Thursday, November 11, 2010

Strategic Management

In this post i'm going to define strategy and explain it the Characteristics.

Strategy is the direction and scope of an organization over the long terms.Which achieves advantage for the organization through its configuration of resources within a changing environment, to meet the needs of markets and to fulfill stakeholder expectations.

Characteristic of Strategic Management / Strategic Decision.

1: Scope of an organizations activities.
Strategy decisions are likely to be concerned with scope of an organization's activities. Does the organization concentrate on one area of activity, or does it have many?

2-Matching of an organization's activities to its environment.
What is environment?
            " The forces or institutions that are outside the organization and potentially affect the performance of an organization".
There are large number of factors such as, Customers, Supplies, Technology, Computers, Globalization, economic, social, pressure group etc.
Strategy is to do with matching of the activities of an organization to the environment in which it operates.The environment is continually changing, Strategy decisions usually involves change often of a major kind.

3-Matching of the activities of an organization to its resources capabilities.
Strategy decisions are concerned with matching of the activities of an organization to its resources capabilities.

4-Allocation and Re-Allocation of major resources in an organization.
Strategy decisions often have major resources implications for an organizations. These were not small scale. Changes in resources: they involved a fundamental restructuring of the business in terms of physical financial and manpower resources.

5-Values, expectations and goals of those influencing strategy.
The strategy of an organization will be affected not only by environment forces and resources availability, but also by the values and expectations of those who have most influence in the organization.
(i) Dimensions of organization structure. (ii) values. (iii) Expectancy.

6- Direction of an organization.
Strategy decisions are concerned with the direction of an organization will move in the long term.

7- Complex in nature.
Strategy decisions are often complex in nature, involving many considerations, and concerned with implications for changes through out the organization they are there fore likely to be complex in nature.

8-Advantage for Organization.
Strategy decisions are normally about trying to achieve some advantage for the organization.

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