Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; Assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." Strategic Management can also be defined as "the identification of the purpose of the organization and the plans and actions to achieve the purpose. It is that set of managerial decisions and actions that determine the long term performance of a business enterprise. It involves formulating and implementing strategies that will help in aligning the organization and its environment to achieve organizational goals.
Policy| Strategy| Tactics|
1. A policy is a principle or rule to guide decisions and achieve rational outcomes. 2. Short, Long, Medium term 3. What to do 4. Guidelines for desire results 5. Framework for Desire results 6. Policy is * Non- permanent * Flexible * Guideline * Generic * Provide parameters| 1. In military theory, strategy is "the utilization during both peace and war, of all of the nation's forces, through large scale, long-range planning and development, to ensure security and victory" 2. Medium Scale 3. How to do 4. Strategy provide * Macro Picture * Macro Return * Great Advantages * Fish EyedIn the 1980s business strategists realized that there was a vast knowledge base stretching back thousands of years that they had barely examined. They turned to military strategy for guidance. “Military strategy books such as The Art of War by Sun Tzu, On War became business classics. From Sun Tzu, they learned the tactical side of military strategy and specific tactical prescriptions.| 1. A tactic is a conceptual action implemented as one or more specific tasks. 2. Small Scale 3. Technical Skills 4. Negative/ positive 5. Tactics are * Frontline * Operational * Part..of strategy | Pest analysis
PEST analysis describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. He model has recently been further extended to STEEPLE adding Ethics and Demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological. They can determine barriers to entry, minimum efficient production level and...