Strategic Management

strategic-management

Strategic Management Process

How Star Managers Realize a Grand Design

The Dynamics of Strategic Management

All organizations need a “big picture” about the direction. Where they are going and the way to get there which involves strategy, strategic management and strategic planning. Strategy is a large scale action plan. It decides an organization’s direction. Strategic management involves managers from all sections of an organization devising, materializing strategies and strategic goals.  Strategic planning involves setting the organization’s long term goals. It also includes the shaping ways to attain them.

Strategic management and strategic planning are very important for an organization. As they offer direction and drive. It endorse new ideas and create a sustainable competitive advantage. Sustainable competitive advantage is achieved, when an organization succeeds in getting ahead and staying ahead in four aspects 1) in being open to customers, 2) in   pioneering, 3) in quality and 4) in cogency.

Strategic positioning strives to get sustainable competitive advantage by retaining organization’s exclusive features. Three main principles aid in maintaining strategic positioning. These are, 1) strategy creating a special and significant position, 2) strategy requiring give and take in competing, and 3) strategy creating a ‘fit’ among an organization’s activities.

The Strategic Management Process

The strategic management process involves five steps and a feedback loop. Step 1 involves the setting up of a mission statement, which shows the organization’s aim and vision statement which explains the organization’s long-term direction and strategic aim. In step 2, the extensive mission and vision statements are converted into a grand strategy which elucidates the way to accomplish the organization’s mission. Step 3 involves strategy formulation, in which grand strategy is converted into more precise strategic plans, choosing the more suitable strategies among others and changing them to suit the organization’s needs. Step 4, the strategy implementation is actualization of strategic plans and step 5 is the checking of the implementation of the strategy and making improvements. If a problem arises, corrective action makes a feedback loop in which the managers return to the previous step and reassess policies, budgets, or personal statements.

Establishing the Grand Strategy

For developing the grand strategy, we need to gather data and make projections. For this purpose certain tools are required. First tool is competitive intelligence which involves gathering information about our competitors’ activities. The second tool is environmental scanning which requires watchful surveying of the organization’s internal and external environment to look for opportunities and threats. SWOT analysis is the method required for this scanning. Forecasting is third tool for devising grand strategy. It means formulating the vision or projection of the future. Trend analysis and contingency planning are two types of forecasting for strategic management.

 Formulating Strategy

 Strategy Formulation is the 3rd step in strategic management procedure. It utilizes multiple concepts like Poter’s five competitive forces; Poter’s four competitive strategies; diversification & synergy; and BCG matrix. Poter’s five competitive forces state that the company is faced with threats of new entrants; bargaining power of suppliers; bargaining power of buyers; threats of substitute products or services and rivalry among competitors. The Poter’s four competitive strategies are cost-leadership strategy, differentiation strategy, cost-focus strategy and focused-differentiation strategy. Diversification & synergy show the production policy of the company according to the market conditions for following a single-product strategy or diversification. The BCG matrix helps the management to determine and evaluate the success of business units on the basis of their growth and their share in the market.

Implementing & Controlling Strategy: Execution

Implementing & Controlling Strategy are the last processes of strategic control. According to Larry Bossidy and Ram Charan execution is the center most part of the company’s strategy, it utilizes questioning, analysis, and follow through to interconnect reality with strategy to align individuals with the company’s goals and achieve targeted goals. The three core processes of execution involve people, strategy and operations. Through linking people with strategy and operational plans the execution helps the top strategic management to control the outcome in pursuit of strategic vision.

Planning of Successful Management

Planning & Uncertainty

Planning can be described as charting up of goals and formulating a way to achieve the set targets for successful management. There are four main benefits that can be achieved from planning. One is being checking on the progress. Second being coordinating activities. Third being thinking about future. Fourth being able to cope for uncertain events. In case of uncertain event the organization usually follow one of the four responses that are to employ defenders, prospectors, analyzers and reactors for successful management. (more…)

Global Management

Globalization: The Collapse of Time & Distance

The world is now becoming a global village and it is time for e-commerce, which is now asking the world to focus on communications from transportation and avail the economies of scale by connecting the whole world through internet.

The World Wide Web has converted the world from number of countries to one big market where the sellers and buyers can connect through internet, thus creating a possibility where products produced will be cheaper and affordable to everyone however it also creates a disadvantage to the local labor which can be replaced internationally much cheaper on internet. (more…)

Management Theory

Management Theory: Essential Background for the Successful Manager

Management theory is applied to rise the organization’s output

Evolving Viewpoints: How We Got to Today’s Management Outlook

A rational approach followed in management styles is evidence-based management meaning implementing the principles which were proven true basing on evidence and bringing reasons in decision-making process. The two main perspectives in management are historic perspective and the contemporary perspective. In historic perspective there are three viewpoints including classical, behavioral and quantitative. In the contemporary perspective there are also three viewpoints including systems, contingency and quality management. The study of these perspective give us an understanding of present, a direction, source of new ideas, clues to the meaning of management decisions and outside ideas. (more…)

The Exceptional Manager: What You Do, How You Do It

Management: What It Is, What Its Benefits Are
Management can be defined as, an ability to pursue organizational goals with efficiency and effectiveness. The managers have a multiplier effect on the organization as the individuals in an organization are looking for direction and motivation from the manager which has a direct effect on their performance and attitude. Whether the organizations are big or small managers are always paid handsomely to retain their abilities inside the organization other than this manager’s experience makes him indispensable. (more…)

Developing Connections and Healing Children

This book provides a guideline to parenting for handling with the development of troubled adopted children and the issues concerning the development of a child. First chapter guides us through the theory of attachment and its development and the affects of your child’s history on development. Second chapter stresses on the idea of thinking of parents which affects their child perception as well. Third chapter focuses on details of setting up home environment for a child and gives practical examples of conversing with your child and make him understand what you do is for the benefit of his well being. Fourth chapter helps parent understand that they should look for the reasons behind their children actions so that they are in a better position to make corrections. Fifth chapter discusses the idea of following the principles of Theraplay to build a relationship with child. Sixth chapter explains the Neauro biological consequences of a child’s early neglect and abuse and some suggestions for raising a child with such concerns. Seventh chapter covers the study of sensory integration perspective, making the parents realize the feeling of having irregular thoughts always crowding your mind and then it focuses on handling situations like this in our life. (more…)

Review of a Movie-Scent of a Woman

Movie Review: Scent of a Woman

            This movie has touched the very heights of acting especially Al Pacino. In this movie, a college boy has to babysit a old blind man (Al Pacino) who is a retired army colonel. Al Pacino played the role of a grumpy old man but who grows on you as you get a chance to know him. As the daughter of Al Pacino lefts for holidays leaving his father (Al Pacino) with Charlie, Al Pacino packs his bags and leaves for his own journey taking Charlie with him. On this voyage Charlie learns many things about the colonel which no one knows and the colonel advices Charlie in his personal problems at school. This movie has much suspense moment which were beautifully filmed. I believe this movie is one of Al Pacino best movie and definitely worth watching. (more…)

Impact Of Terrorism On Economy of United States

Impact Of Terrorism On Economy of United States

The federal deficit in the fiscal year 2012 was $1,089 billion, which is continuously becoming a burden on the economy of United States since the country decided indulging in war. This war against terrorism started after the massive attacks launched by Al-Qaida against the innocent civilians of United States on 11th September, 2001. This war caused extra burden on the economy of united states, many sectors of the economy started failing like banking sector an manufacturing sector especially vehicles. Other than this, the unemployment rate touched its highest figure hence reducing the purchasing power of people. The non-monetary issues created by this war were a sense of insecurity especially in the countries where these militants were hiding. This war has highlighted the difference in religion to new heights, which had become a major source of unrest in the Muslim world. Many people have tried to diagnose the problem, but got afraid from the rejection by the citizens of United States. (more…)

Annoted Bibliography

War on Terrorism: Annotated Bibliography

U.S. Bureau of Economic Analysis, “National Income and Product Accounts Tables,” [http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1] (accessed 9 November 2012).

This is a site of U.S. Department of Commerce, here I can find all the data relating to the U.S. Economic Accounts, covering national, international, regional, industry and integrated accounts. This website has very useful resources like interactive tables covering present and past periods and access to research completed at BEA. The source of the data is valid as it is compiled by government agencies through surveys and data collected through financial institutions. I will apply this data in presenting an overall picture of the current financial situation and the one before the start of war against terror. (more…)

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