Strategic management

Strategic Management Framework

SWOT en

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Experience curve

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Folio Plot BCG Matrix Example

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Elements of Industry Structure

Michael Porter's Three Generic Strategies

Strategic management is the formulation and implementation of the major goals and initiatives taken by an organization's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.

Overview

Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization. It provides overall direction to the enterprise and involves specifying the organization's objectives, developing policies and plans to achieve these objectives, and then allocating resources to implement the plans.

Key Concepts

• Strategic planning: The process of defining a strategy, or direction, and making decisions on allocating resources to pursue this strategy.
• Competitive advantage: A condition or circumstance that puts a company in a favorable or superior business position.
• SWOT analysis: A framework for identifying and analyzing the internal and external factors that can have an impact on the viability of a project, product, place, or person.
• Porter's Five Forces: A model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths.
• Balanced scorecard: A strategy performance management tool that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

Process

The strategic management process consists of several stages: 1. Goal Setting: Defining the vision, mission, and objectives of the organization. 2. Analysis: Conducting a thorough analysis of the internal and external environments. 3. Strategy Formulation: Developing strategies based on the analysis. 4. Strategy Implementation: Allocating resources and executing the strategies. 5. Evaluation and Control: Monitoring performance and making necessary adjustments.

Importance

Strategic management is crucial for the long-term success of an organization. It helps in:

• Providing a sense of direction and outlining measurable goals.
• Making informed decisions.
• Enhancing operational efficiency.
• Increasing market share and profitability.
• Ensuring the organization is proactive rather than reactive.

Related Pages

• Business strategy
• Corporate strategy
• Management
• Leadership
• Organizational behavior
• Change management
• Project management

See Also

• Strategic planning
• SWOT analysis
• Porter's Five Forces
• Balanced scorecard
• Competitive advantage