"Strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates."
This subfield focuses on the process of formulating and implementing strategies to achieve an organization's goals.
Mission, Vision, and Values: Understanding the purpose, goals, and guiding principles of the organization.
SWOT Analysis: Evaluating an organization's strengths, weaknesses, opportunities, and threats.
Environmental Scanning: Examining factors outside the organization that may impact its operations, such as economic trends, technological advancements, and regulatory changes.
Industry Analysis: Studying the competitive landscape of the industry in which the organization operates, including market trends and competitor behavior.
Competitive Advantage: Identifying and developing unique qualities or resources that give an organization an edge over its competitors.
Resource Allocation: Prioritizing the allocation of an organization's resources (e.g., financial, human, material) to achieve its strategic goals.
Strategic Planning: Developing short-term and long-term plans that align with the organization's overall strategy.
Corporate Governance: Establishing internal controls and procedures to ensure ethical behavior and accountability within an organization.
Organizational Structure: Defining the roles, responsibilities, and relationships between departments, teams, and individuals within an organization.
Change Management: Planning and implementing organizational changes required to achieve strategic goals while minimizing disruption and resistance.
Innovation Management: Nurturing and fostering the development of new ideas and processes to enhance or create competitive advantages.
Business Ethics: Embedding ethical principles into the organization's culture and decision-making processes.
Performance Measurement: Establishing metrics and systems to evaluate the effectiveness of the organization's strategic plans and initiatives.
Leadership and Management: Developing and deploying leadership and management strategies that support the organization's goals.
International/Global Strategy: Developing strategies to expand and operate in different regions and countries.
Corporate-level strategy: This type of strategy is focused on the overall direction and scope of the entire organization. It involves decisions regarding diversification, mergers, and acquisitions.
Business-level strategy: This type of strategy is focused on the organization’s specific businesses and how they compete in their particular markets. It involves decisions regarding creating a competitive advantage and identifying target markets.
Functional-level strategy: This type of strategy is focused on the specific functions within the organization, such as marketing, finance, and operations. It involves decisions regarding how to align these functions to achieve the overall goals of the organization.
International strategy: This type of strategy is focused on how an organization can best compete in global markets. It involves decisions regarding international expansion, localization, and adapting products and services for different cultures.
Growth strategy: This type of strategy is focused on increasing revenue, market share, or profitability. It involves decisions regarding expanding product lines, developing new markets, or acquiring other businesses.
Retrenchment strategy: This type of strategy is focused on reducing organizational size or scope, often in response to financial difficulties. It involves decisions regarding downsizing, divestment, or restructuring.
Turnaround strategy: This type of strategy is focused on reversing a decline in performance. It involves decisions regarding identifying the causes of decline, implementing changes, and restoring profitability.
Innovation strategy: This type of strategy is focused on creating new products, services, or business models. It involves decisions regarding research and development, intellectual property protection, and commercialization.
"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."
"Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics."
"Management theory and practice often make a distinction between strategic management and operational management, with operational management concerned primarily with improving efficiency and controlling costs within the boundaries set by the organization's strategy."
"Michael Porter identifies three principles underlying strategy: creating a 'unique and valuable [market] position,' making trade-offs by choosing 'what not to do,' and creating 'fit' by aligning company activities with one another to support the chosen strategy."
"Corporate strategy involves answering a key question from a portfolio perspective: 'What business should we be in?'"
"Business strategy involves answering the question: 'How shall we compete in this business?'"
"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 formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders."
"[Strategic management] is based on consideration of resources and an assessment of the internal and external environments in which the organization operates."
"Strategic management involves specifying the organization's objectives, developing policies and plans to achieve those objectives..."
"Operational management concerns improving efficiency and controlling costs within the boundaries set by the organization's strategy."
"Models and frameworks assist in strategic decision-making in the context of complex environments and competitive dynamics."
"Strategic management is not static in nature..."
"Strategic management provides overall direction to an enterprise..."
"Strategic management involves... allocating resources to implement the plans."
"Creating 'fit' refers to aligning company activities with one another to support the chosen strategy."
"The models can include a feedback loop to monitor execution and to inform the next round of planning."
"Management theory and practice often make a distinction between strategic management and operational management..."
"Making trade-offs by choosing 'what not to do' is one of the principles underlying strategy according to Michael Porter."