Strategic management process meaning, steps and components. How do we explain some consistent growth and profitability of some businesses. Could it be that there are strategists whose business executives are following and which have a significant impact on their performance relative to their competitors. According to the strategic management model, a number of steps are taken to achieve the objectives of a company. The third component of strategic leadership is to develop human capital.
Strategic management tools and techniques and organizational performance. Strategic management is the process of employing that kind of largescale, objectiveoriented approach through the use of three major components. The three components of the strategic management process. Strategic management model refers to the pattern or mode of strategic management. Learning objectives x explore the concept of an organization x examine different organizational structures x examine the role of hrm x explore models of hrm x examine the. The figure is intended not as a prescription of what strategic management should be, but as a framework which readers can use to think through strategic problems. An evaluation term planning appeared inadequate and firms began to turn their mohammad ahsan ullah anjuman ara khanam abstract a strategic management model is the representation of the structure of strategic management in combination of strategies and management activities. Different strategic management models are chosen by various companies according to.
Basic concepts of strategic management professor robert r. Strategic management involves setting objectives, analyzing the. The notion of business model has been used by strategy scholars to refer to the logic of the firm, the way it operates and how it creates value for its stakeholders. In this chapter, we focus on the topic of strategic management. The theory and practice of strategy in business organizations. Structure, culture, resources missions, objectives, strategies, policies. Developing the strategic management model is important as it provides the basic framework for understanding how strategic management can be. Goalbased strategic planning is the reverse of issuebased. We present a conceptual framework to separate and relate business model and strategy. There are three major components in strategic management, namely, strategy formulation, strategy implementation and strategy evaluation and control as shown in figure 2. Strategic management meaning and important concepts.
Figures taken from london business schools masters in management 2010. Strategic planning is useful only if it becomes the basis for management action. Thompson and strickland strategic management model has developed to solve the drawbacks of porters five forces model of strategic management models. Learning about project management includes learning new terminology and key concepts in project management.
Strategic project management team leader seminars 10. Vision, mission, business model and strategic plan. The underlying theoretical concept is that environment and cultural orientation. Pdf strategic management model for academic libraries. Feb 06, 2012 basic model of strategic management alvin g. Specific planning challenges the assignment of responsibilities at the corporate, business, and functional levels for the formulation and implementation of strategic programs addressing each strategic thrust. Strategic management strategic analysis this is all about the analyzing the strength of businesses position and understanding the important external factors that may influence that position.
Strategic management process strategic management process dr i. Wiggins environmental scanning strategy formulation strategy implementation evaluation and control external. This article offers guidelines on how the hrm function should be linked to the company strategy in order to gain the desired competitive advantage, 2. Atkinsons 1984 flexible firm model was entitled manpower strategies of flexible. Formal planning processes were identified by searching for evidence of traditional strategic planning process components commonly cited in strategic planning literature goal setting, environmental scanning, employee participation, and plan implementation tactics. Establishing the hierarchy of strategic intent creating and communicating a vision. Findings from the czech republic afonina anna abstract the purpose of this study is to investigate the current level of strategic management tools and techniques utilization as well as to explore and identify the impact of management tools on or. Thompson and strickland strategic management model. Sep 01, 2015 the third component of strategic leadership is to develop human capital. Nov 21, 2018 approaching management with a longterm strategy in mind can increase a businesss chance of success.
Developing the strategic management model is important as it provides the basic framework for understanding how strategic management can be operationalised at the firm level. Sep 06, 2016 5 key components of a powerful strategic plan. Powerpoint, presentations, business, slides, diagrams, charts, slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Defining strategic management, planning outline l why strategic management. Next we examine several models of strategy formulation. Human capital, that is, people, their skills, abilities, and intellectual property, are an essential input into the development and maintenance of core competencies. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that. Strategic management model for academic libraries sciencedirect. Pdf strategic management basic concepts researchgate. Strategic management process may be simply defined as the process through which a company formulates its business strategy elements in strategic management process. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Strategic management consists of four basic elements. Their input, advice, and lessons learned, both successes and failures, have been incorporated into this document so that we may all apply better strategic management processes in our organizations.
Strategic management uses a largescale, goaloriented approach through the use of three major components. Approaching management with a longterm strategy in mind can increase a businesss chance of success. First we define components of strategic management and then discuss a model of the strategic management process. Aframeworkforstrategicinformationtechnologymanagement abstract thispaperdevelopsaframeworkforstrategicinformationtechnology management. Different strategic management models your business. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Chaneta department of business studies faculty of commerce university of zimbabwe abstract wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. Most important components of strategic management talentedge. Finally, we discuss the tools managers use to implement their strategic plans.
They have some specific mission towards which all efforts are directed. Basic model of strategic management linkedin slideshare. Special thanks is extended to those who participated in the case studies by sharing the details of their strategies. On the surface, this notion appears to be similar to that of strategy. The managers can use models of decisionmaking in their activity to be more effective. Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage.
After an issuesbased plan has been implemented and the major issues you identified are resolved, then your organization might consider shifting to a broader, more complex strategic management model. Thompson and strickland strategic management model has severed forces and it has developed for analyzing. About me adjunct lecturer at hks two decades experience in the nonprofit and philanthropic sector, designing and leading large global and national initiatives and organizations board experience on boards and advisory boards. Strategic management contents 1 introduction 7 2 the basis of strategy. In strategic management orianahelena negulescu1 abstract. Mba strategic management lecture notes pdf download mba. These components of your strategic plan may take time to work through, but they are the necessary foundations for building the plan out further. Thompson and strickland strategic management model has severed forces and it has developed for analyzing the industry, including competition within the industry. Comprehensive model of the strategic management process. Different strategic management models are chosen by various companies according to their conveniences. Pdf how do we explain some consistent growth and profitability of some businesses. If you continue browsing the site, you agree to the use of cookies on this website. Wiggins basic model of strategic management mgmt 4710 professor robert r. Components of an effective strategic planning system.
Want to get an insight what are the most important component of strategic management that helps you to become proactive in making strategy. Too often strategic plans simply sit on shelves or are submitted for purposes of securing capitalgrants, but at that point their life ends. Strategic management is the management of an organizations resources to achieve its goals and objectives. The strategic project management model spm explicates the important elements that are key for developing strategic leadership project management in a team. Strategic management process meaning, steps and components the strategic management process means defining the organizations strategy.
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. Contrary to the common one, the strategic decision is being made in a longer time and on a detailed basis. There are several elements that make up each component. The process of strategic analysis can be assisted by a number of tools. The second stage is achieved through the fulfilment of two components of the model.
The decisionmaking process represents an ongoing activity of managers. The influences on, and elements of, strategic management discussed above are summarised in the figure above. The main objective of strategic management is to provide a framework which guides. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.
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