Strategic Management

Strategic management

1. What is strategic management? Explain the strategic management process.

Strategic Management: process of analyzing the current situation, developing appropriate strategies, putting those strategies into action, and evaluating and changing those strategies as needed.

Strategic management process:  

1. Situational analysis :  scanning and evaluatring the current organizational context by looking at the new economy, the role of the steakholde, the dynamics of change, and the role of organizational culture and mission.
2. Stretegy Formula:  developing and then choicing appropriate strategies

• Functional Strategies: goal directed plans and actions of the organizationas functional areas.
• Competitive strategiers: goal directed actions and plans concerned with how an organization competes in a specific business or industry.
• Corporate Strategies: goal directed plans and actions concerned with the choices of what business es to bein and what to do woiht those businesses.

1. Strategy implementation: putting the various startegies uinto action
2. Stategy evaluation: involves evaluating botht he outcomes of the strategies and how they’ve been implemented if they don’t measure up to goals, then the strategy may need to be modified.

1. Who is involved with strategic management? explain their roles.

1. Board of Directors
2. Top management

Board of directors:

An elective group that represents a company’s shareholders. Have a legal obligation to represent the shareholders and protect their interest empowered to act on the shareholders behalf on overseeing the management of the company and plays a role in corporate governance.

Roles:

Review and approve strategic goals ansd plans

Review and approve organizations financial statndards and policies

Insure integrity of orgizational financial control and reporting systems

Approve and organizational philosophy

Monitor organizational performance and regularly review performance results.

Select, evaluate and compensate top level managers

Develop management succession plans

Review and approve capital expenditures

Monitpor relations with shareholders.

Top Management:

An organizations top management is usually the CEO, who works with a top management team to that includes other executive or senior managers (COO) and (CFO). Top managers are responsible for every decision and action of every organizational employee.