Strategic management is not a simple process; it is complex. A code of ethics heightens an organization’s reputation in society. Preparation for implementation precedes implementation, with the groundwork done well before. Also called distinctive competencies, core competencies are activities of the company where its position is superior to its competitors. /Img168 305 0 R /Img23 160 0 R In the face of changes, many excellent new ideas may become obsolete. /Img154 291 0 R The time-span of the strategic plan needs to be shorter, sometimes measured in months, in the organizations involved in e-business (especially in e-retailing). Description. /Img326 463 0 R It also involves the allocation of resources necessary to achieve the objectives. Corporate strategy, for example, of Uniliver may be acquiring the major tissue paper companies in India to become the unquestionable market leader. /Img392 529 0 R /Img402 539 0 R /F1 581 0 R /Img152 289 0 R /Img344 481 0 R One company may have a ‘policy of growth through the acquisition of other firms’ while another company may have a ‘policy of growing only by expanding present markets and products.’. /Img270 407 0 R Providing better guidance to the entire organization. /Img214 351 0 R /Img167 304 0 R /Img50 187 0 R /Img336 473 0 R The CEO must perform in many roles, requiring an almost holographic capability – as a change agent, communicator, the public face of the company; as a decider, facilitator, teacher, and mentor as well as a leader. /F3 587 0 R /Img75 212 0 R /Img190 327 0 R /Img411 548 0 R It may be pertinent to mention here that ‘strategic planning’ seeks increased responsiveness to markets and competition by trying to think strategically. The risk-bearing capacity of the organization’s managers. Submit Close. /Img49 186 0 R /Img17 154 0 R Financial Benefits:It results into financial benefits to the organizations in the form of increased profit even in the face of environmental threats. /Img247 384 0 R /Img94 231 0 R In the implementation phase, the resource allocation decisions are strategic managers allocate resources among current and future activities. /Img110 247 0 R /Img236 373 0 R /Img14 151 0 R /Img141 278 0 R The following are some of the ethical questions in business: Nowadays it is widely believed that organizations should develop a written code of ethics to guide the employees in taking care of ethics in their activities. Facilitating new learning. Organizations operate in a dynamic environment. The relationship between the environment and the organization is dynamic. Is the sale of cigarettes by a company ethical? /Img349 486 0 R Not only in these external issues, but changes are also taking place. In our view, all kind of personnel should be involved in performing the tasks of strategic management: Managers are responsible for detecting when new developments within or outside the company require a strategic response and when they don’t. /Img268 405 0 R Organizations should, therefore, build ethics into their cultures. /Img417 554 0 R /Img255 392 0 R Features and styling with more buyer appeal. /Img296 433 0 R They need to monitor the external situations closely to determine when to initiate changes in the existing strategy of the organization. Subsequently, this term was taken as a synonym of the present-day term ‘strategy. The functional strategy has already been discussed and therefore we avoid repetition here. /Img148 285 0 R It is materialization or execution of strategy through deployment of necessary resources and aligning the organizational structure, systems (e.g., reward systems, support systems) and processes with the selected strategy. Nature & Characteristics of Strategies 1. Leveraging cross-functional and divisional competencies is done during implementation. /Img80 217 0 R Thus, managers involve themselves in the strategic management process. /Img252 389 0 R Describe the benefits of good strategic management. /Type /Pages /Img9 146 0 R The demand for products and services was escalating. Thompson and Strickland have prepared a list of topics that organizations usually cover in codes of ethics: Organizations should develop procedures for enforcing ethical standards. /Img108 245 0 R According to Michael Porter, the undisputed guru of competitive strategy, “strategy is about the competitive position, about differentiating yourself in the eyes of the customer, about adding value through a mix of activities different from those used by competitors.”, In his book, he defines competitive strategy as “a combination of the ends for which the firm is striving and how it is seeking to get there.”. /Img285 422 0 R /Img173 310 0 R Ethical standards must be integrated into organizational policies and all actions of the organization. /Img335 472 0 R /Length 9817 Examples of the functional strategy include product strategy, marketing strategy, human resource strategy, and financial strategy. /Img21 158 0 R /XObject << /Img261 398 0 R /Img121 258 0 R /Img348 485 0 R /Img260 397 0 R /Img350 487 0 R /Img165 302 0 R /Img231 368 0 R (PDF) THE NATURE OF STRATEGIC MANAGEMENT I. These are then used to draw up functional plans, programs, and budgets. To formulate strategies, one has to know the objectives that are to be pursued & ... achieve corporate objectives The Strategic Management process is the way in which strategists determine objectives & make strategic decisions” H.L. The formulation phase has laid down the general direction through intent and strategy. /Img142 279 0 R /Img320 457 0 R /Img284 421 0 R /Img391 528 0 R Competition has become very fierce in most industries. /Img329 466 0 R Abstract and Figures Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. Facilitates strategic thinking enabling the exploration of environment opportunities and analysis of threats in a holistic manner. Sometimes functional strategy is called departmental strategy since each business-function is usually vested with a department. /Img363 500 0 R Policies are formulated to ensure clear guidance to managers and other employees throughout the organization. Being in a more convenient geographical location. /Img312 449 0 R Competitive advantage is the special edge that allows an organization to deal with market and environmental forces better than its competitors. /Img253 390 0 R Business strategies are composed of competitive and cooperative strategies. /Img65 202 0 R /Img405 542 0 R /Img6 143 0 R Strong measures for employee engagement are recommended, more so if radical changes in “doing” things are needed for increasing efficiency. Here ‘means’ refer to ways or actions and ‘ends’ refer to objectives. /Img193 330 0 R /Img330 467 0 R /Img96 233 0 R /Img374 511 0 R Policy guides a manager’s thinking in decision making; strategy implies the commitment of resources in a given direction. Strategic management is the process through which managers undertake efforts to ensure long-term adaptation of their organization to its environment. Organization-wide learning is initiated if the organization is adapting to global-level changes. The competitive strategy aims at gaining a competitive advantage in the marketplace against competitors. /Img237 374 0 R As we /Img186 323 0 R Strategic management therefore becomes a very important tool used by organizations like company X to manage the organization and her scarce resources to obtain her goals in the organi-zation.

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