ESHWARI.S---LORAA BUSINESS ACADEMY Page 2
is used to refer to the entire scope of strategic-decision making activity in an organization.
The following statements serve as a number of workable definitions of strategicmanagement:
Strategic management is the process of managing the detection of organizational mission whilemanaging the relationship of the organization to its environment (James M. Higgins).
Strategic management is defined as the set of decisions and actions resulting in theformulation and implementation of strategies designed to achieve the objectives of theorganization.
What is strategy?
"Strategy is the
of an organization over the
Strategy, a word of militaryorigin, refers to a planof action designed to achieve a
particular goal. Inmilitary usagestrategy is distinct fromtactics, which are concerned with the
conduct of an engagement, while strategy is concerned with how different engagements arelinked.
Strategy at Different Levels of a Business
Strategies exist at several levels in any organization - ranging from the overall business (or groupof businesses) through to individuals working in it.
- is concerned with the
overall purpose and scope
of the business to meetstakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategyis often stated clearly in a "mission statement".
siness Unit Strategy
- is concerned more with
how a business competes successfully
in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.
- is concerned with
each part of the business is organised to deliver
the corporate and business-unit level strategic direction. Operational strategy therefore focuseson issues of resources, processes, people etc.
How Strategy is Managed - Strategic Management