Essay on Strategic Plan For Strategic Management

705 Words Jul 11th, 2016 3 Pages
Strategic management is defined as “the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives.” (Pearce) A strategic plan is the outline that describes how a company will execute the strategy chosen. This management tool is organization-wide for the purpose of all focusing resources and time in the desired direction. (Olsen) This makes strategy important to an organization due to having outlined measurable goals which guides everyday decisions, evaluating progress, and the ability to change approaches to fit future needs when moving forward. (Gartenstein) A company’s strategic plan involves planning, directing, organizing, and controlling of a company’s strategy-related decisions and actions. (Pearce) Dimensions of strategic decisions are future oriented and they affect resources, long-term prosperity, the management team in place, multi-functional business consequences, and the external environment. (Pearce)
Strategic issues require top-management decisions due to involving multiple areas of a company’s operation such as accounting, marketing, and human relations. Perspective in understanding broad implications of decisions and power to authorize necessary resource allocations require top management. The strategic management process is composed of three tiers at different levels. The decision-making hierarchy of a firm is as follows: at the top there is the corporate level, in the middle there is…

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