Strategic Managment

STRATEGIC MANAGEMENT

2007

Q1 What does the organization regard as the nature , scope and purpose of strategic management

Organization 's mission becomes the cornerstone for its strategy and is necessary for the organization to assess the process identifying the objectives of each functional area . Emphasises on the accomplishment of the organisational objectives , which leads forward to it strategy

Functional Area Objectives for Strategic Management 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

Elements of strategic management are arrived upon and implemented in the broad framework of a plan

A typical strategic management plan has the following components of the current marketing situation , i .e , `where we are or situation analysis Identification of problems and opportunities in the situation Definition of objectives of the strategic management , i .e , `where we want to be Designing the marketing strategy Developing the marketing programme Estimating the necessary appropriations , i .e . Budgeting , forecasting sales and estimating cost and profit contribution

Strategic management , like any other planning process is an iterative process and has to be done on a continuing basis . In other words , what is needed is constant monitoring , redefinition , adaptation , and re-evaluation of objectives and strategy , its implementation and control in an effort to obtain maximum payoff from ever-changing market situation

The points will basically relate to the market , product , competition distribution and macro-environment . Each one of these is analyzed to give a more detailed understanding of the type of data that will be generated

Market Situation : data on the target market served like the size and growth of the market , and customer needs , perceptions and buying behavior trends

Product Situation : data on sales , prices , contribution margins and net profits for each major product

Competitive Situation : data on major competitors in respect of their size , goals , market share , product quality , marketing strategies and other relevant characteristics those are likely to help in understanding and predicting their behavior

Distribution Situation...