Strategic management is an interesting concept that cannot be defined in one sentence or phrase. If you need to make it brief it can be defined as the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. True strategic management has various components; they include analysis, decisions (formulation), and actions (implementation). Analysis requires you to first establish strategic goals (Dess, Lumpkin, & Eisner, 2014). These goals include creating the mission and vision statements, and finally creating strategic goals for the organization. Doing so ensures that the company has a clear set of goals and is on the right tract. Next are decisions (formulation), they require asking the questions what industries should we compete in and how we should compete in these industries (Dess, Lumpkin, & Eisner, 2014). Doing so will allow you to plan your goals and grow your business. Last come actions (implementation), which requires allocating necessary resources and leading the organization in a direction to establish its goals.
Strategic management has three main goals but it also has four key attributes. The first of the four is to direct the organization towards its overall goals and objectives. Second is to include multiple stakeholders in decision-making. Third is the need to incorporation log-term and short-term objectives (Dess, Lumpkin, & Eisner, 2014). Last is the need to recognize the differences between efficiency and effectiveness. All four of these various attributes need to be used intermittently and consistently be switched around. These four key attributes of strategic management will allow you to run a company successfully.
Strategic management is an interesting topic that has many different attributes and facets. But in the end the main goal of strategic management is to run the company both effectively and efficiently. Following the guidelines and keeping true to the key attributes of strategic management will make sure that company will be successful (Dess, Lumpkin, & Eisner, 2014). But strategic management also requires competent managers who are ambidextrous. Strategic management gives its users a comparative advantage over competitors. It allows companies to surpass others.
2. Briefly discuss the three key activities in the strategic management process. Why is it important for managers to recognize the interdependent nature of these activities?
The three key activities in strategic management as I mentioned before are analysis, decisions (formulation), and actions (implementation) (Dess, Lumpkin, & Eisner, 2014). Performing all of these activities will allow you to successfully manage your company. Strategic management involves objectively looking at a company and defining its goals, allocation needed resources and implementing various plans. The three key activities cover all three of these important factors and much more.
The first of the key activities is