The history of the evolution of strategic management can be traced back to 400 BC when the term ‘strategia’ was used in the Greek army to imply science, art, and quality of being efficient army general. Specifically, we can say that the primary activities of a manufacturing company include inbound logistics, operations/production, outbound logistics, marketing, and service. Caractéra-Neomédia, a Quebec-based printing and new-media company, retains clients by providing them with comprehensive content-management services and alternative publishing methods. Thus, managers involve themselves in the strategic management process. Since managers have to be involved in strategic management, they need to understand the concepts, issues, and processes related to strategic management. Is giving advertising for the promotion of cigarettes or wine or spurious drugs ethical? This course prepares you to think strategically in an age when companies like Apple, Google, and Microsoft have become more valuable (in market cap terms) than companies like Exxon. The following diagram illustrates the five important steps of strategic management … Corporate strategy generally affects all the business-units under its umbrella. The Model T manufactured by Ford Motor Company is different from today’s motor car but it was also made with a different perspective altogether – a perspective that placed the manufacturer at the center and not the customer! Strategy formulation entails making decisions about selecting the strategy to achieve the long-range objectives. A comprehensive guide to effective strategic management of health care organizations. Providing managers with a rationale for evaluating competing budget requests for investment capital and new employees. Implementation brings about changes in almost every aspect of the business. MBA in e-Business Strategic Management. The course correction is made possible sooner. Strategic management is the process of decision making and planning which leads to the development of an effective strategy to help achieve organizational objectives. Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. Business strategies are composed of competitive and cooperative strategies. The existence of a code of ethics or code of conduct makes an environment in organizations where all people try to make ethical conduct a way of life. Delineates, yet links the operational with the strategic among process systems and managers of organizations. Such a strategy describes the company’s overall direction in terms of its various businesses and product lines. Organizations exercise operational control as well as strategic control. A code of ethics is a written document that contains principles of conduct to be used in decision making. Other lower-level managers (strategy markers and implementers for the areas they supervise). The three phases are distinct in theory and in practice they overlap and iterate. Also called distinctive competencies, core competencies are activities of the company where its position is superior to its competitors. When defined this way, objectives are considered as part of strategy formulation. In order to recover part of its investment to develop a Web site, Revue Gestion offered Web hosting to other journals that were not close competitors. It puts forward the vision of management based on internal and external environments, capabilities, and the nature of customers of the organization. The organization’s responses to the changes that take place in the external environment are at multiple levels. Strategy implementation is concerned with putting the formulated-strategy into action. Depending on the industry, government financing may be an incentive for adopting e-business. Consultant support can be sought on different aspects such as a quality program if needed. A strategy is considered as a long-term plan that relates the strategic advantages of an organization to the challenges of the environment. The strategic management process means defining the organization’s strategy. In this process, the strategists determine objectives and make strategic decisions. Strategies Help Managers to plan properly by guiding them to make operational decisions. Because of the liberalization of trade and financial services, companies are becoming more and more globalized. For example, a company following a low-cost competitive strategy needs a production strategy that emphasizes reducing the cost of operations and also a human resource strategy that emphasizes retaining the lowest possible number of employees who are highly qualified to work for the organization. Strategic management involves strategic planning and implementation. This element is also involved with making decisions regarding setting short-range objectives, developing budgets and formulating functional/supporting strategies to achieve the ‘main strategy’. The primary activities are involved with the physical creation of a product, it’s distribution and marketing, and the after-sales service related to the product. if a company has a major policy of developing only new products that fit its marketing organization, it will avoid wasting energy and resources on new products that do not meet this test. In this process, the strategists determine objectives and make strategic decisions. Strategic management primarily deals with competitive strategy, although the functional strategy is not ignored. It is a general guide for action and that is why it is the most general form of standing plan. When developing their e-business strategic plan, managers must take into account the number and nature of external factors that are compatible with the adoption of e-business. The support activities are necessary for supporting the primary activities to take place. Strategy-focused objectivesetting is concerned with establishing long-range objectives for the organization to achieve the vision and mission. Sometimes functional strategy is called departmental strategy since each business-function is usually vested with a department. However, in reality, all managers at all levels need to participate in the process of strategic management. Strategic management is the management of an organization’s resources to achieve its goals and objectives. Withdrawal from retail before any significant losses was reported was done. Did the strategy entail an acceptable level of risk? In order to succeed in this new frontier, businesses need to manage key components of technology, cloud-based communities, and omnichannel communications. Particular mission statement, however, does not necessarily state-specific strategic objectives or operational strategies or tactics. Operational strategies or tactics mean the same things which are action plans designed to execute or implement strategies. They are then ready to make strategic decisions that seek to balance their company’s competencies with the business opportunities around them. Ethics play an important role in developing organizational philosophies. Changes are also occurring in the internal affairs of the business organizations in terms of the high turnover of employees, the loss of highly trained and skilled technical people, etc. Business organizations could meet those challenges posed by the demands of the external environment by initiating forecast-based planning and command and control-based internal processes. Polar Plastic knew that it would be very difficult to pay off the $30,000 cost of the system over the short term. It is the capacity to see interrelationships in the web of disjointed information. They need to monitor the external situations closely to determine when to initiate changes in the existing strategy of the organization. On the other hand, strategic management seeks competitive advantage and sustainable market growth by effectively managing all resources of the organization. The following are some of the ethical questions in business: Nowadays it is widely believed that organizations should develop a written code of ethics to guide the employees in taking care of ethics in their activities. The selection of an e-business strategy requires solid knowledge of how e-business can create economic value for the firm. The changes in the external environment may be revolutionary or evolutionary for example technology that enables the convergence of music and the Internet on one device has been far more revolutionary than the technological changes that have taken place in steel manufacturing technology during the same period. Colibri Tours chose to develop a Web site in order to reach clients directly rather than through intermediaries. Thompson and Strickland have prepared a list of topics that organizations usually cover in codes of ethics: Organizations should develop procedures for enforcing ethical standards. Strategic management is not a very old phenomenon in the corporate world. Some of the tools used in resource allocation are BCG matrix, GE Matrix, and Experience curve. Some improved their Web site functionalities every year; others on a two or three-year schedule. Since a competitive strategy is more than an idea and also it is about making that idea work, the CEO must play a significant role in strategy formulation. There is no simple answer to this question, nor is there a magic formula for success. The strategic management process entails several pertinent issues that need clarification for better understanding. This includes general principles and methods, as well as specific techniques. The formulation begins with asking very fundamental questions: The information asymmetry, while formulating corporate strategy, makes the moderating role of strategic thinking important. 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