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Strategic Management - An Introduction

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. An organization is said to have competitive advantage if its profitability is

higher than the average profitability for all companies in its industry.

Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result

of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational

environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats),

i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities

from the business environment and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable as

well as unfeasible

contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by

formulating and implementing appropriate strategies, they can attain sustainable competitive advantage.

Strategic Management is a way in which strategists set the objectives and proceed about attaining them. It deals

with making and implementing decisions about future direction of an organization. It helps us to identify the

direction in which an organization is moving.

Strategic management is a continuous process that evaluates and controls the business and the industries in

which an organization is involved; evaluates its competitors and sets goals and strategies to meet all existing and

potential competitors; and then reevaluates strategies on a regular basis to determine how it has been

implemented and whether it was successful or does it needs replacement.

Strategic Management gives a broader perspective to the employees of an organization and they can better

understand how their job fits into the entire organizational plan and how it is co-related to other organizational

members. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving

business objectives. The employees become more trustworthy, more committed and more satisfied as they can

co-relate themselves very well with each organizational task. They can understand the reaction of environmental

changes on the organization and the probable response of the organization with the help of strategic

management. Thus the employees can judge the impact of such changes on their own job and can effectively

face the changes. The managers and employees must do appropriate things in appropriate manner. They need

to be both effective as well as efficient.

One of the major role of strategic management is to incorporate various functional areas of the organization

completely, as well as, to ensure these functional areas harmonize and get together well. Another role of

strategic management is to keep a continuous eye on the goals and objectives of the organization.

Following are the important concepts of Strategic Management:

Strategy - Definition and Features

Components of a Strategy Statement

Strategic Management Process

Environmental Scanning

Strategy Formulation

Strategy Implementation

Strategy Formulation vs Implementation

Strategy Evaluation

Strategic Decisions

Business Policy

BCG Matrix

SWOT Analysis

Competitor Analysis

Porter’s Five Forces Model

Strategic Leadership

Corporate Governance

Business Ethics

Core Competencies

Components of Strategy Management

The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It gives the firm a clear

sense of direction and a blueprint for the firm’s activities for the upcoming years. The main constituents of a strategic statement

are as follows:

1. Strategic Intent

2. An organization’s strategic intent is the purpose that it exists and why it will continue to exist, providing it maintains a

competitive advantage. Strategic intent gives a picture about what an organization must get into immediately in order to

achieve the company’s vision. It motivates the people. It clarifies the vision of the vision of the company. Strategic intent

helps management to emphasize and concentrate on the priorities. Strategic intent is, nothing but, the influencing of an

organization’s resource potential and core competencies to achieve what at first may seem to be unachievable goals in

the competitive environment. A well expressed strategic intent should guide/steer the development of strategic intent or

the setting of goals and objectives that require that all of organization’s competencies be controlled to maximum value.

Strategic intent includes directing organization’s attention on the need of winning; inspiring people by

telling them that the targets are valuable; encouraging individual and team participation as well as

contribution; and utilizing intent to direct allocation of resources. Strategic intent differs from strategic fit

in a way that while strategic fit deals with harmonizing available resources and potentials to the external

environment, strategic intent emphasizes on building new resources and potentials so as to create and

exploit future opportunities.

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Strategic Management - An Introduction 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. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage. Strategic Management is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an orga ...
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