Strategic Management Concepts

Study Notes

Strategic management combines "strategic," indicating critical importance, and "management," which encompasses planning, organizing, staffing, coordinating, leading, and controlling.
It aims to apply management functions to essential organizational areas for better performance and competitive advantage.
Key definitions:
- James M. Higgins: Focuses on managing the organization's mission and its relationship with the environment.
- John A. Pearce II & Richard B. Robinson, Jr.: Emphasizes decision-making that results in strategy formulation and implementation to meet organizational objectives.
- Garry D. Smith & Danny R. Arnold: Involves examining present and future environments to formulate and control decisions aimed at achieving objectives.
- Lester A. Digman: Describes it as a continuous process aligning the organization with changing environments.
- Lloyd L. Byars: Concerned with decision-making for future organizational direction.
- William F. Glueck: Involves a stream of decisions and actions aimed at developing effective strategies for achieving corporate goals.
- Alfred D. Chandlex: Focuses on long-term goals, course of action adoption, and resource allocation.

Identification: Evaluate the current direction of the company by understanding its goals, mission, and strategic direction.
Analysis: Conduct assessments including SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to solidify elements of the strategic plan.
Formation: Create a clear action plan linked to the established goals, with straightforward implementation guidelines for affected individuals.
Execution: Implement the strategic plan effectively across the organization.
Evaluation: Assess the outcomes of the strategic initiatives to ensure alignment with objectives and make necessary adjustments.