Essay on Strategic Management

3255 Words Dec 30th, 2015 14 Pages
Semester III

UNIT – I STRATEGY AND PROCESS
|Conceptual Framework for Strategic Management – Concept of Strategy and Strategy Formation Process – Stakeholders in Business – Vision, |
|Mission and Purpose – Business Definition – Objectives and Goals – Corporate Governance – Social Responsibility |

CONCEPTUAL FRAMEWORK FOR STRATEGIC MANAGEMENT
Strategic management deals with decision making and actions which determine an enterprise’s ability to excel survive or die by making the best use of a firm’s resources in a dynamic environment. The main purpose of study of strategic management is to examine why some organization succeed while others fail and yet others completely change.

Consider the following
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The top management is mainly responsible for providing a sense of direction and guiding future course of action for any firm. Strategic management deals with long-term decisions taken up by top management which gives overall direction to the organization. Strategic Management provides a cooperative, integrated and enthusiastic approach for tackling problems and realizing opportunities.

Conceptual Framework for Strategic Management: ➢ Strategic Advantage ➢ Organizational capability ➢ Competencies ➢ Synergistic Effects ➢ Strengths and weaknesses ➢ Organizational Resources ➢ Organizational behavior

THE CONCEPT OF STRATEGY AND THE STRATEGY FORMATION PROCESS
Concept of Strategy
The term strategy is derived from a Greek word strategy which means generalship. A plan or course of action or a set of decision rules making a pattern or creating a common thread.

Strategy is a framework through which an organization can assert its vital continuity whilst managing to adapt to the changing environment to gain competitive advantage.

According to Igor Ansoff (1984), “Strategic Management is a systematic approach to the major and increasingly important responsibility of general management to position and relate the firm to its environment in a way which will assure its continued success and make it secure from surprises”.

Strategy

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