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1STRATEGIC MANAGEMENTStrategic managementis the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It is the process of specifying the organization's objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives. Strategic management, therefore, combines the activities of the various functional areas of a business to achieve organizational objectives. It is the highest level of managerial activity, usually formulated by the Board of directorsand performed by the organization's Chief Executive Officer(CEO) and executive team. Strategic management provides overall direction` to the enterprise and is closely related to the field of Organization Studies.“Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” (Lamb, 1984:ix)Strategic management is a combination of three main processes namely; 1) strategy formulation2) strategy implementationand 3) strategy evaluationStrategy formulationinvolves:•Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. •Concurrent with this assessment, objectives are set. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.
2•These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives. This three-step strategy formulation process is sometimes referred to as determining where you are now, determining where you want to go, and then determining how to get there. These three questions are the essence of strategic planning. SWOT Analysis: I/O Economics for the external factors and RBVfor the internal factors.Strategy implementationinvolves:•Allocation of sufficient resources (financial, personnel, time, technology support) •Establishing a chain of command or some alternative structure (such as cross functional teams) •Assigning responsibility of specific tasks or processes to specific individuals or groups •It also involves managing the process. This includes monitoring results,