Strategic Management Unit 1 In your own words, describe what strategic managemen
ID: 421242 • Letter: S
Question
Strategic Management Unit 1
In your own words, describe what strategic management is. What is meant by strategy? Discuss the accuracy of the following statement: Formal strategic planning is irrelevant for companies competing in the high-tech industry because pace of change is so rapid that plans are routinely made obsolete by unforeseen events. What importance does strategic management’s play in organizations? What are stakeholders and why are they important to firms? What does it mean to say that the firm has relationships with its stakeholders?
150-200 words or more NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING
Explanation / Answer
strategic management can be defined as the set of decisions which is taken by the managers that impacts the result of the organization' competitive performance. it is the process of identification and illustration of strategies which is implemented by management in order to achieve super financial results in comparison with their rivals in the same industry. it put focus on long term planning and future direction of the organization. in this, there is the creation and execution of the major goals on which top level management is agreed. it is done on the basis of SWOT analysis of the company. before making a strategy, management should understand the basic strength, weaknesses, opportunities and threats of the organization. it presents the clear picture of business so that management can understand that what the business will face and what the business will have to do. on the basis of this information, the process of strategic management continues. strategic management believes that things do not happen randomly but things happen according to long term plans. strategic management is the skelton of overall management of organization and works like a key pillar of management. strategic management works not only on setting long term objectives but also it creates the strategy to attain that specified objectives and also implements that strategy in order to attain that goal and also measure whether that objective is to be attained or not.
Strategy can be defined as the set of actions which is taken by the managers to achieve one or more goals of the organization. it can also be defined as the direction of the company and its various components in order to attain the desired state of the organization in the future. it is the well defined road map of any organization. it fills the gap between ' where organization is' and 'where organization want to be'. the main objective of the strategy is to minimize the strengths of the competitors by maximizing the strength of organization.
Formal strategic planning is irrelevant for companies competing in the high-tech industry because pace of change is so rapid that plans are routinely made obsolete by unforeseen events.
statement is quite accurate in today' competitive business environment. the formal system is not appropriate for the high tech industry which operates in rapid changing environment because of unpredictable changes and a lot of time is needed to make a formal strategic plan. it can be restrictive where there is the rapidly changing environment. because it needs a large amount of analysis and information so it becomes cumbersome sometime. this may result in loss of opportunities. so the informal strategic plans are best fit to the high tech industry where there is the rapid change.
Importance of Strategic Management
1. strategic management improves the performance of organization. there is higher performance level of organization.
2. it is too much involved in managerial decision making process.
3. it helps in coordinating diverse organizational units to help them focus on the goals of the organization.
4. it helps managers to adapt business environment changes.
5. it enhances the problem prevention capabilities of managers.
6. it improves the understanding of the strategies of competitors.
7. it strenghens the brand management and improves stability.
Stakeholder is a person, group, organization or social society who have a stake or claim on the business or who own a share in the business. stake can be defined as the interest in the business activities. stakeholders can affect the business or can affected by the business or can both affected by the business or affects the business. stakeholders can be divided into two parts
1. internal stakeholders ( employees, board of directors, owners, executive managers, investors)
2. external stakeholders ( customers, suppliers, creditors, intermediaries, clients, communities and governments)
importance of stakeholders:-
1. if a company maintain long term realtionship with its stakeholders then then it helps business to retain its customers, employees, increase productivity, and also helps in maintaining a high level of trust with the consumers.
2. stakeholders plays advisory role as well as participatory role in the organization. they provide feedback during the development process which directly impact the success of business. it also helps to earn the loyality of a new stakeholder.
3. stakeholders provide positive as well as negative feedback . if business entity listens their feedback then company can avoid future problems and can increase stability by taking preventive measures.
4. stakeholders gives financial support to the business.
every firm has some basic goals which is necessary to attain. in the process of attaining these goals every firm would deal with the pressures arising from its stakeholders sometimes pressure arise from government socities, spmetimes from the employees, customers, creditors. firm cannot stand itself by ignoring their stakeholders. it has to achieve its goals by meeting the requirement of its stakeholder. so we can say that firm has a relationship with its stakeholders.