STRATEGY MANAGEMENT

According to Business Dictionary “the Strategy Management is the systematic analysis of the factors associated with customers and competitors – the external environment – and the organization itself – the internal environment – to provide the basis for rethinking the current management practices.  Its objective is to achieve better alignment of corporate policies and strategic priorities”.

In other words, “Strategy Management specifies the organization`s objectives, policy development, and the plans as to how to achieve these objectives; and allocation of resources to implement the plans.  This is the most crucial and important activity of the top management, i.e. the Chief Executive Officer (CEO) and his second line executive team.  The organization derives its direction from it.  The strategy of the organization must be commensurate with its resources, circumstances and objectives.  The Strategy Management involves matching the organization`s `strategic advantages to the business environment (both internal and external) of the organization”.

The organization objective is to put the organization into a position to attain the Mission Statement most effectively and efficiently.  A good Strategy Management should integrate an organization`s goals, policies, and actions (tactics) into a cohesive role.

What are the steps in Strategy Management?

• Defining business, developing both Vision and Mission Statements,
• Setting up organizational objectives,
• Formulating organization strategy to achieve objectives,
• Implementing and executing strategies,
• Evaluating performance, reviewing new developments and taking corrective measures.

Strategy Management Principle

The Board of Directors should critically appraise and approve the strategic action plans.  The Board rarely, if ever, participates directly in the strategic details.

Who performs the Strategy Management tasks?

• The CEO and other senior level officers,
• Heads or managers of subsidiary business units,
• Functional area managers within the subsidiary business units,
• Managers of major operating departments and geographic units.

Benefits of Strategy Management:

• Guides the organization to the objectives for which it is established,
• Reduces the management`s threshold to change,
• It is a basis for evaluation for competing budget request, allocating resources to strategy supportive, result oriented areas,
• Brings together all strategy related decisions of managers at all levels of the organization,
• Creation of proactive, rather than reactive, atmosphere,
• Improves long term performance of the organization.

Questions:

Define Strategy Management.

What are the various steps in Strategy Management?