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How strategic management helps in decision making
How strategic management helps in decision making
Relevance of strategic management and its benefits
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Strategic (Johnson & Scholes, 1997)
“Strategy is the direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and fulfil stakeholder expectations”(Johnson & Scholes, 1997). To Johnson and Scholes (1997), there are four main characteristics of strategic decision.
1) They are more inclined or accompanied with long term organisation decision.
2) Decisions are more concomitant with the scope of organisation activities. The strategic scope covers most of the biggest problems the organisation face. The word scope is defies the way how managers understand the boundaries of the organisation.
3) The decisions are ordinarily adapted to attain advantages for the organisation (e.g. competitiveness).
4) They usually have main resource implications for an organisation(Hambrick & Fredrickson, 2001). They can be seen as “stretching” an organisation’s possessions and proficiencies to create chances and get the most out of the resources (i.e. Financial resources (e.g. Investments), corporate culture, HR, etc.)
5) They are most likely to affect operational decisions, to “set waves of lesser decisions”.
Other authors described the strategic decision in other phases. Dean and Sharfman (1993), Lyles and Mitroff(1980) detailed about the comprehensiveness character of the strategic decisions. Comprehensiveness is defined as the mass of rationality which denotes to the amount of organisation’s attempt to be in-depth or wide-ranging integrated strategic decisions(Fredrickson & Mitchell, 1984).
Miller and Toulouse (1986) professed that the strategic decision is mainly focused on performance and on future plann...
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...he wilds of strategic management. New York: Free Press.
Nag, R., Hambrick, D. C., & Chen, M.-J. (2007). What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal, 28(9), 935–955. doi:10.1002/smj.615
Porter, M. (1998). Competetive strategy. New York.
Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic management journal, 12(S2), 95–117.
Robbins, S. P. (2012). Management (11th ed.). Boston: Prentice Hall.
Walsh, P. R. (2005). Dealing with the uncertainties of environmental change by adding scenario planning to the strategy reformulation equation. Management Decision, 43(1), 113–122.
Wirtz, J., & Johnston, R. (2003). Singapore Airlines: what it takes to sustain service excellence – a senior management perspective. Managing Service Quality, 13(1), 10–19. doi:10.1108/09604520310456672
Furthermore, there are four essential phases of strategic management also illustrate its features, and the corporation always evolves different phases to deal
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Rosenzweig (2013) states four fields of managerial decision making. As it is naturally a zero-sum game, participants in the game are highly correlated. Increasing advantages of our business will lessen the threats from our competitors (Moulin and Vial, 1978). Hence, Digby should emphasis on the third field to create competitive advantages through planning operational and non-operational strategy with rivals’ movements over business lifespan. And combined with the fourth field for core competencies in the long term. In practice, Digby released the new High End-Darwin for sustainable strategic
Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic Management: Text & Cases (6th Ed.). New York, NY: McGraw-Hill.
Pearce, J.A., & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and Global Competition. (13th Ed.). Boston, MA: McGraw-Hill/Irwin. ISBN-13: 9780078029295
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: planning for domestic & global competition (13th ed.). New York: McGraw-Hill/Irwin.
2. Thompson and Strickland (2002), Strategic Management: Concepts and Cases, 13th Edition, Chicago Irwin Publications.
Throughout the global economic environment the desire to out-perform the competition is always present. In every situation, the companies who do better are the ones with superior strategy (Rothaermel, 2013). Strategic management is therefore important in every company, no matter what industry or market they operate in; and as stated by M. Carpenter and G. Sanders, 2013, is described as "The process by which a firm manages the formulation and implementation of its strategy". Strategic management is a constant topic under discussion with different schools of theorists with different beliefs and attitudes which is described as "A tense array of disagreement" (Rees, 2012).
• Hitt, Michael A; Hokisson, Robert E.; Ireland, RD. Strategic Management. 6th Ed., Masson, Ohio: Souht. Wester 2005.
Witcher, B., and Chau, S. V., 2010. Strategic Management: Principles and Practice. Cengage Learning EMEA.
There are different types of strategic planning that are currently in use, since this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy whereby the objective of the strategy is defined in advance and the main elements are designed and develop...
3) consolidated with administration, strategic planning turns into a broadly utilised administration apparatus and is principally used to characterise the limits of the strategic administration and operational planning and administration forms. Steiner’s view states ‘Strategic management provides guidance, direction and boundaries for operational management’ (Steiner, 1979, pp. 3 – 5) Allen et al dive further regarding strategic planning, they contend that strategic planning is for the most part worried with the final consequence of the given task or occasion for this situation. ‘The strategic planning process consists of identifying where an organisation is, deciding where it should be positioned in the market place in order to maximise its chances of progressing its mission and creating strategies and tactics to achieve that position. In other words, the strategic planning process is concerned with end results and the means to achieve those results.’ (Allen et al., 2010, p. 187) This perspective is totally conflicting to what Steiner expresses, the way that it is concerning the last result instead of the plan inside what is creating the deciding result totally takes the importance of the words strategy and planning without end. A more genuine feeling of importance would be that of Steiner 's sentiment and is
Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Strategic management hinges upon answering three key questions:
Strategic management is a youthful discipline which originated in the 1950’s and 1960’s.This essay tracks the historical development of strategic management as a business discipline. From Scientific Management to Hypercompetition, the emergence of the strategic management can be tracked by the contribution of the influential scholars like Alfred Chandler, Ansoff, Michael Porter, Mintzberg and Richard D' Aveni. Although there were numerous scholars who played a role in the evolution of strategic management, but for the purpose of this essay, only above mentioned scholar’s contributions are presented. According to Rao (2008), the word strategy comes from the Greek word strategeia, which means the art or science of being a General. Successful