The Nature of Strategic Management

Assalamualaikum

Hai, I’m back.. hehe.. this week we have learn about strategy. Talking about strategy, the strategy is a comprehensive plan for accomplishing an organization’s goals. Meanwhile, strategic management is a way of approaching business opportunities and challenges aimed at formulating and implementing effective strategies. There are three stage of strategies, which is

Strategy formulation

The set of processes involved in creating or determining the organization’s strategies. It focuses on the content of strategies in order to developing vision and mission.

Strategy Implementation

The method by which strategies are operationalized or executed within the organization. It focuses on the processes through which strategies are achieved. In other words, its requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed and is often called the action stage.

Strategy evaluation

It defined as reviewing external and internal factors that are the bases for current strategies, measuring performance, and taking corrective actions

This three activities occur at three hierarchical levels in a large organization: corporate, divisional or strategic business unit, and functional. It helps a firm function as a competitive team.