Linda Ann Gonzales
March 7, 2012
Management Policy and Strategy: MT460-03
This project is about why it is important to apply the strategic management process to business and at the same time will be discussing the importance of strategy for business. This paper will continue to explain the concept of the strategic management process, and will discuss the importance of having a future oriented plan, the organization’s vision, mission, purpose, philosophy, or goals, and the strategic process as input for future decision making. The information gathered will be provided from the ebook, Strategic Management, 12th Edition, Authors, John A. Pearce, II, Villanova University & Richard B. Robinson, Jr., from the University of South Carolina. In addition other resource from the Internet will be used.
Why Strategy is Important to Business
Why Strategy is Important to Business
Strategic management begins with the company’s vision, mission, and goals. With these in the forefront of the decision making process, CEOs and higher-level managers or officer, and company executives develop, devise and create strategic plans for the long-term success of the firm. A strategy is a company’s game plan (Pearce & Robinson, 2011); it is a framework created and initiated at the start of a business used to clearly define company objectives for the overall present and future success of the company. Dobson, Starkey, & Richards (2004), in their book, “Strategic Management: Issues And Cases” state, “A well defined strategy integrates an organization’s major plans, objectives, policies and programmes and commitments into a cohesive whole” (Ch. 1). Top-level managers, such as CEOs, board of directors, and administrative Officers, are involved in the umbrella of the company’s strategic planning. Dobson et al. (2004) define management, “,,,in terms of its function as those activities that serve to ensure that the basic objectives of the enterprise, as set by the strategy, are achieved, and as a group of senior employees responsible for performing this function. “ In addition, the authors’ working definition of strategic management is: “All that is necessary to position the firm a way that will assure its long-term survival in a competitive environment. A strategy is an organization’s way of saying how it creates unique value and thus attracts the custom that is its lifeblood.” Strategic planning includes long-term business planning and internal activities and the external environment must be considered for an effective implementation of strategic plans. External environment covers many areas that companies must be concerned. For example, one area of concern in the external environment are the issues of the environment. Companies must consider how they will conduct their business activities to keep the environment safe and not induce dangerous toxics in the environment that might alter the life of the ecosystem due to a company’s productivity. The strategic management process
Although different Top-managers use different models for their strategic planning, the basic components of the models are similar (Dobson, et al., 2004). Therefore, the basic components of the strategic management process begin with the company mission. Main Components of the Strategic Management Process
Mission: Dobson, et al. (2004) put it precisely to the point on the importance of having a company having a strong sense of its mission in this statement, which in turn wraps into the strategy and management approach: “Our premise is that a firm needs a well defined sense of its mission, its unique place in its environment and scope and direction of growth. Such a sense of mission defines the firm’s strategy. A firm also needs an approach to management itself that will harness the internal energies of the organization to the realization of its mission (Ch. 1).” Top executives must frequently analyze...