Strategic Management in Today’s Complex World
2011
Bilal Afsar
143
STRATEGIC MANAGEMENT IN TODAY’S COMPLEX WORLD
Bilal Afsar
Abstract
With the development of economy, original pure rational strategic management could not adapt to the complex and ever-changing environment now. The world is changing and becoming more and more unpredictable with each passing day. A kind of irrational strategic management is emerging quietly. This passage introduces the development of irrational strategic management and its function in strategic management, and discusses the way of irrational factor playing an active role in strategic management.
Afsar B. - Strategic Management in today’s complex world
144
Business Intelligence Journal
January
Strategic management and its predicament
Strategic management is combination of science and arts which increases an organization’s chances of success as it involves detailed planning of each and every variable of the organization that can help in the achievement of goals and objectives. Dr. Jagdish Sheth, a respected authority on marketing and strategic planning, provides the following framework for understanding strategic management: continually asking the question, “Are we doing the right thing?” It entails attention to the “big picture” and the willingness to adapt to changing circumstances, and consists of the following three elements: formulation of the organization’s future mission in light of changing external factors such as regulation, competition, technology, and customers development of a competitive strategy to achieve the mission creation of an organizational structure which will deploy resources to successfully carry out its competitive strategy. Strategic management is adaptive and keeps an organization relevant. In these dynamic times it is more likely to succeed than the traditional approach of “if it ain’t broke, don’t fix it.”Rationality has a deeprooted tradition in enterprise management. From Adam Smith, economics saw people as rational
Bilal Afsar
143
STRATEGIC MANAGEMENT IN TODAY’S COMPLEX WORLD
Bilal Afsar
Abstract
With the development of economy, original pure rational strategic management could not adapt to the complex and ever-changing environment now. The world is changing and becoming more and more unpredictable with each passing day. A kind of irrational strategic management is emerging quietly. This passage introduces the development of irrational strategic management and its function in strategic management, and discusses the way of irrational factor playing an active role in strategic management.
Afsar B. - Strategic Management in today’s complex world
144
Business Intelligence Journal
January
Strategic management and its predicament
Strategic management is combination of science and arts which increases an organization’s chances of success as it involves detailed planning of each and every variable of the organization that can help in the achievement of goals and objectives. Dr. Jagdish Sheth, a respected authority on marketing and strategic planning, provides the following framework for understanding strategic management: continually asking the question, “Are we doing the right thing?” It entails attention to the “big picture” and the willingness to adapt to changing circumstances, and consists of the following three elements: formulation of the organization’s future mission in light of changing external factors such as regulation, competition, technology, and customers development of a competitive strategy to achieve the mission creation of an organizational structure which will deploy resources to successfully carry out its competitive strategy. Strategic management is adaptive and keeps an organization relevant. In these dynamic times it is more likely to succeed than the traditional approach of “if it ain’t broke, don’t fix it.”Rationality has a deeprooted tradition in enterprise management. From Adam Smith, economics saw people as rational
References: Liu, Huawen & Tan, Liwen. (2008). New Trend of Overseas Strategy Management Study. Science & Technology Progress and Policy, January, 191-195. Qi, Xuerui. (2000). Scientific decisionmaking and irrational factors research. Master’s Degree Thesis, Guangxi Normal University, 143-147. Stephen Robins. (2004). Management. Beijing: China Renmin University Press, (Chapter5). Zhang, Xiaoyi. (2007). The role of irrational factors play in management. Master’s Degree Thesis, Heilongjiang University, 93-96. Zhao, Xianjin. (2008). The emerging of irrational pattern of enterprise’ strategic management. Scientific Management Research, April, 109-110. Conclusions This passage studies on the role of irrational factors in the process of strategic Afsar B. - Strategic Management in today’s complex world