Strategic Management

Topics: Strategic management, Management, Balanced scorecard Pages: 5 (933 words) Published: April 16, 2013
Katherine Wilson
February 1, 2013
Dr. Kunze
Organization & Management

Chapter 5 Analysis: Strategizing

Main Purpose

The primary focus of this chapter was to place emphasis on strategic management and how to plan objectives in order to ensure all goals of the company are met. This relates directly with the previous chapter because the P-O-L-C framework is incorporated. The author begins by describing the term strategy. Strategy is a central part of the planning function in P-O-L-C framework. It is essential that during the development of a strategy that it includes choices that will help your organization gain a competitive advantage. The author emphasized the importance of incorporating strategy into management and planning. Strategic management reflects what a firm is doing to achieve its mission and vision.

Key Questions and Key Concepts

Strategic management processing gives a more specific definition of strategic management. It states that the strategic management process is the process by which a firm manages the formulation and implementation of its strategy. It’s also referred to as the coordinated means by which an organization achieves its goals and objectives. Planning and strategy formation sometimes is called business planning or strategic planning also. Strategy implementation tells managers how they should go about putting the desired strategy into action.

Strategically planning plays a very large role in the P-O-L-C framework. Strategy communicates how vision and mission will be achieved and which goals and objectives show that the organization is on the right to achieving them. There are two specific parts: corporate and the business strategy. The corporate strategy answers questions such as: What businesses should we be in? How does being in one business help us compete in our other businesses? The business strategy asks questions such as: How should we compete?

The two different types of strategies that were focused on were intended, realized, deliberate, and emergent. Intended strategy is a strategy that is conceived by the top management team. Rationality is limited and the intended strategy is the result of a process of negotiation, bargaining, and compromise, involving many individuals and groups within the organization. The realized strategy is the actual strategy that is implemented. The emergent strategy is the decisions that emerge from the complex processes in which individual managers interpret the intended strategy and adapt to changing external circumstances. The realized strategy is a consequence of deliberate and emerging factors. Ultimately, the best strategies come about when managers are able to balance the needs for design with being flexible enough to capitalize on the benefits of emergence.

Strategic focus is a common characteristic across successful organizations. Overall lower cost or cost leadership refers to the strategy where a firm’s competitive advantage is based on the fact that it can develop, manufacture, and distribute products more efficiently than competitors.

Differentiation refers to the strategy where competitive advantage is based on superior products or service. Strategy should be developed through internal analysis. The core competencies are resources and capabilities that serve as a source of a firm’s competitive advantage over rivals.

Strategy is also developed through external analysis through the six aspects of PESTEL. These aspects are the political aspect, economic, social, technical, environmental, and legal. The strategy diamond involves the organizations arenas, differentiators, and economic logic.

Chapter 6: Goals & Objectives

Main Purpose

Goals are outcome statements that define what an organization is trying to accomplish.

Objectives are very precise, time-based, measurable actions that support the completion of a

goal. Measures are the actual metrics used to gauge performance on objectives....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategic Management Accounting and Performance Measurement Essay
  • strategic management Essay
  • Implementation Strategic Controls and Contingency Plans Essay
  • Essay about Jetblue
  • Marketing Strategy –Strategic Position Assessment Essay
  • Strategic Reasoning Essay
  • Strategic Ppt Essay
  • Essay about Business Model And Strategic Plan Part II

Become a StudyMode Member

Sign Up - It's Free