Contribution of strategic management to organizational performance

Type :

Term papers

Pages :

8 pages

Format :

.doc

Published date :

05/31/2009

Category :

Business & market

Sub category :

Management

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Summary :

Introduction
Strategic management
Three key principles of Michael Porter
Elements of the strategic management process
A look into business pressures and organizational responses
Benefits of strategic management process
1. Financial benefits
2. Non-financial benefits
Limitations of strategic management
Approaches to strategic management
Strategic management in practice
Conclusion
Bibliography

Abstract

Truly, business is a high-stakes game (Brandenburger & Nalebuff 1995, p. 57): the wrong strategic move could mean millions of dollars lost, or thousands of jobs jeopardized, or even the bankruptcy of a firm. Strategy setting, to be successful, must consider the organization as a whole and not as an entity made of distinct and independent business units, and must include everyone in the organizational. Strategy is a detailed plan for a business in achieving success. It is the bundle of decisions and activities an organization chooses to achieve its long-term goals; in other words, it is the path it chooses.How does a company make or formulate strategies? Simply, every organization needs to figure out what it wants to achieve, and then how it is going to make it happen, with its products, customers, and operations. The thing is who will figure out what an organization wants to achieve. Traditionally, strategy is an area delegated solely to the CEOs, and much depends on the analysis of data, detailed planning, and to-down command. This structure of strategy formulation is in-lined with Michael Porter's management principles. But the world where Porter formulated his management principles is much more different from the world today, so naturally the way companies formulate strategies would also change.In this paper, I discuss what strategic management is, its potential benefits and limitations, its different elements, and strategic management in practice. Through this I aim to contribute to the existing literature on strategic management and facilitate its understanding.