Overview of Strategic Management:
Strategic management is a level of managerial activity below setting goals and above tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic consistency" between the organization and its environment or "strategic consistency." According to Adieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes the management team and possibly the Board of Directors and other stakeholders. "Strategic management is an on-going 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 organisation 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 organisational goals."
Concept of Strategic Implementation:
Strategy implementation is a process of activating the strategy. It is the sum total of all the activities and choice required for the execution of a strategy plan. It is the process by which strategies and policies are put into action through the development of budgets, programs, and procedures. Daniel McCarthy and others in their book ‘Business Policy & Strategy ‘define strategy implementation as: “Strategy implementation consists of securities resources, organising these resources and directing the use of these resources within the outside the organisation.”
Interrelationship between Strategy Formulation & Strategy Implementation: STRATEGY FORMULATION
| STRATEGY IMPLEMENTATION
Strategy Formulation is positioning forces before the action.
Strategy Implementation is managing forces during the actions.
Strategy Formulation is primarily an intellectual process.
Strategy Implementation focuses on efficiency.
Strategy Formulation requires good intuitive and analytical skills.
Strategy Implementation requires special motivation and leadership skills.
Strategy Formulation requires coordination among a few individuals.
Strategy Implantation requires combination among many individuals.
The formulation and implementation processes are intertwined. Two types of linkages exist between these two phases of strategic management. The forward linkages deal with the impact of the formulation on implementation while the backward linkages are concerned with the impact in the opposite direction. Issues in Strategy Implementation:
The differ issues involved in strategy Implementation is:
Strategies, by themselves do not lead to action. Strategies, therefore, have to be activated through implementation. *
Strategies should lead to plans. Plans result in different kinds of programmes. *
Programmes lead to the formulation of projects. It requires separate allocation of funds, and is to be completed within a set time schedules. *
Projects create the needed infrastructure for the day – to – day operations in an organization.
Implementation of strategies is not limited to formulation of plans, programmes, and...
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