Define Strategic management and explain its various phases. Discuss how a team of managers can utilize strategic management to gain sustainable competitive advantage
Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that enable and organization to achieve its objective. (David, 2010) In order to create avenues for new and different opportunities managers within an organization must first determine the direction that they would like the firm to take, the mean buy which they will get there and the tools that will be employed to achieve this goal. Considering that businesses operate within the realm of limited resources, it is essential for a firm to ascertain their options and establish the ones that will yield the greatest returns ,strategic management facilitates this decision making process. (David, 2010) Strategic management is a process which involves phases; these include the formulation phase, implementation phase and the final, evaluation phase. The first step in strategy formulation is for the company to define its vision and misson.This is one of the most important steps as there must be consensus among the executives on what the firm wants to become. knowing the direction the firm is going and how it will get there is critical to the future success of the organization. Once the vision and mission are determined, the company can then create objectives and formulate strategies. (David, 2010) Now the firm must objectively weight the opportunities and threats present in the external market and match them with the organisations areas of perceived strengths and weaknesses in order the make decisions about the best use of their resources among all the available alternatives. The second phase of strategic management implements the plan of action that has been formulated, this is the most difficult part of the process. At this execution stage of the process, everyone...
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