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    Strategic

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    Julienne Cait
    The document discusses the nature and levels of strategic management, defining it according to different authors. It outlines the stages of strategic management as strategic formulation, implementation, and evaluation and control. It explains why organizations practice strategic management and the benefits it provides, including financial benefits like improved sales and profitability, and non-financial benefits like enhanced awareness and productivity.

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    Strategic

    Uploaded by

    Julienne Cait
    43 views2 pages
    The document discusses the nature and levels of strategic management, defining it according to different authors. It outlines the stages of strategic management as strategic formulation, implementation, and evaluation and control. It explains why organizations practice strategic management and the benefits it provides, including financial benefits like improved sales and profitability, and non-financial benefits like enhanced awareness and productivity.

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    The document discusses the nature and levels of strategic management, defining it according to different authors. It outlines the stages of strategic management as strategic formulation, implementation, and evaluation and control. It explains why organizations practice strategic management and the benefits it provides, including financial benefits like improved sales and profitability, and non-financial benefits like enhanced awareness and productivity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    43 views2 pages

    Strategic

    Uploaded by

    Julienne Cait
    The document discusses the nature and levels of strategic management, defining it according to different authors. It outlines the stages of strategic management as strategic formulation, implementation, and evaluation and control. It explains why organizations practice strategic management and the benefits it provides, including financial benefits like improved sales and profitability, and non-financial benefits like enhanced awareness and productivity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Chapter 1

    Nature of Strategic Management


    1. Capstone course of all management and business subjects
    a. Management
    b. Marketing
    c. Economics
    d. Financial management
    e. Human resource management
    f. Managerial accounting
    2. Gives preferential attention to planning
    3. Address the roles and needs of a top-level manager with substantial input and
    participation of managers at the middle and lower levels
    4. Adapting to change - the strategic management process is based on the belief that
    organizations should continually monitor internal and external events and trends so that
    timely changes can be made as needed

    Levels of Management
    Top Level (strategy) - consists of board of directors, chief executive or managing director
    Middle Level (tactics) - consists of managers and departmental managers
    Low Level (operations) - consists of supervisors, foreman, section officers, superintendent

    Strategic Management
    According to Fred David and Frost David
     The art and science of formulating, implementing, and evaluating cross-functional
    decisions that enable an organization to achieve its objectives
    According to Felina Young
     a continuous process of strategy creation. It involves strategic processes like strategic
    analysis and decision-making, strategy formulation and implementation, and strategy
    control with the primary objectives of achieving and maintaining better alignment of
    corporate policies, priorities, and success.
    According to Nick Aduana
     Continuous rational process of defining long-term direction of a company after critically
    evaluating the different competing forces surrounding and within it to gain competitive
    advantage.

    Stages of Strategic Management


    1. Strategic Formulation
     developing a vision and mission
     identifying an organization’s external opportunities and threats
     determining internal strengths and weaknesses
     establishing long-term objectives
     generating alternative strategies
     choosing particular strategies to pursue
    2. Strategic Implementation
     requires a firm to establish annual objectives, devise policies, motivate
    employees, and allocate resources so that formulated strategies can be executed
     often called the action stage
    3. Strategic Evaluation and Control
     Determining which strategies are not working well
     Three fundamental activities:
     reviewing external and internal factors that are the bases for current
    strategies
     measuring performance
     taking corrective actions

    Why do Strategic Management?


     It allows an organization to be more proactive than reactive in shaping its own future;
     It allows an organization to initiate and influence (rather than just respond to) activities—
    and thus to exert control over its own destiny.

    Benefits to a firm that does strategic planning

     Financial Benefits
     Businesses using strategic-management concepts show significant improvement
    in sales, profitability, and productivity compared to firms without systematic
    planning activities
     High-performing firms tend to do systematic planning to prepare for future
    fluctuations in their external and internal environments
     Non-financial Benefits
     Enhanced awareness of external threats
     Improved understanding of competitors’ strategies
     Increased employee productivity
     Reduced resistance to change
     Clearer understanding of performance–reward relationships

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