Strategic Management is a simple two grand words to mention but a complex practice to adopt. In many companies, the CEO or the key management has always says that “we have to think strategically”. Despite of saying, preaching the whole organization in adopting Strategic Management practice, in reality they are not having one.
Strategic Management is not only a mind thinking process, imagine and implement. It has to start with awareness of the need and importance of Strategic Management. Without awareness, the intended process of Strategic Management that they wish to implement will be a short life span dreams and later wash off in a short period off time.
The second main steps are developing the vision and followed by mission statement. These are two different schools of thought but having a similar focal point to organization. It is proposed to those organization wish to adopt Strategic Management and strategic implementation would first produce a good vision and mission statement.
Having moved from there, the analysis would come in i.e. the external and internal analysis. Internal analysis is the evaluation of the internal resources such as manpower, equipments and financial capabilities. The core competencies, present strategy, also need to be evaluated and what is the value contributed to the company in terms of tangible and intangible rewards.
The external analysis is another crucial factor to be analyzed since the firms or organizations are very much linked with the external environment. Tools such as Porters 5 forces, Strategic Group mapping and KSF are important to assist any strategic planner or managers to adopt the Strategic Management.
After evaluating the external and internal factors, the competitive analysis on the macro environment and the market share analysis is the important sequence to be followed in ensuring the process is intact. Many scholars proposed BCG Matrix, GE Business Screen Matrix, Mc Kinsey 7S framework are good tools for this section of the process. Other scholars would not make the competitive analysis by not using Ansoff matrix but all this depend on the practitioner.
In many cases organization need to go beyond the competitive strategy at business level only. In this modern business world, they would proceed to corporate level strategy in being competitive that is merger, acquisition, strategic alliances or even outsourcing.
Being a practitioner of strategic management, the organization should not only ensure all the required analysis done but they need to build their resources strength and organizational capabilities. This will enhance the organization in meeting their challenges as what found in their earlier analysis. Besides having a good preparation for the execution of the plan or strategic implementation later the organization need to develop the monitoring and control for correction purpose.
According to Arthur A. Thomson Jr, A.J Strickland III and John E. Gamble, there are 10 commandments for crafting successful business strategies.
1. Always put top priority on crafting and executing strategic moves that enhance a firm’s competitive position for long-term and that serve to establish it as an industry leader.
Strategic Management is not only a mind thinking process, imagine and implement. It has to start with awareness of the need and importance of Strategic Management. Without awareness, the intended process of Strategic Management that they wish to implement will be a short life span dreams and later wash off in a short period off time.
The second main steps are developing the vision and followed by mission statement. These are two different schools of thought but having a similar focal point to organization. It is proposed to those organization wish to adopt Strategic Management and strategic implementation would first produce a good vision and mission statement.
Having moved from there, the analysis would come in i.e. the external and internal analysis. Internal analysis is the evaluation of the internal resources such as manpower, equipments and financial capabilities. The core competencies, present strategy, also need to be evaluated and what is the value contributed to the company in terms of tangible and intangible rewards.
The external analysis is another crucial factor to be analyzed since the firms or organizations are very much linked with the external environment. Tools such as Porters 5 forces, Strategic Group mapping and KSF are important to assist any strategic planner or managers to adopt the Strategic Management.
After evaluating the external and internal factors, the competitive analysis on the macro environment and the market share analysis is the important sequence to be followed in ensuring the process is intact. Many scholars proposed BCG Matrix, GE Business Screen Matrix, Mc Kinsey 7S framework are good tools for this section of the process. Other scholars would not make the competitive analysis by not using Ansoff matrix but all this depend on the practitioner.
In many cases organization need to go beyond the competitive strategy at business level only. In this modern business world, they would proceed to corporate level strategy in being competitive that is merger, acquisition, strategic alliances or even outsourcing.
Being a practitioner of strategic management, the organization should not only ensure all the required analysis done but they need to build their resources strength and organizational capabilities. This will enhance the organization in meeting their challenges as what found in their earlier analysis. Besides having a good preparation for the execution of the plan or strategic implementation later the organization need to develop the monitoring and control for correction purpose.
According to Arthur A. Thomson Jr, A.J Strickland III and John E. Gamble, there are 10 commandments for crafting successful business strategies.
1. Always put top priority on crafting and executing strategic moves that enhance a firm’s competitive position for long-term and that serve to establish it as an industry leader.
2. Be prompt in adapting and responding to changing market condition, unmet customer needs and buyer wishes.
3. Invest in creating sustainable competitive advantages.
4. Avoid strategies capable of succeeding only in best circumstances.
5. Don’t underestimate the reaction and commitment of rival firms.
6. Consider that attacking competitive weakness is usually profitable than attacking competitive strength.
7. Be judicious in cutting prices without an established cost advantage.
8. Employ bold strategic moves in pursuing differentiation strategies
9. Do not get “stuck back in the pack”.
10. Be aware that aggressive strategies moves to wrest crucial market share away from rivals often provoke aggressive retaliation.
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