41 Facts About Strategic management

Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans.

Strategic management is not static in nature; the models can include a feedback loop to monitor execution and to inform the next round of planning.

Strategic management involves the related concepts of strategic planning and strategic thinking.

Strategic management planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy.

Strategic management is often described as involving two major processes: formulation and implementation of strategy.

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Strategic management decisions are based on insight from the environmental assessment and are responses to strategic questions about how the organization will compete, such as:.

Strategic management examined the strategic process and concluded it was much more fluid and unpredictable than people had thought.

The second group, consisting of six schools, is more concerned with how strategic management is actually done, rather than prescribing optimal plans or positions.

Strategic management recommended eight areas where objectives should be set, such as market standing, innovation, productivity, physical and financial resources, worker performance and attitude, profitability, manager performance and development, and public responsibility.

Strategic management formalized the idea of matching the organization's internal factors with external environmental circumstances.

Strategic management developed a grid that compared strategies for market penetration, product development, market development and horizontal and vertical integration and diversification.

Strategic management felt that management could use the grid to systematically prepare for the future.

Ansoff wrote that strategic management had three parts: strategic planning; the skill of a firm in converting its plans into reality; and the skill of a firm in managing its own internal resistance to change.

In Porter's view, strategic management should be concerned with building and sustaining competitive advantage.

Strategic management wrote that organizations get into trouble when the assumptions representing the theory of the business no longer fit reality.

Strategic management used an example of retail department stores, where their theory of the business assumed that people who could afford to shop in department stores would do so.

Strategic management thinking involves the generation and application of unique business insights to opportunities intended to create competitive advantage for a firm or organization.

Strategic management planning is a means of administering the formulation and implementation of strategy.

Strategic management planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy.

Key component to strategic management which is often overlooked when planning is evaluation.

Therefore, a critique of strategic management is that it can overly constrain managerial discretion in a dynamic environment.

Strategic management lamented that successful strategies are imitated by firms that do not understand that for a strategy to work, it must account for the specifics of each situation.

Strategic management identifies four sources of discontinuity: new technologies, globalization, cultural pluralism and knowledge capital.

Strategic management illustrated how social and technical phenomena had shorter lifespans with each generation, and he questioned society's ability to cope with the resulting turmoil and accompanying anxiety.

Strategic management wrote that this is a trap that constrains our creativity, prevents us from exploring new ideas, and hampers our dealing with the full complexity of new issues.

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Strategic management developed a systematic method of dealing with change that involved looking at any new issue from three angles: technical and production, political and resource allocation, and corporate culture.

Strategic management's famous maxim is "Nothing fails like success" by which he means that what was a strength yesterday becomes the root of weakness today, We tend to depend on what worked yesterday and refuse to let go of what worked so well for us in the past.

Strategic management claimed that recognizing the patterns behind these value migrations is necessary if we wish to understand the world of chaotic change.

Strategic management called the approach to discovering the emerging markets for disruptive technologies agnostic marketing, i e, marketing under the implicit assumption that no one – not the company, not the customers – can know how or in what quantities a disruptive product can or will be used without the experience of using it.

Strategic management described strategy formation and implementation as an ongoing, never-ending, integrated process requiring continuous reassessment and reformation.

Strategic management claimed that strategy is partially deliberate and partially unplanned.

Strategic management wrote that good strategy has an underlying structure called a kernel.

Active strategic management required active information gathering and active problem solving.

Strategic management claimed in 1986 that one of the reasons for this is the complexity of strategic decisions and the resultant information uncertainty.

Strategic management alleged that prior to the widespread use of computer systems, managers, even at the most senior level, engaged in both strategic decisions and routine administration, but as computers facilitated routine processes, these activities were moved further down the hierarchy, leaving senior management free for strategic decision making.

Strategic management described leaders as visionaries who inspire, while managers care about process.

Strategic management claimed that the rise of managers was the main cause of the decline of American business in the 1970s and 1980s.

Strategic management described how fewer workers would do physical labor, and more would apply their minds.

Strategic management studied the effect that both had on workers, managers and organizational structures.

Strategic management largely confirmed Drucker's predictions about the importance of flexible decentralized structure, work teams, knowledge sharing and the knowledge worker's central role.

Strategic management identified four key traits of companies that had prospered for 50 years or more.