Strategic Management Flashcards, test questions and answers

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What is Strategic Management?

Strategic management is the process of setting goals and objectives, analyzing internal and external environments, and implementing strategies to achieve organizational success. It involves assessing the organization’s capabilities, developing strategies to achieve those goals, and transforming those strategies into action plans. A successful strategic management process requires the effective coordination of resources among all levels of the organization in order to ensure that each strategy is implemented properly.In today’s ever-changing business environment, successful companies must have a well-defined strategic management plan. This plan should include an assessment of the current state of the company as well as an evaluation of its potential future opportunities. This assessment should include an examination of both internal strengths and weaknesses as well as external influences such as customers, competitors, suppliers, government regulations and economic conditions. Once these factors are identified and analyzed, a company can develop a strategy that will enable it to meet its goals while minimizing risk.Strategic management consists of four key elements: mission statement development; goal setting; resource allocation; and implementation planning. The mission statement serves as the foundation for all other activities within the strategic management process by communicating what the company wants to accomplish in general terms over time or within a certain period. Goals provide further specificity about what needs to be achieved during particular time frames or by specific measures or outcomes. Resource allocation helps determine which resources will be used for each activity within each goal area so that activities are aligned with goals efficiently in order to maximize performance results at minimal cost levels. Finally, implementation planning outlines how resources will be used in order to effectively implement strategies from conception through execution in order for them to have desired effects on organizational performance over time.