Strategic management is the process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy. An appropriate strategy is one best suited to the needs of an organization at a particular time.
The strategic management process consists of five sequential and continuing steps:
Environmental analysis is the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operations. An organization can be successful only if it is appropriately matched to its environment.
Environmental analysis aims continually re-invent and sustain corporate performance. This requires strategic foresight to identify new opportunities and trends in existing businesses, and the ability to align the business portfolio accordingly.
To perform an environmental analysis efficiently and effectively, we help our clients to understand what is happening both inside and outside their organizations and to increase the probability that the organizational strategies they develop will appropriately reflect the organizational environment.
We help our clients to build better understanding of key internal and external data which are more relevant to macroeconomic changes, trends, and corporate performance. Accordingly, clients become able to identifying business and growth opportunities and develop accurate strategies to capture them.
Two important ingredients of organizational direction are organizational mission and organizational objectives.
Organizational mission is a broad statement of organizational direction and is based on a thorough analysis of information generated through environmental analysis.
Through an interpretation of information gathered during environmental analysis, the direction in which an organization should move will be determined. Two important ingredients of organizational direction are organizational mission and organizational objectives.
is the purpose for which—the reason why—an organization exists. The firm’s organizational mission reflects such information as what types of products or services it produces, who its customers tend to be, and what important values it holds.
are defined as the targets toward which the open management system is directed.
The Relationship between Mission and Objectives
Useful organizational objectives must reflect and flow naturally from an organizational mission that, in turn, was designed to reflect and flow naturally from the results of an environmental analysis.
Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose. Organizations formulate strategies that reflect environmental analysis, lead to fulfillment of organizational mission, and result in reaching organizational objectives.
Understanding the forces that determine competitiveness within an industry should help to develop strategies that will make the organization more competitive within the industry.
We use standard and reliable strategy development tools. We use a tool or combination of tools that seems most appropriate for the organization. Also, conclusions the tools suggest will not be applied in a mechanistic fashion, but will be carefully considered in light of sound managerial judgment and experience.
Analyzing the organizational environment and applying one or more of the strategy tools will give a foundation on which to formulate an organizational strategy.
We help our client to understand his organization’s characteristics; its size, level of productivity, and capital structure; as well as the trends he is exposed to and the big moves he can make to shift his position.
Usually corporate portfolio comprises more than one business, so corporate strategy must establish the right business portfolio. Taking into consideration industry predictability, this requires evaluating every business unit to adapt to its industry or to shape its industry.
Depending on a company’s unique situation, we help clients determine the more proper strategy to be used in specific situation, and to quickly deploy the strategic approach.
We help clients improve performance by designing portfolios that position them for success. Portfolios design will be supported by resource reallocation, integrated business-unit strategies, and planning processes.
Building balanced portfolio and reigniting growth need company to examine their current mix of assets, capabilities, and processes. Our consultants integrate their expertise in resource allocation and performance improvement to strengthen company and build sustainable value.
Without successive implementation, valuable strategies developed by managers are virtually worthless. The successful implementation of the strategy requires four basic skills: Interacting skill, Allocating skill, Monitoring skill, and Organizing skill. Overall, the successful implementation of a strategy requires handling people appropriately, allocating resources necessary for implementation, monitoring implementation progress, and solving implementation problems as they occur.
We help managers and implementers to develop those skills and provide our supervision and support during the phase of strategy implementation.
The last step of the strategic management process, consists of monitoring and evaluating the strategic management process as a whole to ensure that it is operating properly.
Strategic control focuses on the activities involved in environmental analysis, organizational direction, strategy formulation, strategy implementation, and strategic control itself—checking that all steps of the strategic management process are appropriate, compatible, and functioning properly.