Today the most popular approach is called the Strategic Management Approach, as the approach to strategy has changed since 1995.
The Strategic Management Approach refers to the overall design of the organisation, which can be determined only when equal importance is given to the attainment of goals and to policy/ strategy.
The key issues for a manager following this approach are goal setting, strategy formulation, administration, and strategic control.
Strategic Management Approach has different levels, which includes Corporate Level Strategy, Business Unit Strategy and Functional Level Strategy.
Corporate Level Strategy
Here top management is in control and they decide what they want to achieve, with regards to the profitability, market standing or innovation of a corporation. There are two approaches to corporate level strategy: the Values-Based Approach and the Corporate Portfolio Approach . In the Values-Based Approach, the values or beliefs of managers and workers about how the firm should conduct business, are the key to setting long-term direction . The Corporate Portfolio Approach on the other hand evaluates each of the corporation's various business units with respect to the market place and its own internal make-up.
Large corporations has a number of business units, which are actually seperate organisations that it owns, but a strategic role is developed for each unit with the goal of improving overall performance. This is an analytical approach, guided by market opportunities and tends to be initiated and controlled by top management only.
Business Unit Strateqy
This is a strategy formulated to set the goals of a particular business that produces...