Strategic Management take home final

STRATEGIC MANAGEMENT TAKE HOME FINAL

2007

Strategy is the unified , comprehensive and integrated plan that relates the strategic advantage of the firm to the challenges of the environment and is designed to ensure that basic objectives of the enterprise are achieved through proper implementation process . The concept of strategic management emphasizes on

Unified comprehensive and integrated plan

Strategic advantage related to challenge of environment

Proper implementation ensuring achievement of basic objectives

The purpose of strategic management is to determine and communicate a picture of enterprise through a system of

major objectives and policies Strategy is concerned with at unified direction and efficient allocation of organizations resources . A well made strategy guides managerial action and thought which provides an integrated approach for the organization and aids in meeting the challenges posed by the environment

The nature of strategic management is correlated by the following facts

It is a major course of action through which an organization relates itself to its environment particularly in meeting the objectives of the organization

It is s blend of external and internal factors . To meet the opportunities and threats provided by the external factors , internal factors are matched with them

It is the combination of actions aimed to meet a particular condition to solve certain problems or to achieve a desirable end . The actions are different for different situations

It is future oriented which are required for new situations which have not arisen before in the past

It provides overall framework for guiding enterprise thinking actions

It requires some systems and norms for its efficient adoption in any organization

Attributes of strategic management is characterized by four important aspects

1 . Long Term Objectives

Strategy is formulated keeping in mind the long term objectives of the organization . It is so because it emphasizes on long term growth and development . Strategy is future oriented and therefore concerned with the objectives which have a long term perspective . The objectives give directions for implementing a strategy

2 . Competitive Advantage

Whenever strategy is formulated , managers have to note the competitors of the organization . The environment has to be continuously monitored for forming a strategy . Strategy has to be made in a sense that the firm may have competitive advantage . It makes the organization committed enough to meet the external threats and profit from the environmental opportunities

3 . Vector

Strategy involves adoption of the course of action and allocation of resource for meeting the long term objectives . Amongst the various courses of action available , the , managers have to choose the one which utilizes the resources of the organization in the best possible manner and helps in the achievement of the organizational objectives . A series of decisions are taken and they are in the same direction

4 . Synergy

Once there is a series of decisions to accomplish the objectives in the same direction , there will be synergy . Strategies boost the prospects by providing energy

Example to illustrate the essence of strategy in a firm dealing with chemicals . The scope of the firm relating...