation to achieve its long term objectives. It is a level of managerial activity under setting goals and over tactics.

It is the process of specifying the organisation's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs.

Strategic management provides overall direction to the enterprise and is closely related to the field of Organisation Studies. Although a sense of direction is important, it can also stifle creativity, especially if it is rigidly enforced. In an uncertain and ambiguous world, fluidity can be more important than a finely tuned strategic compass. When a strategy becomes internalized into a corporate culture, it can lead to group think.

It can also cause an organisation to define itself too narrowly. Even the most talented manager would no doubt agree that "comprehensive analysis is impossible" for complex problems.

Formulation and implementation of strategy must thus occur side-by-side rather than sequentially, because strategies are built on assumptions which, in the absence of perfect knowledge, will never be perfectly correct.

The essence of being "strategic" thus lies in a capacity for "intelligent trial-and error" rather than linear adherence to finally honed and detailed strategic plans.

Strategic management is a question of interpreting, and continuously reinterpreting, the possibilities presented by shifting circumstances for advancing an organisation's objectives.

Environmental Analysis: Evaluation of the possible or probable effects of external as well as internal forces and conditions on an organisation's survival and growth strategies.

Financial Benefits: profits associated with strategic management Multifunctional Consequences: having complex implications on most of the functions of the organisation Non-financial Benefits: intangible benefits associated with strategic management Non-Self Generative Decisions: decisions that are taken infrequently but promptly when needed at any point of time Plan: A set of intended actions, through which one expects to achieve a goal.

Strategic Choice: choice of course of action given the environment, mission and capabilities Strategic Management: stream of decisions and actions that lead to development of effective strategy Strategy: A plan of action designed to achieve a particular goal.

Tactic: A conceptual action taken under a well-defined strategy to achieve a specific objective.

No comments:

Post a comment