· Strategic Management The concept of strategic management is one that is highly important to organizations around the world (David, ). It involves taking a look at the top management of a company and the resources that management team is using on behalf of the company's owners and in order to show a specific level of performance Strategic management is the set of managerial decisions and actions that determines the long-run performance of a firm. The question however arises as to whether strategic management is an art or a science or that it is simply a mixture of luck and good blogger.comted Reading Time: 10 mins Strategic Management Essays. essay samples found. Literature Review of Definitions of Performance. In a simple way performance means “doing something successfully”? mainly by using the available resources. Performance can be elusive concept. It deals with the outcomes, results, and accomplishments achieved by a person, group or
Top Quality Essays - Strategic Management Sample [Management Essay]
Firms or companies today face a broad array of risks, problems and issues internal to them and external factors relative to increased international competition due to globalisation.
Strategic management is the set of managerial decisions and actions that determines the long-run performance of a firm. The question however arises as to whether strategic management is an art or a science or that it is simply a mixture of luck and good judgement. Firms or companies today face a broad array of risks, strategic management essays, problems and issues, be they strategic, operational, financial, customer, vendor, competitor, to name a few.
Moreover, concerns about increased international competition brought about by the rapid globalisation phenomenon abound not only in the US but also in Europe with the further expansion of the European Union and in Asia and Latin America due to increased economic integration in these regions.
Management experts therefore have argued time and again that firms or companies should respond to environmental changes, such as increased competition, by engaging in more systematic planning to anticipate and respond to changing and unforeseen events. Wheelen and Hunger define strategic management as that set of managerial decisions and actions that determines the long-run performance of a corporation or firm.
Accordingly, it includes environmental scanning both external and internalstrategy formulation strategic or long-range planningstrategy implementation, and evaluation and control. At the heart of this management approach is the strategic planning system Hoffman Spring Included in this system is the strategic management process.
The strategic management process, he explains, is the full set of commitments, decisions and actions required for a firm to achieve strategic competitiveness and earn above-average returns. With this information, the firm develops its vision and mission and formulates its strategy. To implement the strategy, the firm takes actions towards achieving strategic competitiveness and high returns. The sequence of the strategic management process can therefore be summarised as follows: effective strategic actions that take place in the context of carefully integrated strategy formulation and implementation actions result in desired strategic outcomes.
Hoffman Spring however stresses that the strategic management process should be dynamic considering that there is ever changing markets and competitive structures. As such, as firms face increased environmental changes e. increased globalisation, integrated markets firms benefit from strategic planning. Moreover, Hanson et al indicate that the strategic management process should be a rational approach that firms must use to achieve strategic competitiveness in the market.
The strategic management process should therefore be the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn profitable returns Hitt et al However, business strategies built upon single competencies may not provide the competitive position and financial performance a firm is seeking to achieve, as indicated by Olson He observes that the most successful firms in the current decade are learning to become highly flexible, operationally integrated, and delivering value to customers, partners, and alliances in revolutionary new ways that are not easily leap-frogged or imitated.
Blumentritt and Danis Summer observe that one key to successful strategic management is the ability to achieve fit or coherence among a set of competitive factors, both internal and extent, to the firm, in a manner that facilitates high performance. In such a case, strategic management essays, firms must not simply react to their environments but should dynamically interact with them via the strategic actions of top managers. In this case the formulation of a strategy should be scientific as it looks into data and information that are relevant to the firm.
Strategy, strategic management essays, according to Guttman and Hawkesis about the future and thus requires certain assumptions about upcoming product, market, technological, governmental, and competitive trends. Such assumptions are worthless, and maybe even deadly, unless they are tested and validated.
While formulating assumptions is a legitimate task for the top team, its members rarely posses the first-hand knowledge needed to confirm or deny the validity of those assumptions. Using this approach makes strategy formulation scientific. Nevertheless, effective industry analysis is a product of careful study and interpretation of data and information from multiple sources Hanson In this regard, a wealth of industry-specific data is available to be analysed.
In fact, research shows that in some industries, international variables are more important than domestic ones as determinants of strategic competitiveness. In fact, movement into international markets enhances the chances of success for new ventures as well as more established firms. Research therefore has revealed that firms that engage in strategic management strategic management essays outperform those that do not but when a firm fails to execute effectively, the culprit is often how and why of countless individual decisions and actions Chehade et al June Wheelen and Hunger observe that in a survey of nearly 50 corporations from various countries and industries, there are three highly rated benefits of strategic management, namely: 1 clearer sense of strategic vision for the form; 2 sharper focus on what is strategically important; and 3 improved understanding of a rapidly changing environment.
On occasion, fine-tuning the existing strategy is not enough and major strategy shifts are called, for, such as when a strategy is clearly failing and the company faces a financial crisis, when market conditions or buyer preferences change significantly and new opportunities arise, when competition do something unexpected, or when important technological breakthroughs occur. Some industries are more volatile than others. Adapting to new conditions and constantly learning what is well enough to continue and what needs to be improved is consequently a normal part of the strategy-making process and results in an evolving strategy, strategic management essays.
Since strategic strategic management essays covers a wide range of issues confronting management, strategic management essays, then it is necessary to organise these in some way, to see where they arise and how they are concerned Warren He suggests that a logical approach is to follow a more or less chronological sequence, as follows: 1 whether to take part; 2 choosing a strategy for taking part; 3 designing a likely path to success; 4 steering strategy through time; and 5 whether to extent or revise the strategy.
Given the concepts discussed regarding strategic management, the question now is: Is strategic management is an art or a science or is it a mixture of luck and judgement or a combination of everything? Based on the discussion of the literatures and studies reviewed, firstly, it can be said that strategic managements is a combination of both an art and a science.
It is an art because during the implementation phase of the plans made, managers are given the flexibility of implementation considering the fact that there are conditions during this phase that may intervene and thus require modification of the plans in the course of their execution. Moreover, the implementation of plans usually depends upon the character traits and style of the manager, strategic management essays. This is because each manager has his own style and character of executing plans.
The objective here is to carry out the plans and it does not matter how a manager will properly execute them. Because strategic management essays this different managers perform differently from each other since they are unique individuals with different traits.
Managers obviously need to improve strategy implementation activities, but the pace of these activities and the implementation itself has many problems along the way. In some instances, primary objectives are somewhat forgotten as the strategy moves into implementation, and the initial momentum is lost before the firm realises the expected strategic management essays. Traditional strategy implementation concepts overemphasise structural aspects, reducing the whole effort to an organisation exercise.
Strategic management, on the other hand, can also be considered a science since during the formulation phase, all aspects external and internal are examined which require both quantitative and qualitative data and extensive analysis. During the formulation process various assumptions are formulated and strategic management essays and alternatives are formulated to see the various outcomes based on the factors considered.
What is more crucial here is that it requires scientific method of studying the data and information before management decides on what is the best strategy to undertake given the assumptions formulated. Accordingly, successful strategies are based on a good understanding of the markets in which firms compete.
This understanding requires that they have accurate, timely information and means to analyse and strategic management essays this information to relevant decision makers.
Although the research process is a complex, time-consuming, and expensive activity, this does not mean that firms must remain ignorant and isolated about the world around it. It should be remembered that there are simplified approaches to obtain data and information.
Katsioloudes In such a case, therefore, relevant strategic inputs derived from analyses of the internal and external environments are necessary for effective strategy formulation and implementation, strategic management essays. In turn, effective strategic actions are a pre-requisite to achieving the desired outcomes of strategic competitiveness and above-average returns.
Hitt et al Just like an excellent tasting food however strategic management can be said to be actually a fusion of several ingredient, which when appropriately mixed together by management, strategic management essays, will achieve the objectives of the firm. In other words, strategic managements is a blending of right plans as a result of scientific research, positive attitude of managers to execute the plans including their excellent knowledge and skills of management; excellent judgement on the part of managers which is always carried out on the right-time and at the right strategic management essays flexibility of the plans for adjustment when crucial because of changing economic environment along the way during their execution; and luck or fate.
As Hitt et al indicate, effective strategic actions that take place in the context of carefully integrated strategy formulation and implementation actions result in desired strategic outcomes. When implanting a new strategy, strategic management essays, it is dangerous to ignore the other components because strategy implementation requires an integrative point of view.
Altogether, this integrative incorporation allows a manager to develop implementation activities that are realistic Raps June Decision-flow process, however, are the vehicles firms use to integrate results into coherent patters for developing, strategic management essays, implementing, and controlling decision making Raps June Moreover, without understanding the greater course of strategy, employees cannot contribute to an effective implementation.
What is necessary to help reach this goal is a higher degree of transparency in the decision-making process. To sum up the discussion, it is nice to remember what Thompson et al say about business strategic management essays as follows:. Strategic management process sets the long-run performance by undertaking environmental scanning, strategy implementation, and evaluation and control.
The process of strategic management is a mixture of several ingredients. It is a science because it requires scientific research when formulating plans for the firm. On the other hand, it can be stated that it is an art considering that when plans are implemented it varies relative to the characteristics and strategic management essays of managers, strategic management essays.
However, to be more effective in achieving the goals of the firm, other ingredients are necessary like excellent judgement of the manager, flexibility of the plans, and even luck. Business strategy therefore is not merely a result of one factor but a mixture of interrelated factors and that when mixed well by management can bring the firm to greater growth.
We Provide Essay, Dissertation and Thesis Strategic management essays Help. Skip to content, strategic management essays. Management Essay Subject : Strategic Management Topic : Is Business Strategy A Mixture Of Luck And Judgement, Opportunities And Design, Or More Of An Art Than A Science? Abstract Firms or companies today face a broad array of risks, problems and issues internal to them and external factors relative to increased international competition due to globalisation.
Introduction Firms or companies today face a broad array of risks, problems and issues, be they strategic management essays, operational, financial, customer, vendor, competitor, to name strategic management essays few. Hitt et al Just like an excellent tasting food however strategic management can be said to be actually a fusion of several ingredient, which when appropriately mixed together by management, will achieve the objectives of the firm.
To sum up the discussion, strategic management essays, it is nice to remember what Thompson et al say strategic management essays business strategy as follows: Crafting and executing strategy are core management functions.
Financial Markets. Top Quality Essays. Is Business Strategy A Mixture Of Luck And Strategic management essays, Opportunities And Design, Or More Of An Art Than A Science?
Strategy - Prof. Michael Porter (Harvard Business School)
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Introduction A mission statement gives the explanation of a business strategy. It serves to define what a company will do for its employees, owners, customers and the environment. If it is an international company, it also includes what it does for the world. It also defines the company goals, ethical values, culture and how decisions [ ] Strategic management is the set of managerial decisions and actions that determines the long-run performance of a firm. The question however arises as to whether strategic management is an art or a science or that it is simply a mixture of luck and good blogger.comted Reading Time: 10 mins · Strategic Management The concept of strategic management is one that is highly important to organizations around the world (David, ). It involves taking a look at the top management of a company and the resources that management team is using on behalf of the company's owners and in order to show a specific level of performance
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