Explain the strategic management process

The purpose of goal-setting is to clarify the vision for your business Define both short- and long-term objectives Identify the process by which to accomplish your objective Give each person a task with which he can succeed How you would do it in Boardview: Defining the parent Set a long-term organization-wide strategic goal. This is the one goal all members of the organization should be able to reproduce and chant at any time.

Explain the strategic management process

Organizations go through an inevitable progression from growth through maturity, revival, and eventually decline.

Explain the strategic management process

The broad corporate strategy alternatives, sometimes referred to as grand strategies, are: During the organizational life cycle, managements choose between growth, stability, or retrenchment strategies to overcome deteriorating trends in performance.

Just as every product or business unit must follow a business strategy to improve its competitive position, every corporation must decide its orientation towards growth by asking the following three questions: At the core of corporate strategy must be a clear logic of how the corporate objectives, will be achieved.

Most of the strategic choices of successful corporations have a central economic logic that serves as the fulcrum for profit creation.

Some of the major economic reasons for choosing a particular type corporate strategy are: The non-economic reasons for the choice of corporate strategy elements include: There are four types of generic corporate strategies. A stability strategy is utilized by a firm to achieve steady, but slow improvements in growth while a retrenchment strategy which includes harvesting, turnaround, divestiture, or liquidation strategies is used to reverse poor-organizational performance.

Once a strategic direction has been identified, it then becomes necessary for management to examine business and functional level strategies of the firm to make sure that all units are moving towards the achievement of the company-wide corporate strategy.

The Five Stages of the Strategic Management Process - Boardview

The firm stays with its current business and product markets; maintains the existing level of effort; and is satisfied with incremental growth. It does not seek to invest in new factories and capital assets, gain market share, or invade new geographical territories.

Organizations choose this strategy when the industry in which it operates or the state of the economy is in turmoil or when the industry faces slow or no growth prospects.

They also choose this strategy when they go through a period of rapid expansion and need to consolidate their operations before going for another bout of expansion.

Firms choose expansion strategy when their perceptions of resource availability and past financial performance are both high. The most common growth strategies are diversification at the corporate level and concentration at the business level.

Reliance Industry, a vertically integrated company covering the complete textile value chain has been repositioning itself to be a diversified conglomerate by entering into a range of business such as power generation and distribution, insurance, telecommunication, and information and communication technology services.

Diversification is defined as the entry of a firm into new lines of activity, through internal or external modes. The primary reason a firm pursues increased diversification are value creation through economies of scale and scope, or market dominance.

In some cases firms choose diversification because of government policy, performance problems and uncertainty about future cash flow. Internal development can take the form of investments in new products, services, customer segments, or geographic markets including international expansion.

Diversification is accomplished through external modes through acquisitions and joint ventures. Concentration can be achieved through vertical or horizontal growth. Vertical growth occurs when a firm takes over a function previously provided by a supplier or a distributor.

Horizontal growth occurs when the firm expands products into new geographic areas or increases the range of products and services in current markets. Turnaround strategy is a form of retrenchment strategy, which focuses on operational improvement when the state of decline is not severe.

Other possible corporate level strategic responses to decline include growth and stability. A firm adopting the combination strategy may apply the combination either simultaneously across the different businesses or sequentially.Aug 23,  · Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals.

Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Webpage on Management Functions, Human Resource Management, Economic and Social Environment, Accounting and Finance for Managers, Marketing, Management Information System, Quantitative Analysis, Management Economics, Organisational Design Development & Change, Strategic Management, Social Processes and .

Chapter 1: Strategic Human Resources Management 3 IntroductIon The previous vignette illustrates a mistake many healthcare organizations make when they.

Definition: Strategic Management Process

Strategic Human Resources Management: Where Do We Go From Here?†† Brian E. Becker* School of Management, State University of New .

Explain the strategic management process

Operations Research, Management Science, Decision Science, and Success Science (OR/MS/DS/SS) Decision Science (DS) known also as Operations Research (OR), Management Science (MS), and Success Science (SS) is . Strategic Management Process is an ongoing process of five steps which defines the way an organization makes its strategy to achieve its goals.

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