Strategic Management

SUMMARY
BANIQUED, MARJORIE B.
The concept of strategy refers to the managerial action plan for achieving organizational objectives. In
effect, strategy is a management tool for achieving strategic targets.

The nature of strategy is the blend of internal and external factors. Strategy is the combination of
actions aimed to meet a particular condition, to solve certain problems or to achieve a desirable end.

The components of strategy the four most widely accepted key components of corporate strategy are
visioning, objective setting, resource allocation, and prioritization. The Strategic Intent Elements serve to
unify the ideas and resources towards a certain direction.

Strategic Business Unit (SBU) implies an independently managed division of a large company, having its
own vision, mission and objectives, whose planning is done separately from other businesses of the
company.

Benefits of strategic management provides overall direction by developing plans and policies designed
to achieve objectives and then allocating resources to implement the plans. Ultimately, strategic
management is for organizations to gain a competitive edge over their competitors.

The external environment is the factors outside a business that can affect its operation by influencing its
activities and choices and determine its opportunities and risks. External environment factors are
important because they can cause direct and indirect effects on business operations, personnel and
revenue.

Understanding the industry’s life cycle refers to the evolution of an industry or business based on its
stages of growth and decline. The four phases of the industry life cycle are the introduction, growth,
maturity, and decline phases.

Understanding competitive dynamics emanate from a sequence of attacks and counterattacks among
firms in an industry. Competitive dynamics is the set of actions and responses taken by all firms that are
competitors within a particular market.

The process of competitor analysis is the process of identifying your competitors and evaluating their
strategies to determine their strengths and weaknesses relative to your own business, product, and
service.

The internal environment refers to all the inlying forces and conditions present within the company,
which can affect the company's working includes factors that the organization controls. For example, the
organization's culture, product development, mission and strategy are all part of the internal
environment.

Identifying strategic alternatives are developed to sets direction in which human and material
resources of business will be applied for a greater chance of achieving selected goals.
Foreign Direct Investment is significant for developing economies and emerging markets where
companies need funding and expertise to expand their international sales.

SWOT analysis SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
analysis is a technique for assessing these four aspects of your business. SWOT Analysis is a tool that can
help you to analyze what your company does best right now, and to devise a successful strategy for the
future.

Strategy implementation refers to the process of executing plans and strategies. These processes aim to
achieve long-term goals within an organization.

Strategic control may involve the reassessment of a strategy due to an immediate, unforeseen event.
For example, if a company's main product is becoming obsolete, the company must immediately
reassess its strategy.