Strategic Management

Strategic Management is the art and science of formulating, implementing and evaluating cross functional decisions that enables an organization to achieve its objectives. Business Training in Kenya has more articles

Classification of Strategic Management

Strategic Management is classified into three stages that is;

·         Strategic formulation,

·         Strategic implementation,

·         Strategic evaluation.

               

Strategic formulating

This is the first step of Strategic Management. It  includes developing a business mission, identifying an organization external opportunities and threats determining internal strength and weaknesses, establishing long term objectives, generating alternative strategies and choosing a particular strategy to pursue.

·         Mission which identifies the scoop of an organization operation in product and market turns.

·         External opportunities and threats are factors beyond the control of an organization like economic, social, political, technological and competitive trends.

·         Internal strengths and weakness are controllable activities within an organization. They include information, operations, research and development, marketing and finances.

·         Long term objectives should be challenging, measurable, achievable, reasonable and clear.

·         Strategy is the means by which long term objectives will be achieved. They include geographical expansion, product development, market penetration, diversification, retrenchments, acquisitions, joint ventures.

Strategic implementation

Strategic implementation is another step of Strategic Management. This requires an organization to establish annual objectives, policies, resource allocation so that strategies can be executed. This is an action stage. It involves formulating the following;

·         Objective should be established at the cooperate level and functional level in large organizations.

·         Policies are a guide to decision making and repetitive or recurrent situations.

·         Resource allocation is a central management activity that allows for strategy, implementation or execution. It enables resources to be allocated according to priorities, established by annual objectives.

Strategic evaluation

Strategic evaluation is the last but not least step of Strategic Management. This monitors the results of formulation and implementation of activities. It includes measuring individual and organization performance and taking corrective actions when necessary. All strategies are subject to future modification because external and internal factors are constantly changing. The three fundamental strategy evaluation activities are;

·         Reviewing external and internal factors that are the basis for carrying strategies.

·         Measuring performance of done work.

·         Taking corrective action when needed.

Conclusion on Strategic Management

Strategy formulation implementation and evaluation activities occur in three levels of management, corporate levels, strategic business, and functional levels thus they are of great importance for every organization.