Report
Summary:
Strategic Management can be defined as “the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective.” it is an on-going process which is in existence throughout the life of organization. The purpose of strategic management is to explore and create new and different opportunities for tomorrow.
Strategic management process is consists of three stages: * Strategic Formulation:
Strategic formulation means a strategy formulate to execute the business activities. Strategy formulation includes developing:
. Vision and Mission (The target of the business)
. Strength and weakness (Strong points of business and also weaknesses)
. Opportunities and threats (These are related with external environment for the business)
Object
Tact
Budget
Procedure
Performance
& Evaluation
Strategic
Mission
Strategy formulation is also concerned with setting long term goals and objectives, generating alternative strategies to achieve that long term goals and choosing particular strategy to pursue.
* Strategy Implementation
Strategy implementation requires a firm to establish annual objectives, devise policies, motivating employees and allocate resources so that formulated strategies can be executed. Strategy implementation includes developing strategy supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information system and linking employee compensation to organizational performance.
Strategy implementation is often called the action stage of strategic management. Implementing means mobilizing employees and managers in order to put formulated strategies into action. It is often considered to be most difficult stage of strategic management. It requires personal discipline, commitment and sacrifice. Strategy formulated but not implemented serve no useful purpose. *
Strategic Management can be defined as “the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective.” it is an on-going process which is in existence throughout the life of organization. The purpose of strategic management is to explore and create new and different opportunities for tomorrow.
Strategic management process is consists of three stages: * Strategic Formulation:
Strategic formulation means a strategy formulate to execute the business activities. Strategy formulation includes developing:
. Vision and Mission (The target of the business)
. Strength and weakness (Strong points of business and also weaknesses)
. Opportunities and threats (These are related with external environment for the business)
Object
Tact
Budget
Procedure
Performance
& Evaluation
Strategic
Mission
Strategy formulation is also concerned with setting long term goals and objectives, generating alternative strategies to achieve that long term goals and choosing particular strategy to pursue.
* Strategy Implementation
Strategy implementation requires a firm to establish annual objectives, devise policies, motivating employees and allocate resources so that formulated strategies can be executed. Strategy implementation includes developing strategy supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information system and linking employee compensation to organizational performance.
Strategy implementation is often called the action stage of strategic management. Implementing means mobilizing employees and managers in order to put formulated strategies into action. It is often considered to be most difficult stage of strategic management. It requires personal discipline, commitment and sacrifice. Strategy formulated but not implemented serve no useful purpose. *