MGT 290 8/19/19

Assignment #1

1. Define the concept of strategic management.

Strategic Management was conceived due to the short comings and

limitations of traditional models of administration. Primarily because
traditional models tend to be short term in nature and focus more on
specific problems rather than addressing the needs of the organization as
a whole.

Strategic management focuses on the long-term planning of the

organization. It addresses not only specific level problems but is geared
towards providing long-term solutions in all levels of administration and
also in all aspects of the organization with special regard to its external
factors. Long-term solutions are achieved by internalizing the
organization’s mission, then providing changes and policies in all levels
that are in line with the mission’s essence.

According to Toft (1989), Strategic management aims to extend the

strategic vision throughout all units of organization, encompassing every
administrative system. Instead of being mechanistic, it ‘recognizes the
central role played by individuals and groups and the influence of
corporate culture.

In conclusion Strategic Management is a more comprehensive way of

providing an organization its long-term direction.

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Franz Oleg C. Villlarente
MGT 290 8/19/19
Assignment #1
2. What are the principal components of strategic management?

According to Bozeman and Straussman (1990) they argue that there are
three major features or components in strategic management/strategic
approach:

First is defining goals and objectives or simply the organization’s

mission. Hax and Majluf (1984) pointed out that the mission of the
business includes a clear definition of current and expected business
scope, products, markets and expectation over a period of a few years. The
mission involves consideration of what business the organization is in.

Second major component is developing an action plan that mediates

between the organization and the environment or simply Strategic
Planning. From the mission, environmental scan, and specified objectives,
a strategy plan is derived for both the short and longer term, combined
with resource allocation and performance measures.

The third component is designing effective methods of implementation.

Methods for implementation should follow appropriate model designs to
be more holistic in order for the organization to achieve effectiveness.

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Franz Oleg C. Villlarente
MGT 290 8/19/19
Assignment #1
3. Given that most of the tools and concepts of strategic management
were developed in the private sector, is it valid to apply them to
public sector organizations? For what reasons?

Tools and concepts of strategic management formulated for the private

sector could entail difficulties when applying to public sector due to the
great difference of both its natures. But looking from a wider perspective
we can look at each sector as an organism, they may work differently
internally but constantly react to its external environment. These
similarities could be a catalyst of formulating and implementing
management concepts that could be applicable for both sectors.

The government sector by nature creates policies which are long-term

thus strategic management is valid in its applicability. Strategic
management is concerned with strengthening the long-term viability and
effectiveness of public sector organizations in terms of both substantive
policy and management capacity. It integrates all other management
processes to provide a systematic, coherent, and effective approach to
establishing, attaining, monitoring, and updating an agency's strategic
objectives.

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Franz Oleg C. Villlarente
MGT 290 8/19/19
Assignment #1
4. What are the challenges of applying strategic management
concepts in public organizations?

The common challenges of applying strategic management concepts in

public organizations are the political nature of public organizations.
Public organizations can be considered synonymous to politics as it is a
major identity of all public organizations. The problem stems here
because of the difficulty of mixing strategic management concepts with
politics. Politicians commonly contradict strategic management concepts
by favoring and following more traditional models of administration
which are short-term in nature.

Another, when simply copying strategic management concepts from

private sector and applying it in public institutions doesn’t guarantee it
will succeed, due to the special nature of the public sector because of the
roles of politicians and the public in it.

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Franz Oleg C. Villlarente