MEANING ,FEATURES AND PROCESS OF STRATEGIC MANAGEMENT

u   MEANING ,FEATURES AND PROCESS OF STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT

       MEANING

·         THE WORD ‘STRATEGY IS DERIVED FROM THE GREEK WORD ‘ STRATEGOS’ MEANING A GENERALSHIP

·         STRATEGY IS THE DIRECTION AND SCOPE OF THE ORGANIZATION OVER LONG RUN.

·         WILLIAM F. GLUECK ,” STRATEGY IS A UNIFIED ,COMPREHENSIVE AND INTEGRATED PLAN RELATING THE STRATEGIC  ADVANTAGES OF THE FIRM TO CHALLENGES OF THE ENVIRONMENT. IT IS DESIGNED TO ENSURE THE BASIC OBJECTIVES OF THE ENTERPRISE ARE ACHIEVED.

·         STRATEGY IS A TACTICAL COURSE OF ACTION WHICH IS DESIGNED TO ACHIEVE LONG TERM OBJECTIVES. IT IS AN ART AND SCIENCE OF PLANNING AND MARSHALING OF RESOURCES FOR THEIR MOST EFFICIENT AND EFFECTIVE USE IN A CHANGING ENVIRONMENT.

·         ALFRED D CHANDLER,” STRATEGY IS THE BASIC LONG TERM GOALS AND OBJECTIVES OF AN ENTERPRISE AND ADOPTION OF THE COURSES OF ACTION AND ALLOCATION OF RESOURCES NECESSARY FOR CARRYING OUT OF THESE GOALS.

       ELEMENTS

1.    WHAT BUSINESS TO BE IN?

2.    WHAT MARKETS TO SERVE?

3.    WHICH NEEDS TO MEET?

4.    WHAT PRODUCTS TO OFFER?

5.    WHERE TO LOCATE FACILITIES?

       MEANING OF STRATEGIC MGMT

• STRATEGIC MGMT IS DEFINED AS THE DYNAMIC PROCESS OF FORMULATION,IMPLEMENTATION,EVALUATION AND CONTROL OF STRATEGIES TO REALIZE THE ORGANIZATION'S STRATEGIC INTENT.
•  AS PER CHANON,” STRATEGICMANGEMENT IS DEFINED AS THAT SET OF DECISIONS AND ACTIONS THAT RESULT IN FORMULATING OF STRATEGY AN ITS IMPLEMENTATION TO ACHIEVE THE OBJECTIVES OF THE CORPORATION.

       FEATURES OF STRATEGIC MANAGEMENT

1.    ORGANIZED AND SYSTEMATIC METHOD OF MANAGING ENTERPRISES. IT INVOLVE TWO PHASES: STRATEGIC PLANNING WHICH HELPS TO DETERMINATION OF ORGANIZATIONAL GOALS AND  SECOND PART IS DEVELOPMENT OF ACTION PLAN

2.    FUTURE ORIENTED

3.    DYNAMIC PROCESS

4.    LONG RANGE

             WHY WE REQUIRE STRATEGIC MANAGEMENT

1. IT IS NOT SIMPLE PROCESS BUT COMPLEX IN NATURE DUE TO THE FOLLOWING FACTORS:-
2. IT INVOLVE MAKING DECISIONS ABOUT FUTURE AND FUTURE IS UNCERTAIN.SO IT INVOLVES A HIGH DEGREE OF UNCERTAINTY
3. STRATEGIC MGMT NEEDS AN INTEGRATED APPROACH BUT MANAGERS IN DIFFERENT DEPARTMENTS HAVE DIFFERENT PRIORITIES
4. IT REQUIRE CHANGES IN ORGANIZATION CULTURE,LEADERSHIP,ORGANIZATION STRUCTURE,REWARD SYSTEM

             STRATEGIC MANAGEMENT PROCESS

• ESTABLISHING THE HIERARCHY OF STRATEGIC INTENT:- PURPOSE FOR WHICH THE ORGANIZATION IS SET UP. IT LAYS DOWN THE FOUNDATION

1. CREATING AND COMMUNICATING A VISION: DREAM OR FUTURE ASPIRATION OF THE ORGANIZATION
2. DESIGNING A MISSION STATEMENT:-ESSENTIAL PURPOSE OF THE ORGANIZATION.
3. DEFINING THE BUSINESS:
4. ADOPTING THE BUSINESS MODEL
5. SETTING THE OBJECTIVES

             FORMULATION OF STRATEGIES

a)    PERFORMING ENVIRONMENTAL APPRAISAL

b)    DOING ORGANIZATIONAL APPRAISAL

c)    FORMULATING CORPORATE LEVEL STRATEGIES: GRAND STRATEGIES GROWTH,STABILITY,RETRENCHMENT AND COMBINATION

d)    FORMULATING BUSINESS LEVEL STRATEGIES:_COST LEADERSHIP/DIFFERENTIATION/FOCUS

e)    FUNCTIONAL STRATEGIES

f)     UNDERSTANDING STRATEGIC ANALYSIS

g)    EXERCISING STRATEGIC CHOICE

h)    PREPARING STRATEGIC PLAN

             IMPLEMENTATION

a)    SETTING ANNUAL OBJECTIVES

b)    REVISING POLICIES TO MEET THE OBJECTIVES

c)    ALLOCATION OF RESOURCES

d)    CHANGING ORGANIZATION STRUCTURE

e)    MANAGING RESISTANCE TO CHANGE

f)     INTRODUCING NEW REWARD SYSTEM FOR PERFORMANCE

             PERFORMING STRATEGIC EVALUATION AND CONTROL

a)    PERFORMING STRATEGIC EVALUATION

b)    EXERCISING STRATEGIC CONTROL: PREMISES CONTROL,IMPLEMENTATION CONTROL

c)    REFORMULATING STRATEGIES