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STRATEGIC MANAGEMENT/ Basic concepts

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STRATEGIC MANAGEMENT

Basic concepts

20 Aralık 2017
Yazan: Sireen Khemesh
 STRATEGIC MANAGEMENT
Basic concepts

Abstract………………………………………………………………………………………………......2

STRATEGY CONCEPT…………………………………………………………………………….......3

Highlights of Strategic Management……………………………………………………….................4

STRATEGIC MANAGEMENT………………………………………………………………………….5

STRATEGY MANAGEMENT DEVELOPMENT……………………………………………………...7

Strategic planning………………………………………………………………………………………..8

Strategic Plan…………………………………………………………………………………………….9

Operational Plan…………………………………………………………………………………………9

Tactic Plan…………………………………………………………………………………………….....9

STRATEGIC MANAGEMENT BENEFITS…………………………………………………………..10

STRATEGIC MANAGEMENT CAUSES FAILURE………………………………………………..11

STRATEGIC MANAGEMENT MODEL………………………………………………………………11

STRATEGY CREATION………………………………………………………………………………13

Creating Long-Term Objectives………………………………………………………………………13

Determination of Strategies…………………………………………………………………………...14

STRATEGY APPLICATION…………………………………………………………………………..15

Strategy Creation……………………………………………………………………………………….15

Strategy Application…………………………………………………………………………………….16

Strategy Valuation………………………………………………………………………………………16

STRATEGIC MANAGEMENT PROCESS ACTIVITY………………………………………………16

Resources……………………………………………………………………………………………….18
STRATEGIC MANAGEMENT | 20.12.2017

1
ABSTRACT

Have you ever thought why some business succeed while others do not?

How do we explain some consistent growth and profitability of some

businesses? Could it be that there are strategists whose business executives are
following and which have a significant impact on their performance relative to
their competitors? It is a challenging job for many, if not all, businesses to
achieve superior performance compared to their competitors. Strategies can
make businesses more profitable than their competitors with increasing market
share, cost leadership, unique products or services. It is said that the business
operator has a competitive advantage if it allows the business to achieve
superior performance in its strategies. How then is a competitive advantage
gained? How is a competitive advantage maintained? It is important to look for
answers to these and similar questions and to acquire knowledge and skills in
strategic management.
For strategic management Strategic management is primarily concerned with
long-term success, revenue and profitable growth, and a high profitability relative
to the company's competitors. The strategic management is also a key role
played by analytical and technical skills required to acquire and implement
competitive advantage, It is related to.
Strategic management is based on what the top managers need to do. It has to
do with the long-term purpose of the operation. It seems the business as an
open system. It treats the interests of the society as a whole with the aim of the
business. It deals with the efficient distribution of the supply resources.
In this unit, we will talk about the basic concepts of strategic management.

STRATEGIC MANAGEMENT | 20.12.2017

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 STRATEGY CONCEPT
In recent years, we are witnessing that strategic and strategic management, strategic
planning concepts are used more frequently in business life, and even daily life. The strategy
can be defined as a dynamic decision-making community based on a long-term perspective,
with a focus on the final outcome, which determines how an entity will achieve its objectives
and monitors the actions of its competitors. it is not possible to talk about the same
consensus about what a good strategy is and the strategy, although there is a consensus
that the survival and success of businesses depend on good strategy selection and
implementation. Before we get to know about strategic management, it will be appropriate for
us to have an understanding of what the strategy is. The initial debate about the strategy, a
military term based on its origin, is based on Sun Tzu, Homer, Euripides and many other
strategists and writers. Let's talk about some of the distinguishing features to understand the
concept of strategy correctly in terms of business management.

• The strategy aims to completely control the direction of the business. It affects the long-
term prosperity of business.

• The strategy covers a long time horizon according to a horizon that the operator can see;
usually measured over many years, rather than weeks or months.

• There is an effect that surrounds the whole, rather than a single part.

• The strategy is constructed in relation to the organization resources and capabilities and
uses these resources and capabilities at full capacity.

• The strategy aims to create the best possible harmony between the organization and the
environment, on the one hand, and between the organization and its mission on the other.

• Strategic decisions require great resources and it is difficult to return from these decisions.

• The strategy is distinguished by the strength of the organization's commitment to it and its
inability to change it.

• For organizations in a competitive environment, it is often desirable to gain an edge over

competitors with its strategy.

• Under normal circumstances, an organization or business unit can follow only a few
different strategies that can focus its resources and energy at the same time.
STRATEGIC MANAGEMENT | 20.12.2017

• The strategy is futuristic and therefore contains uncertainty and risk.

• The strategy indicates what to do and what not to do. This inevitably requires change, and
sometimes there are radical changes in many aspects of business operations.

• A successful strategy is a product of an integrated collective effort based on the

cooperation of many departments (Moseley III, 2009: 2-3).

For example; Bozüyük, Turkey Union of Chambers and Commodity Exchanges (TOBB) by 4-
Year Accreditation Program in the framework for extracting the highest level of service
quality carried out by Chambers and Commodity Exchanges of Strategic Plan has been

3
prepared. In the Strategic Plan of the Chamber of Commerce and Industry of Bozüyük, which
covers the years 2012-2015 and is now also published on the official internet pages of Odan,

1. To improve the institutional capacity of Odan to enable the services provided to the
members, to meet internal and external stakeholder expectations,

2. To increase communication and business cooperation with members, to improve the

institutional structures and business capacities of the members,

3. To carry out studies to improve the industrial and trade potential of Bozüyük,

4. To be effective in solving social and local problems by providing communication and

cooperation between institutions

4 main strategic objectives were identified with the main headings.

( http://bozuyuk11.com/bo-zuyuk-ticaret-ve-sanayi-odasi-stratejik-planini-hazirladi.html).

Highlights of Strategic Management

It would be relatively easier to manage an organization that operates in a sector that
is fairly static, simple and has a low rate of change. But nowadays, such a sector is
almost inexhaustible. This situation confronts strategic management as an
indispensable approach to the management of organizations. Some developments
that are required to approach the management case with a strategic point of view;

• The increase in the number of customers' requests for quality and variety of products,

• Thanks to rapidly developing technologies, the developments experienced in delivering

products to customers,

• The intensification of competition due to the development of new technologies and the
increase of educated human resources,

• The fact that manufacturers operating in Asia are entering the world market with cost
leadership strategy and becoming a significant threat to Western producers,

• Increase of the importance given to the issues of conservation of the natural environment
and development of interest to environment-friendly alternative raw materials and materials,
STRATEGIC MANAGEMENT | 20.12.2017

• Development of consumer rights at local, regional and global level,

• diffusion and facilitation of communication through internet and other information

technologies,

• As a result of globalization, a more social structure emerges,

• The development of real multinational enterprises and the integration of transnational,

national and local cultures of such enterprises can be summarized (Cole, 2004: 138-139).

STRATEGIC MANAGEMENT

4
 Strategic management can be defined as the art and art of deciding, implementing and
evaluating inter-functional functions that enable the organization to achieve its goals. Every
business fulfills a number of activities designed to create products or services that it orients
itself to sell, deliver, or distribute to an individual or corporate customers. Customers also
need to be willing to accept, demand, obtain and pay for these products or services. This
situation, which is currently in effect, may change over time. This is because customers may
be directed to other businesses as a result of changes in competitive or quality products or
services of their competitors or in their wishes and reference frames. businesses constantly
resort to strategic management in order to be able to adapt themselves to such changing
conditions.

This adaptation may require that any part of the organization's operations or orientation be
altered. The product or services may vary; the methods of producing them may vary;
products or services may be offered to customers. businesses usually have to make new
arrangements for three reasons (Moseley III, 2009: 6-7):

• To reward or satisfy stakeholders,

• To carry out the mission or to maintain its mission,

• Survive.

Stakeholders are the individuals and groups that the employer is influencing and
influencing while trying to achieve their goals. One approach used in the formulation and
implementation of strategies is based on the analysis of these individuals or groups for both
detection and better understanding. Stakeholders have a significant impact on the success of
the business. It is, therefore, one of the concepts related to strategic management.
Strategists set the overall objective of the business so that it goes beyond the needs of key
stakeholders, not just to meet their known needs. It clarifies the mission and vision
expressions of these enterprises.

These groups vary depending on the size of the enterprises, the nature of their activities, and
their geographical prevalence. In some cases, government policies, local governments,
media, activists may challenge the implementation of a well-defined strategy. In summary,
conducting stakeholder analysis at the beginning allows for better formulation,
implementation, and monitoring of the strategies. Stakeholder analysis is a critical factor,
especially in the implementation phase when the strategy becomes visible.
STRATEGIC MANAGEMENT | 20.12.2017

The mission, which is defined as the cause of the existence and activities of the
enterprises, forms the basis for the strategies of the business. All the necessary operational
systems are designed to sustain the organization's resources, actions and efforts focused on
its mission. Many of the company's partners and lenders may not be particularly interested in
what the mission is, as long as the response to the offer is sufficient.

The main motivation behind rational strategies is to achieve mission and stakeholder
satisfaction, perhaps, even more, to survive. Even if the stakeholders have given up and their
mission is not supported, some organizations endeavor to maintain their lives. the industry
struggles to maintain its presence as long as the structure of the industry it allows.

Even those organizations that are not under pressure to compete can

5
They have to care about their changes. New emerging laws, changes in the consumer
demographics, separation of the retirement of key personnel, will lead to the need for
strategy. Appropriate operational arrangements will be made to accommodate these
changes; new legislative alignment policies and procedures, adding or subtracting to existing
products and services, recruiting new employees and renewing job descriptions. Though
there is no intense pressure from the outside to make it happen, these adjustments will be
necessary to make it happen quickly.

In the end, every organization has to face a kind of competition. Competition and risk are the
natural characteristics of business life for profit-seeking entrepreneurs. Strategic
management is about acquiring and sustaining competitive advantage. Sometimes it is the
operator's best when compared to his competitors; sometimes something the operator can
do, but his opponents can not do; sometimes it is a desire of their opponents

the owner of the thing can show itself as a competitive advantage. For example; we can say
that in the period of economic stagnation, a company with large cash holdings has a
significant competitive advantage.

Having a competitive advantage and protecting it is essential to the long-term success of the
business. having the competitive advantage of the business leads to the failure of success or
loss of competitive advantage. The business can only sustain this advantage for a given
period, as competitors can imitate or trivialize the advantage they have under normal
conditions. That's why it's not just about getting him. businesses must strive to have a
sustainable competitive advantage. For this reason, they constantly struggle to adapt to their
inherent capacities, competencies, and resources, and to changes in the outward trends and
events; Under these conditions, they strategically define, apply and evaluate strategically for
their winnings.

In order to understand strategic management, three theoretical bases must be

mentioned.

• Classical strategic management process model: This approach is mainly based on the
applications of industrial organization economics (economic theory). The approach includes
the analysis of the operator and its environment (SWOT), the formulation, implementation
and control of the strategy.

• the latter is a resource-based approach. This approach is based on seizing and managing
resources that will help the business develop a sustainable competitive advantage.
STRATEGIC MANAGEMENT | 20.12.2017

• The third is an approach to the analysis and management of stakeholder relations. The
stakeholder perspective centers the business on the network of contracts formed by mutual
benefit relationships. The effective management of these relationships and the stakeholder
network itself can improve competitive performance.

As can be seen, these approaches point to different aspects of gaining competitive

advantage, which is the goal of strategic management. Most successful organizations have
the resources and talents that provide a competitive advantage. Moreover, they are able to
manage and satisfy large segments of the environment known as stakeholders. business
managers play a vital role in this process. Because they lead the development of the
strategies and the control of the executive. They engage in strategic acquisitions and/or
partnerships in connection with a core business strategy. Seizing and managing resources;

6
 processes related to the development and execution of the strategies are part of the strategic
management field.

This unit is referred to when it comes to concepts related to strategic management. You will
learn some other concepts in our other units. Here, two concepts must be mentioned in order
that strategic management can be understood better. These are basic skills and concepts of
strategic intent.

STRATEGY MANAGEMENT DEVELOPMENT

The emergence of strategic management comes quite late in the birth of the science of
management and coincides with the second half of the 20th century. The development of
strategic management has begun with the long-term planning of the majority of the business
sectors. Most of the long-term planning enterprises appeared in the 1950s. It was very
difficult to prepare the activity budgets without any data on future sales and cash flow.

After World War II, economies grew and demand many products and services increased.
Long-cycle demand forecasts have facilitated detailed marketing and distribution, production,
human resources and financial planning developments for managers of growing
organizations. The goal of long-term planning is to estimate the size of the claim to the
business's products and services for a specific future timeframe and determine where that
claim will emerge. Many businesses use long-term planning to make decisions such as
expanding their investments, hiring forecasts, capital needs, and so on.

long term planning strategic planning strategic management

With the change in the industry suddenly and unexpectedly taking place, the long-term
planning shifted to strategic planning. The underlying assumption of long-term planning is
that it will continue to produce the operator's existing products and services, and for that
reason, the key critical issue of the enterprise is ensuring consistency between demand and
production capacity. But the underlying assumption of strategic planning is that there are
large-scale economic, social, political, technological and competitive changes in the
environment. For this reason, business leaders should periodically evaluate the following
STRATEGIC MANAGEMENT | 20.12.2017

issues.

• Will we continue to offer the following products and services?

• Should we start offering different products or services?

• Should we resort to radical methods of operation or marketing?

Although the strategies are usually based on a specific time frame, the primary focus of
strategic planning is not on time. Competitive changes can sometimes occur in a few years.
In this case, the useful life of existing strains can be shorter. For this reason, "long-term" or
"short-term" is preferable to explain the time required to achieve the strategy far from a type
of planning.

7
 The 1960s and 1970s are years of strategic planning, especially in US businesses. The
strategic planning process provided a more systematic approach to managing these
business units. Moving the planning and budgeting horizon beyond the traditional twelve-
month operating period. In addition, business managers learned only that financial planning
was not a suitable framework. In the 1980s, the concept of strategic planning expanded as
strategic management. This development has revealed that environmental dynamics are not
only important but that businesses can rediscover themselves as a whole. Continuous
management and evaluation of the strategy is the key to success. Thus, we can say that
strategic management will continue its long-term existence as a philosophy or approach to
managing complex organizations (Swayne et al., 2008: 6-7).

Strategic planning

Strategies and strategic decisions are the searches for the future of an enterprise in the long
run. Strategic planning takes place at the center. Strategic planning is a disciplined struggle
that involves a specific period and produces the main decisions and actions that shape and
guide who is who, what they do, why they do it, and what they do. The organization is a
management tool that helps you do your job better. The organization provides the focus of
energy; ensure that the members of the organization work for the same purpose; evaluate
the organization's direction and, if necessary, reshape it in order to be able to give accurate
answers to changing environmental conditions. This process is strategic. Because the future
conditions are already known and unknown, the organization includes the best preparation
for meeting these environmental conditions. Being strategic means, for that reason, to be
clear about the goals of the organization, to be aware of the organization's resources, and to
consciously respond to a dynamic environment.

Planning is a process. This includes developing the desired objectives to be achieved and an
approach to achieve those goals. This process requires discipline because a specific
template or a specific sequence is followed in order to be focused and productive. A number
of questions are used in the process flow. These questions help the planners to take
advantage of their experience, to test their assumptions, to gather and consolidate the
information necessary for both the present and the foreseeable future.

Strategic Plan
STRATEGIC MANAGEMENT | 20.12.2017

• The organization encompasses a wide range of activities.

• Majority concerns a wide geographical area.

• Incorporates and influences everything within the organization.

• In large quantities, it will be credited to the deposit.

• Its application requires a very long time frame.

8
 Operational Plan

• The scope of activity is much higher.

• Affects a part of the people in the organization (a single department or a specific

profession).

• It requires more modest expenditures than the budget of the strategic plan.

• They normally do not take more time than a year.

Tactical Plan

• Planning activities are a continuum (strategic, operational, tactical). In this whole tactical
plan lies at the lower end.

• The organization encompasses activities that affect a smaller portion.

• It may require the participation of several people (one or two persons or a small temporary
working group)

• It covers a few days or weeks.

An industrial organization may have a strategic plan to expand its current market within two
years (opening stores in other cities of the country). In accordance with the operational plan
to accompany him, he may want to win 1000 new clients next year. As a tactical step toward
achieving this goal, the marketing department of the business may organize direct mail and
television advertising campaigns for a month.

It means that the planning and implementation processes are carried out skillfully; strategic,
operational and tactical efforts to integrate seamlessly into all of the forward-looking activities
of the organization.

The professional management of all organizations, whether for profit or not, requires a
strategic mindset, a strategic plan and the implementation of this plan. Most organizations
have a systematic competition form. State institutions or institutions to attract public support
and attention; they may have to compete with other public institutions for their share in the
STRATEGIC MANAGEMENT | 20.12.2017

government's budget. Similarly, non-governmental organizations struggle to seize potential

donations from individuals or corporations by addressing constant, mind, and volunteers.

Strategic action is more than just an answer. The organization must constantly adapt to
changes in the external environment. The world of the organization is filled with the stories of
closing or changing the organizations that can not see the need for this change or who can
not have the mental and material resources to make this change. Changes within the
organization may also require strategic action. For example, the separation of a person in a
critical position in a service operation or the separation of the retirement may affect the
institution's reputation. In this case, an urgent strategic move may be needed. It may be
necessary to take a creative strategic action to find someone instead of this person or to
maintain the current position of the business.

9
STRATEGIC MANAGEMENT BENEFITS

Strategic management provides a unique insight into how everyone within an organization
can not only think about in-house operations and their own operational responsibilities.
everybody in the enterprise needs to adopt a new attitude which includes the observation of
the outdoors and the interest in the big picture. From an optimistic point of view, employees
are expected to integrate "what" and "what".

Since strategic management is the way of organizing or philosophy, benefits can not always
be expressed in numbers. Below are the main benefits that strategic management can
provide to organizations (Dawid, 2011: 50).

• Allows opportunities to be identified and assessed.

• Provides an objective perspective on organizational issues.

• It makes it easier for organizational coordination and audit activities to be carried out.

• Supports the reduction of adverse effects of organizational change.

• Provides links between decision-making processes and organizational goals.

• Ensures that time and other resources are used more efficiently and effectively.

• Supports the resolution of conflicts and conflicts in a shorter time.

• Helps ensure effective communication within the organization.

• Ensures that individual efforts are integrated around organizational efforts.

• It requires that individual responsibilities be expressed clearly.

• Motivate individuals in future-oriented thinking.

• A collaborative approach to problem-solving efforts.

• Supports the development of a positive approach to change.

• Organizational management provides a formal discipline.

STRATEGIC MANAGEMENT | 20.12.2017

STRATEGIC MANAGEMENT CAUSES FAILURE

It can be considered that there is a linear relationship between the effectiveness of strategic
management processes and the level of organizational success. However, it should not be
forgotten that strategic management processes can fail for many reasons. Some of these
reasons include the following.

• Not having enough knowledge and experience in strategic management,

• The fact that organizational reward systems are not associated with strategic management
processes,

10
 • The absence of sufficient time and resources to be allocated for the strategic management
process in the crisis environment,

• The strategic management process is seen as a waste of time,

• The perception of the strategic management process as a rather expensive process to lead
to time and resource waste,

• The individuals within the organization are reluctant to take part in strategic management
processes for personal reasons,

• A reluctance to make additional efforts due to the belief in the continuity of success in
successful organizations,

• The bad experiences that people have experienced in the past due to the extraordinarily
long-running, difficult to apply and strategic management processes that are not flexible,

• The perception of the various changes in strategic management as threats,

• The fear created by the various uncertainties that may arise in the strategic management
process,

• Individuals should be honest about their misconduct in strategic management processes,

• The senior management has not been able to create confidence in the staff about the
necessity of strategic management processes (David, 2011: 50-51).

STRATEGIC MANAGEMENT MODEL

Strategic planning approach, which emerged in the 1950s with strategic management or
synonyms, was implemented by many businesses on a daily basis, and with successful and
unsuccessful experiences it has become a model that is now accepted and practiced by
many businesses. Figure 2.1 shows the strategic management model.

The strategic management model is not a series that ends after a certain period of time, but
rather a cycle. Having these models alone does not guarantee the success of the business,
but it provides a clear and practical approach to the creation, execution, and evaluation of the
strategies.
STRATEGIC MANAGEMENT | 20.12.2017

As you can see at the bottom of the figure, there are three basic stages in the process:
creating strategies, applying strategies, and evaluating strategies. In a strategic planning
process, the following three critical questions need to be addressed:

• Where are we now?

• Where do we want to reach?

• How do we reach that point?

The presentation of an enterprise's current vision, mission, objectives, and strategies should
be the logical starting point for strategic planning because the current state and conditions of
an operator may require the implementation of certain strategies or a certain course of
action. Even if not prepared consciously, written and shared, each business has its vision,
mission, goals, and strategy.

11
 The strategic management process starts with the determination of the vision and mission
of the business; After the analysis of internal and external factors, it is time to determine
long-term goals. Depending on our long-term goals, studies are being conducted on which
strategic options may be the subject. Based on certain criteria, it is determined which
strategies will give the best results for the business, and that strategy will be put into practice.
During the implementation of the strategies, the employees in the enterprise carry out their
own activities. For example, the marketing department determines which products, which
fiash to sell, and which qualities it should have. The production department begins to
produce the products with their features. human resources department, production,
marketing, personnel plans needed in the direction of research and development, finds them,
hires them, provides training.

The projected results must be assessed as a result of the implementation of the selected
strategy. This is actually a feedback. According to the results obtained, some changes will be
made on the process and the cycle will continue.

they can not act in full freedom while forming business strategies. Especially with
globalization, it is observed that social sensitivities are increasing on the world in some
issues. States, customers, non-governmental organizations, etc. they are now more sensitive
about the future of the world. Environmental issues (global warming, air, water and soil
pollution, traffic, etc.), social responsibility (operating within the framework of ethical rules,
approach to improving the quality of life of employees and their families and economic
development) we know that certain issues such as knowing what is wrong and what is wrong
in the business environment and showing correct behavior are of special importance. while
businesses have to take these sensitivities into account when constructing and implementing
their strategies. Apart from these, it is necessary to take into account the current conditions
and factors in international trade (economic conjuncture, inter-country trade, political
relations, etc.).

Strategic management process is dynamic and continuous. Changes in any element of the
model may require changes to the rest of the model. For example; the change in the
economic conjuncture can lead to a significant opportunity, which can lead to long-term goals
and a change in the strategy pursued. Similarly, the failure to meet annual commitments may
require a change in the policies applied. For this reason, strategy development,
implementation, and valuation activities should be carried out on a semi-annual basis, not on
STRATEGIC MANAGEMENT | 20.12.2017

a semi-annual basis or at the end of the year.

Some businesses start a new strategic management process cycle each year. This does not
mean that managers will choose and implement a new strategy each year. In many cases,
the implementation of the existing strategies will be resumed, or some changes will be made
on them. (Hitt ve diğerleri, 2007).

Strategic management process implementations are more formalized, especially in large,

professionally managed businesses. The formalism here is to clearly define the
responsibilities, authorities, duties, and approaches of the people involved in strategic
planning. Smaller enterprises engage less strategically in the strategic management process.
Businesses operating in a complex, rapidly changing environment, such as technology

12
 enterprises, have a more formal approach to strategic planning. Businesses with many
business units, product lines, markets, and technology also have a more formal process.

independent of the size and type of the operator, success in cost, scope, accuracy, and
planning is increasing in direct proportion to the increase in formality in the strategic
management process.

Formal strategic planning is most useful when environmental conditions are stable and
stable. Strategic success where external environmental conditions are highly variable and
less predictable; the flexibility in planning, the ability to learn about new opportunities, and
the continuous realization of changes to suit new opportunities. In such environments,
planning systems can still provide very important contributions to the success of the operator,
but not in a rigid structure (Thompson-Martin, 2005).

Let's take a closer look at the phases of strategy formulation, strategy implementation and
strategy evaluation of the strategic management process that we have briefly discussed.

STRATEGY CREATION

The first step in the strategic management process is the strategy. Stratigraphy involves the
creation of vision and mission, the identification of opportunities and threats arising from
outside the enterprise, the identification of strengths and weaknesses stemming from within
the enterprise, the determination of long-term objectives, the establishment of alternative
strategies and the selection of strategies to be followed. Topics such as which tasks to enter,
which jobs to leave, how to distribute resources, how to expand the scope of business,
whether to enter international markets, whether to join with another business or not will be
discussed.

If businesses have limited resources such as raw materials and capital, these resources
should be directed to the alternate that benefits the most for the enterprise. Strategy-building
decisions mean that businesses will be tied to specific products, markets, resources and
technologies for a long period of time. Strategies also define long-term competitive
advantages. the top management of the business has the perspective to best understand the
effects of strategy making decisions. Supervisors also have the authority to channel
resources to specific areas for the implementation of strategies.
STRATEGIC MANAGEMENT | 20.12.2017

Creating Long-Term Objectives

It is possible to define long-term goals as specific outcomes that an enterprise would like to
achieve in order to achieve its basic mission (David, 2011: 45). In the long run, the intention
is longer than a year. The objectives are crucial to the success of the business because;

• show directions,

• help to make valuations,

• they create synergy,

• set priorities,

13
• focus on coordination,

• form the basis for the effective planning, organization, orientation and supervision of
activities.

the employees of the business will be able to see in concrete terms how they can contribute
to the business objectives.

businesses can build on their long-term goals and objectives (Hunger-Wheelen, 2011):

• Profitability (net profit)

• Activity (low cost, etc.)

• Growth (sales, increase in total assets, etc.)

• Prosperity of shareholders (profit share plus share value increase)

• Resource use (equity or investment profitability)

• Fame (being one of the leading businesses)

• Contribution to employees (employment guarantee, wages, etc.)

• Collective contributions (tax payments, participation in charitable works, provision of a

necessary product or service, etc.)

• Market leadership (market share)

• Technological leadership (innovations, creativity, etc.)

• Survival (not doing business).

Determination of Strategies

What is critical after determining the goals we want to achieve in the long term is how to
reach these goals. There can be more than one option to reach a goal. Each of these options
has a different superfluous against each other. The important thing is to choose the one that
will make the most of the business and to make the most contribution to reach its final goals.
Strategies come into play at this point.
STRATEGIC MANAGEMENT | 20.12.2017

Strategies are the means, means, that businesses have chosen to achieve long-term goals.
Among the most frequently used business strategies are a geographical expansion, product
development, market penetration, market development, removal of some of the business
assets, exiting certain businesses, creating joint ventures, and so on.

Strategies should be seen as potential actions that are determined by the top management
of the business and that make significant contributions from the resources of the business
(human resources, capital, raw materials, etc.). In addition, the strategies will have an impact
on the business's future average performance for five years. For this reason, the future is
regarded as focussed.

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 STRATEGY APPLICATION

Stratigraphy practice requires an operator to set annual goals, set policies, motivate
employees, and allocate resources to predefined strategies. Activities such as the
development of organizational culture, the formation of an effective organizational structure,
the orientation of marketing efforts, the preparation of budgets, the development and use of
information systems, and the linkage of employee pricing to the performance of the business
are among the steps of strategy implementation.

Strategy implementation is called the action phase of strategic management. Implementing

the strategy implies that employees and managers are mobilized to transform the previously
selected strategies. Successful implementation of the strategies depends on the ability of the
managers to motivate the employees, which is a much more artistic than scientific. Strategies
that are created successfully but can not be put into practice will provide a benefit to the
business.

Inter-personal relationships are also of particularly critical importance for the success of
strategy implementation. The strategy affects all managers and employees in operating
implementation activities. Each department and unit should be well informed about the roles
and responsibilities of the employer in carrying out the strategies and how to carry them out.
The difficulty of the strategy implementation phase is motivating the entire staffed operator to
work proudly and willingly in line with the strategies. One of the activities carried out in the
implementation of the strategy is to form annual referrals, and the other is to determine the
policies.

Strategy Creation

Vision: To introduce all the people of the world to all the tastes of the world.

Mission: bringing people to fresh food in the most effortless way.

External Environmental Analysis: Young, working population continues to increase; the

demand for organic food and healthy ready meals is increasing and people are getting more
and more budget each day; The most appropriate alternative suitable country for investment
in Turkey for foreign investment and economic conjuncture.

Internal Environmental Analysis: An open organizational culture that is appropriate for team
STRATEGIC MANAGEMENT | 20.12.2017

work and innovation; technological superiority; accumulation of capital.

Long-Term Goals: To increase the global market share from 5 percent to 20 percent within 3
years.

Strategy Selection: Creating a joint venture with a Turkish business.

Strategy Application

Yearly Hedeserin Selection: Market share is aiming to reach 10 percent at the end of the
first year, 15 percent in the second year and 20 percent in the third year.

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Creating Policy: under this policy relating to human resources, the presence of persons
residing in Turkey to all employees except the critical few senior managers was preferred.

Strategy Valuation

CFoods changed its strategy of disrupting the partnership and continuing on its own,
thinking that market share predictions were wrong and that there was tissue disagreement
with the Turkish company.

STRATEGIC MANAGEMENT PROCESS ACTIVITY

The strategic plan is a process that determines the work to be done in the future tomorrow
in order to reach the point that the operator wants to be after 10-15 years. At the top of the
strategic plan, when it starts hierarchically, there are the most general expressions of vision
and mission statements, while at the bottom there are detailed action plans. Everyone in the
business has a differentiating role and responsibility in the successful formation and
execution of the strategic plan. But as businesses grow, roles and responsibilities can
become confused or unclear, which will adversely affect the success of the strategic plan.
Some measures may be taken to ensure that the strategic plan works as well as possible.
These measures will be covered under this heading.

A perfect plan from a technical point of view will provide no benefit if it can not be
implemented. Many businesses spend a significant amount of time, money, and effort to
prepare strategic plans, but a number of changes are made to the thinking that comes to
mind later on. In other words, change does not come out of a strategic plan, but in the
implementation and control phase of the plan. However, a plan that is technically incomplete
but successfully applied is more useful than a plan that remains on paper and can not be put
into practice.

Strategic management, on the other hand, should not be a self-functioning bureaucratic

mechanism. On the contrary, managers in operations and employees should be learning
processes that will make them familiar with critical strategic problems and appropriate
solutions in their solution. The strategic management process should be ceremonial,
resplendent and noisy, too formal, not easily predictable or rigid. The process that must
STRATEGIC MANAGEMENT | 20.12.2017

occur from words supported by numbers, rather than words supported by words, should be a
tool for understanding strategic issues and organizational responses developed against
them.

Lenz offers the following for an effective strategic management process (David, 2011, Lenz,
1987):

The strategic planning process must have a jargon or a mysterious planning language that
must be simple and non-routine. This process, which is expected to improve learning and
action, should not be seen as a control mechanism only. Changes should be made in tasks,
team memberships and meeting formats to prevent behavioral behavior that has returned to
the routine. The process should not be completely predictable, but changes must be made in
environments to increase creativity. Focus on verbal expressions supported by numbers. If
managers can not explain one or two paragraphs, they do not have a strategy or understand

16
 it. Encourage thoughts and actions that challenge the main assumptions of existing business
strategies. Also welcome bad news; If the strategy is to process the managers want to learn
the reason for this with great curiosity. Create a corporate culture that understands strategic
management and its primary purposes. Whether or not technical people do not allow the
process to take over is a learning process as a result. It is necessary to pay attention to the
following points in order for the strategic management process to be carried out more
efficiently, including those mentioned above (David, 2011: p.53):

• The process should not only be on paper, it should involve people.

• There must be a learning process for all managers and employees.

• It must consist of words supported by numbers, not numbers supported by words.

• Be lean and out of routine.

• In order to avoid routine behavior, tasks must make changes in team memberships,
meeting formats, and even in the planning calendar.

• Challenges the assumptions that constitute existing business strategies.

• Negative news should be welcomed.

• Open mindset should be open to the spirit of research and learning.

• There should be no bureaucratic mechanism.

• It should not be ceremonial, resplendent and loud.

• It should not be overly formal, predictable or rigid.

• No jargon or a mysterious planning language.

• It should only be a formal system for the control of the business.

• Qualitative information should not be ignored.

• It should not be controlled by "Technicians".

• A lot of strategies should not be followed at once.

• continually support and strengthen the policy of "good ethics, good conduct".
STRATEGIC MANAGEMENT | 20.12.2017

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 Resources
Moseley III, G. B. (2009). Managing Health Care Business Strategy, Jones and Bartlett Publishers,
London.

Cole, G. A. (2004). Management Theory and Practice, South-Western Cengage Learning: Singapore

Swayne, L. E., Duncan, W. J. ve Ginter, P. M. (2008). Strategic Management of Health Care

Organizations, 6. Ed., Jossey-Bass, A Wiley Imprint.

David, F. R. (2011). Strategic Management Concepts and Cases, 13. Ed., Pearson
Education, Inc.

Hitt, M. A., Ireland, R. D., R. E. Hoskisson. (2010). Stra- tejik Management: Concepts,
Competitiveness, and Globalization, 9th Edition. South-Western.

Thompson, J., Martin, F . (2005).

Strategic Manage- ment
Awareness and Change, 5th
edition, Thom-son Publishing.

David, F. R . (2011). Strategic

Management Concepts and
Cases, Prentice Hall, New Jersey.

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