REGUNAYAN, MARCO PAUL C.

CBET – 01 – 602P

ACTIVITY 1
SEARCH ON
1. What is strategic management and why is it important?
Strategic management is the art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an organization to achieve its objectives.
It is also the process of building capabilities that allow a firm to create value for
customers, shareholders, and society while operating in competitive markets.
Strategic management is important because it allows an organization to be more
proactive than reactive in shaping its own future. It allows an organization to initiate and
influence, rather than just respond to, activities and thus to exert control over its own
destiny.

2. What do you mean by strategic management?

For me, strategic management is the set of decisions and actions used to
formulate and implement strategies that will provide a competitively superior fit
between the organization and its environment so as to achieve organizational goals.
Strategic management is a process used to help managers answers strategic
questions such as “Where is the organization now? Where does the organization want
to be? What changes and trends are occurring in the competitive environment? What
courses of action will help us achieve our goals? Through strategic management,
executives define an overall direction for the organization, which is the firm’s grand
strategy.

3. What are the five stages of strategic management process?

The strategic management process consists of five stages: goal-setting, strategy
formulation, strategy implementation, strategy evaluation and strategy monitoring.
The purpose of goal-setting is to clarify the vision for your business. First,
define both short- and long-term objectives. Second, identify the process of how to
accomplish your objective. Finally, customize the process for your staff, give each
person a task with which he can succeed.
Strategy formulation includes the planning and decision making that lead to the
establishment of the firm’s goals and the development of a specific strategic plan. It may
include assessing the external environment and internal problems and integrating the
results into goals and strategy.
Strategic implementation is the stage of strategic management that involves the
use of managerial and organizational tools to direct resources toward accomplishing
 strategic results. Strategy implementation is the administration and execution of the
strategic plan.
Strategy evaluation is the final stage in strategic management. Managers
desperately need to know when particular strategies are not working well, strategy
evaluation is the primary means for obtaining this information.
Monitoring internal and external issues will also enable you to react to any
substantial change in your business environment. Because internal and external issues
are constantly evolving, any data gained in this stage should be retained to help with
any future strategies.

4. What are the types of strategic management?

Based on my research, there are three types of strategic management: Corporate
Strategy, Business Strategy and Functional Strategy.
First, corporate strategy pertains to the organization as a whole and the
combination of business units and product lines that make up the corporate entity.
Strategic actions at this level usually relate to the acquisition of new businesses,
additions or divestments of business units, plans, or product lines, and joint ventures
with other corporations in new areas.
Second, business strategy pertains to each business unit competes within its
industry for customers. Strategic decisions at the business level concern amount of
advertising, direction and extent of research and development, product changes, new-
product development, equipment and facilities, and expansion or contraction of
product lines.
Lastly, functional strategy pertains to the major functional departments within
the business unit. Functional strategies involve all of the major functions, including
finance, research and development, marketing, manufacturing, and finance.
Reference:

Daft, R. L. (2015). Management (4th ed.). New York, USA: The Dryden Press.