Examine The Nature And Functions Of Strategic Managem 190285

examine The Nature And Functions Of Strategic Managementapp

Examine the nature and functions of strategic management. Apply strategic management processes to analyze and improve organizational performance. Formulate strategies based on an external and environmental analysis. Apply the principles of strategic planning to construct strategic management plans for organizations. Evaluate the integration of strategic management functions used to achieve competitive advantage.

As the Director of Operations, the CEO of your company has tasked you with developing an onboarding toolkit about strategic management that new leaders can use as a playbook. The expectation is that you create a PowerPoint that contains six specific strategic management slides, each containing notes and discussion points, which answer the following: What is strategic management? How is strategic management developed to improve organizational performance? How is strategic management executed? How is strategic management measured? How is strategic management integrated to achieve a competitive advantage? How is strategic management controlled?

Paper For Above instruction

Strategic management is a comprehensive and ongoing process that organizations utilize to align their resources and actions with their mission, vision, and strategic goals. It involves the formulation, implementation, and evaluation of cross-functional decisions that enable an organization to achieve a competitive advantage in its industry. The essence of strategic management lies in its ability to help organizations adapt to changing environments, exploit opportunities, and mitigate risks, thereby ensuring their long-term sustainability and growth (Hitt, Ireland, & Hoskisson, 2020).

Developing strategic management involves a thorough analysis of both external and internal environments. External analysis includes assessing industry dynamics, competitors, market trends, and environmental factors through tools such as PESTEL and Porter’s Five Forces. Internal analysis focuses on core resources, capabilities, and organizational strengths and weaknesses, often utilizing the Resource-Based View (RBV) framework (Barney, 1991). Based on these analyses, organizations can formulate strategies that capitalize on strengths and opportunities while addressing weaknesses and threats, thereby improving performance.

Execution of strategic management is the process of translating formulated strategies into actionable plans and initiatives. This implementation phase requires clear communication, resource allocation, and the development of organizational structures and processes aligned with strategic objectives. Leadership plays a crucial role in ensuring commitment at all levels, fostering organizational change, and managing resistance. Effective execution also involves establishing metrics and performance management systems to monitor progress (Kaplan & Norton, 2001).

Measuring strategic management effectiveness relies on various performance indicators, including financial metrics such as ROI, sales growth, and profitability, as well as non-financial indicators like customer satisfaction, market share, and innovation. Balanced Scorecard is a popular tool that integrates financial and non-financial measures to assess how well strategies are being implemented and whether they deliver the desired outcomes (Kaplan & Norton, 1992). Continuous monitoring and feedback loops allow organizations to make data-driven adjustments to strategic plans.

Integrating strategic management to achieve a competitive advantage involves aligning organizational resources, capabilities, and activities to deliver unique value propositions that competitors cannot easily imitate. This integration is achieved through strategies such as differentiation, cost leadership, or focus strategies, supported by organizational culture, leadership commitment, and technological capabilities. Strategic fit and coherence across various functions and departments ensure that efforts are synergized toward a common goal (Porter, 1985).

Control in strategic management refers to the systematic process of monitoring implementation, evaluating results, and making necessary adjustments. It involves setting performance benchmarks, conducting regular reviews, and using corrective actions to stay aligned with strategic goals. Strategic control mechanisms include balanced scorecards, managerial audits, and strategic review meetings that facilitate accountability and continuous improvement (Simons, 1995). Proper control ensures that strategies remain relevant and effective in dynamic environments.

In conclusion, strategic management encompasses a sequence of interconnected processes—from environmental analysis to strategic formulation, implementation, measurement, integration, and control—all aimed at gaining and sustaining competitive advantage. Organizations that excel in strategic management are proactive, adaptable, and structured in their approach to navigating complex business landscapes, ultimately leading to superior performance and long-term success (Ireland, Hitt, & Hoskisson, 2018).

References

• Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Concepts and Cases. Cengage Learning.
• Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, 70(1), 71-79.
• Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization. Harvard Business School Press.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Simons, R. (1995). Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal. Harvard Business School Press.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2018). Strategic Management: Competitiveness and Globalization. Cengage Learning.