Strategic Management def, reference and example
How does strategic management typically evolve in a corporation
Why are strategic decisions different from other kinds of decisions?
Strategic Management def, reference and example
Strategic management is a process where an organization creates its goals and objectives. Management
of the organization engages in strategic decision making which may, for example, revolve around things
like meeting sales target, generating high revenues, tackling increasingly difficult competitions, entering
new markets etc. While this management process may differ from organization to organization, the
purpose is almost same i.e., to help the organization attain a sustainable and competitive advantage in
the market. According to De Wit & Meyer (2010), “Strategy: Process, Content, Context, An International
Perspective”, Strategic management is a process of defining an organization’s strategy by which a set of
viable strategies to facilitate and enhance the organization’s performance is selected.
Let us take an example of Coca Cola company to understand how strategic management evolve in a
corporation. The company has adopted a 4-step strategic management process for achieving a sustained
business success. The steps are: 1. Environment Scanning, 2. Strategy Formulation, 3. Strategy
Implementation, 4. Strategy Evaluation.
Environmental scanning is reviewing of the information from its internal (strengths and weaknesses) and
external environments (for example, opportunities and threats etc.) and disseminating to key people
within corporation. [Textbook reference]. Coca Cola company continuously analyzes its current and
potential business environment before launching its business . Being a global business, to facilitate its
expansion, the company scrutinizes religious sentiments, tax policies, labor laws, environmental laws
etc.
Strategy Formulation is developing specific actions so that the best course of action to achieve
organizational goals and objectives can be accomplished (Hill & Jones, 2009). The strategy formulation
for Coca Cola begins with setting up of a mission and vision statement. The mission statement brings
clarity among all the participants such as internal, external parties and the stakeholders about the road
map. The vision statement focusses on being a low cost, high sales and retaining customer loyalty.
Strategy Implementation is the execution of the stipulated strategies to meet the goals and objectives of
the organization. The key is to gather all the available and essential resources (budgeting, financial,
human, logistics etc.) to bring the plan in action. Coca Cola company achieves its implementation by
ensuring effective quality management systems and process to guide its operations. The control
framework and quality control are part of the strategy implementation undertaken by the company.
Strategy Evaluation is simply monitoring the strategy post execution. This also includes assessment of
the key performance indicators to determine whether the anticipated results have been achieved. Coca
cola performs appraisals of the environment then takes the corrective and preventive actions to
eliminate the systemic issues. This is achieved by conducting remedial actions, measuring performances,
customer feedback etc.
Strategic decisions are different as they have a long-term impact and target a definite outcome. They are
more complex, require careful planning and are resource intensive. They facilitate making day to day
selection, have the capability of influencing outcomes as wells as place competitive advantages.
References:
De Wit, B., & Meyer, R. (2010). Strategy: Process, Content, Context, An International Perspective. New
York, NY: Cengage Learning EMEA.
IvyPanda. (2021, July 22). Strategic Management: The case of Coca-
Cola. https://ivypanda.com/essays/strategic-management-the-case-of-coca-cola/
Hill, C., & Jones, G. (2009). Strategic Management Theory: An Integrated Approach. New York, NY:
Cengage Learning.
