strategic management

(noun)

The art and science of formulating, implementing, and evaluating cross-functional decisions that will enable an organization to achieve its objectives.

Related Terms

Examples of strategic management in the following topics:

  • Strategic Management

    • Strategic management entails five steps: analysis, formation, goal setting, structure, and feedback.
    • Strategic management analyzes the major initiatives, involving resources and performance in external environments, that a company's top management takes on behalf of owners.
    • As strategic management is a large, complex, and ever-evolving endeavor, it is useful to divide it into a series of concrete steps to illustrate the process of strategic management.
    • Leaders allocate resources to specific projects and enact any necessary strategic partnerships.
    • Identify the five general steps that allow businesses to develop a strategic process

  • The Importance of Strategy

    • Strategic management is critical to organizational development as it aligns the mission and vision with operations.
    • Strategic management is critical to the development and expansion of all organizations.
    • The initial task in strategic management is to compile and disseminate the organization's vision and mission statement.
    • Strategic management is the art, science, and craft of formulating, implementing, and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.
    • Strategic management seeks to coordinate and integrate the activities of a company's various functional areas in order to achieve long-term organizational objectives.

  • Differences Between Strategic Planning at Small Versus Large Firms

    • Strategic management can depend on the size of an organization and the proclivity of change in its business environment.
    • Size is highly relevant to organizational strategy and structure, and understanding the influencing factors is important for management to elect optimal strategic plans.
    • MNEs (multinational enterprises) may employ a more structured strategic management model due to its size, scope of operations, and need to encompass stakeholder views and requirements.
    • Innovate ideas are primarily trial and error, and so instilling creativity into a strategic process is also a high-risk approach.
    • Apply the size of a firm to the basic strategic management theories

  • Planning a Project

    • Implementing a framework for generating a project-planning cycle, complete with strategic objectives, implementation methods, and assessment, is a primary responsibility of strategic managers.
    • This step-by-step process highlights each feasible stage in the project-management cycle.
    • By appropriately incorporating each stage of the model into the planning process, managers can effectively forecast the deliverable, and they can avoiding losing value by accurately assessing the margins that will be produced in a given strategic initiative.
    • As shown in the figure, there are five basic strategic management steps in the planning cycle.
    • Outline the five basic stages in the planning cycle as derived within the field of strategic management

  • Implementing Strategy

    • Strategic planning involves managing the implementation process, which translates plans into action.
    • The following stages constitute the strategic implementation process:
    • Allocating and managing sufficient resources (financial, personnel, operational support, time, technology support)
    • Strategy implementation also involves managing the overall process.
    • The strategic management process never ends.

  • Overview of Types of Strategic Plans

    • The broader overview of strategic plans, as well as the five subgroups within strategic planning, provide businesses with direction.
    • Strategic management is primarily concerned with the planning and execution processes that lead to the effective operations of a business.
    • Strategic management leverages strategic planning in order to design and execute a variety of plans specifically created to approach various facets of the business and competitive environment.
    • It is worth analyzing the broader overview of strategic plans, as well as the five subgroups within strategic planning that provide businesses with an outline of their strategic direction.
    • Long-range plans are those most closely related to the overall strategic-planning process.

  • Managerial Accounting

    • Management accounting is one of the most interesting and broad-minded applications of the accounting perspective.
    • There exists a strong relationship between the knowledge accounting delivers to managerial teams, and the strategic and tactical decisions made by management.
    • Managerial accounting creates additional documents used for internal, strategic decision-making.
    • Some simpler examples of common managerial accounting tasks include developing business metrics, cost-benefit analyses, IT cost transparency, life cycle cost analysis, strategic management advice, sales forecasting, geographically segmented reporting, and rate and volume analysis.
    • Integrate a knowledge of accounting with its impact on strategic decision-making

  • Introduction

    • understand three of the most important operations management practices: Total Quality Management, Supply Chain Management, and Just-in-Time/Lean Operations

  • Middle-Level Management

    • Middle management is the intermediate management level accountable to top management and responsible for leading lower level managers.
    • Middle-level managers can include general managers, branch managers, and department managers.
    • Because middle managers are more involved in the day-to-day workings of a company, they can provide valuable information to top managers that will help them improve the organization's performance using a broader, more strategic view.
    • Reporting performance statistics up the chain of command and, when applicable, recommending strategic changes
    • Because middle managers work with both top-level managers and first-level managers, middle managers tend to have excellent interpersonal skills relating to communication, motivation, and mentoring.

  • Strategic Business Units

    • A strategic business unit is a semi-autonomous corporate unit that focuses on a product offering and market segment.
    • Functional strategies include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies.
    • Many companies feel that a functional organizational structure is not an efficient way to organize activities so they have re-engineered according to processes or strategic business units (SBUs).
    • Managed as separate businesses, they are responsible to a parent corporation.
    • Diagram the role and functionality of a strategic business unit (SBU)