Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources. It entails specifying the organization'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. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders.
Organizations seldom begin with a thorough strategic management process. Instead, they usually begin with basic financial planning or forecasting. Over time, they develop methods that are more closely associated with what we refer to as strategic management.
The resource - based view of the firm explains that an organization is a bundle of resources, which means that the most important role of a manager is that of acquiring, developing, managing, and discarding resources. According to this view, firms can gain competitive advantage through possessing superior resources.
Most of the resources that a firm can acquire or develop are directly linked to an organization’s stakeholders, which are groups and individuals who can significantly affect or are significantly affected by an organization’s activities. A stakeholder approach depicts the complicated nature of the management task.
Many trends and forces are leading firms into global markets at increasing rates, which have led to a high level of global economic interconnectedness. While the tools, techniques, and models of strategic management apply well to a global environment, there are differences between managing in domestic and international arenas.
Industry leadership is often associated with breaking out of traditional mind - sets and defying widely accepted industry practices. Strategic planning results in the creation of a plan. Strategic thinking involves intuition and creativity
Deliver the requirements package and support downstream development
Organizations seldom begin with a thorough strategic management process. Instead, they usually begin with basic financial planning or forecasting. Over time, they develop methods that are more closely associated with what we refer to as strategic management.
