Strategic management meaning and important concepts. Goals, priorities and strategies outlines the goals, priorities, and strategies to meet the mission 3 4 overarching goals aligned with mission. Strategic management is an approach to leadership that involves clearly articulating a companys overall mission, and then setting a series of strategic objectives, or quantifiable goals, to chart progress. Within the departments and offices, it means aligning a division, section, unit or team to a higherlevel strategy. The strategic management process means defining the organizations strategy. An overview learning objectives after completion of the unit, you should be able to. The term strategic management is used to denote a branch of management that is concerned with the development of strategic vision, setting out objectives, formulating and implementing strategies and introducing corrective measures for the deviations if any to reach the organizations strategic intent. Strategic management objectives can be defined as taking some sets of the decision, and some actions either in a group or individually and those acts determine the output of the companys performance and those key decisions outline how rightly the strategy was executed.
Strategic management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is corelated to other organizational members. Strategic management is about success and failure, about the ability to plan wars and defeat them. This paper presents strategic management as an important business management concept. Strategic management involves setting objectives, analyzing the competitive environment. Management by objectives mbo is a management model that aims to improve performance of an organization by clearly defining objectives that are agreed to by both. And just like a process, plans have to be in place to deal with exceptions.
A strategy gives direction to diverse activities, even though the conditions under which the activities are carried out are rapidly changing. Strategic goals are the highest goals of the organization or an individual. They participated in extensive interviews and provided documentation from their own strategic management efforts. Global strategic management imgt490 semesteryear fall 20152016 1 subject. A handbook for implementation lviil acknowledgements i want to thank the following people and organizations who contributed to this handbook by agreeing to participate in our research. An effective strategic management performance can transform an organization, bring wealth to shareholders, or change the structure of an industry. The board of directors and the senior managers set the organizations toplevel to make the corporate.
Essentially, mbo is a process or system designed for. As a management approach, it has been further developed by many management theoreticians, among them douglas mcgregor, george odiorne, and john humble. Someone compiles these lists, puts them into a threering binder, and attempts to update them on a monthly or quarterly basis. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Know the featurescharacteristics of strategic management. Strategic objectives are one of the fundamental building blocks of your strategic plan. Pdf strategic management and strategic planning process. Since portfolio management is a core competency, pmos actively participate in strategic planning and help shape strategy by providing feedback to executives about performance, labor costs, and customer feedback. Strategic management process strategic management process dr i. The history is filled with the examples where the strategic management of offensives and counter offensives paved the path for decisive victories.
Strategic management is the management of an organizations resources to achieve its goals and objectives. School of business strategic management by department strategic implementation prepared by. About me adjunct lecturer at hks two decades experience in the nonprofit and philanthropic sector, designing and leading large global and national initiatives and organizations board experience on boards and advisory boards. Managers down the line rough out productmarket strategies. It formulates operating rules, priorities and direction in the long term, including the direction the organization wants to go. Helps in the interpretation of financial information 3. As a quick refresher, remember that strategic objectives are longterm and should be aligned with your organizations mission and vision. Pdf the importance of strategic management to business. They have some specific mission towards which all efforts are directed. Strategic planning defined strategic planning is a process of looking into the future and identifying trends and issues against which to align organizational priorities of the department or office.
A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for more specific business unit goals and objec. When planning a firms strategy it is important to have objectives in mind and to understand the differences between the. Strategic management is a continuous process that appraises the business and industries in which the. This chapter on the strategic management and strategic planning process provide an insight on the basic knowledge on what is strategy and strategic management. Mcq multiple choice questions and answers on strategic management. Strategic management process meaning, its steps and. Strategic management is the process by which top management determines the longterm direction of the organization by ensuring that careful formulation, implementation and continuous evaluation of strategy take place. Strategic management trivia questions and answers pdf. What is strategic management, and why is it important. Nowadays strategic management has become one of the primary topics in management of organizations because of the dynamic business environment. Chaneta department of business studies faculty of commerce university of zimbabwe abstract wheelen and hunger 2002 say that strategic management is a set of managerial decisions and actions that determines the longrun performance of an organization. Fulfillment of the departments mission and supporting strategic goals is accomplished through its bureaus. The art of strategic management remained primarily associated with the military history.
It defines strategy and explains the key concepts in strategic management. Additionally, all objectives are either shortrun or longrun types. Helps in the solution of strategic business problems 6. The planning, implementation, monitoring and assessment of a strategy has to be defined as a series of tasks undertaken in a specific order. Key concepts for strategic management and organizational goals. In strategic management, there are strategic objectives and financial objectives.
What is strategic management process steps, stages and. In the corporate sector, its emergence started after the culmination of second world war. For all intents and purpose of this post, weve put together below a short list of common strategic objectives. Therefore, this research aims to assess the acquired knowledge of university management students relating to strategy and strategic management concepts with the purpose of answering the following question. The strategic management process the process can be broken down into three phases. How to define strategic objectives examples of strategic. For the better part of a decade, strategy has been a business buzzword. Strategic planning is a process of looking into the future and identifying trends and issues against which to. Mcq quiz on strategic management multiple choice questions and answers on strategic management mcq questions quiz on strategic management objectives questions with answer test pdf for interview preparations, freshers jobs and competitive exams. Strategic planning the strategic planning referring only to strategy formulation. Professionals, teachers, students and kids trivia quizzes to test your knowledge on the subject. Caltrans strategic management plan 1 message from the. Top executives ponder strategic objectives and missions.
Mba strategic management lecture notes pdf download mba. Strategic pmos play a vital role in driving business outcomes. Each bureau has a broad range of responsibilities and functions, described briefly in the following sections. This paper entails the concepts of strategy, strategic planning, strategic thinking, strategic management and the importance of strategic management. Strategic management contents 1 introduction 7 2 the basis of strategy.
The next step in developing a strategy is defining the objectives or goals of a programme or service. As a term, management by objectives was first used by peter drucker in 1954. Many objectives are nothing more than an assortment of task lists submitted by various executives and managers. Strategic management multiple choice questions and answers. Most strategic and operational plans ignore the definition of strategic objectives. Strategic management the art and science of formulating, implementing, and evaluating crossfunctional decisions that enable an organization to achieve its objectives. Razan almasri a group project submitted in partial fulfillment of the requirement for the course. An inefficient strategic management can fail whole companies 5. Excellence in project management remains a critical capability for pmos. These strategic objectives cascade down from the top to the lowest levels of the organization, thus creating a hierarchy see the following table. Key concepts for strategic management and organizational. Strategic plan goals, objectives, strategies and strategic initiatives 2 the agency has identified three overarching goals which will be achieved through the implementation of the goals, objectives, strategies and strategic initiatives delineated herein.
The strategy describes the way that the organization will pursue its goals, given the changing environment and the resource capabilities of the organization. The following points highlight the top nine objectives of management accounting. Strategic management is a key and top management activity, where all management functions meet it is one of the key pillars of management and it forms the skeleton of the overall management of each organization. Our mission, vision, strategic goals, and objectives fy 2004 fy 2009 strategic plan 3 mission statement the department of commerce creates the conditions for economic growth and opportunity by promoting innovation, entrepreneurship, competitiveness, and stewardship. Strategy refers to a general plan of action for achieving ones goals and objectives. Examples of strategic objectives onstrategy resources. It is nothing but the art of managing employees in a manner which maximizes the ability of achieving business objectives. Balanced scorecard the strategic goals of the organization are linked to its. In this article we will discuss about the various steps, stages and phases involved in the. The agencys three overarching goals are overlapping and interconnected. I am very pleased to present the 2015 2020 caltrans strategic management plan. Business structure may be corporate objectives, businessunit objectives, functional objectives, and operating objectives.
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