Strategic Management - Promoting innovation: planning and process

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The top management team must take into account the competing desires and needs of an organization's various stakeholders, because their support is essential for successful strategy implementation. Stakeholders include not only the organization's managers and employees, but also the firm's owners (stockholders), suppliers, customers, creditors, and community members. As domestic and foreign competition intensifies, and during those periods when government's influence on business operations expands, an understanding of strategic management becomes even more essential. Employees, supervisors, and middle managers must also be familiar with strategic management. An appreciation of their organization's strategy helps them relate their work assignments more closely to the direction of the organization, thereby enhancing their job performance and opportunity for promotion, and making their organization more effective.

Extraits

[...] The strategic question to be answered in selecting functional strategies becomes: can we best apply functional expertise to serve the needs of the business unit or organization”. Strategic Management This level focuses on action plans for managing a particular functional area within business in a way that supports the business-level strategy. Strategies at this level address main directions for each of the major functional areas within a business, such as manufacturing or operations, marketing, finance, human resources management, accounting, research and development, and engineering. Functional strategies usually are developed by functional managers and are typically reviewed by business unit head. [...]

[...] Today, annual revenues top $100million. This is partly because Tour now owns, operates, or licenses more that 13 courses and clubs used each year for tour events; the remainder of the time, the courses and clubs are available to members, who paid dues. Thus, tour has not only become its own supplier of sites for tournament but also receives dues revenues; in addition, it often gets clothes to 20% of the gains from residential development on certain properties next to courses. [...]

[...] Money obtained from selling off dogs can be used to buy or finance question marks. High Question Marks poor competitive position in a growing industry. Recommended strategy = growth or retrenchment; apply resources to accomplish positive turnaround or pull back if outlook poor. Stars dominant competitive position in a growing industry. Recommended strategy = growth; add resources and build the business further based upon market projections. Market Growth Rate for SBU Products/Services Dogs poor competitive position in low growth environment. [...]

[...] It requires work, now.” A major element of the work with which Drucker is so concerned is strategic management. Strategic Management : Strategic management is the process of planning a firm's long-term course of action, managing its comprehensive resources, and fulfilling its mission within its broad environment. Those involved in strategic management include members of the board of directors, senior operating officers, and, in larger firms, planning specialists and consultants. The process of leading the strategic planning effort and ensuring that strategies are well implemented is strategic management. [...]

[...] This strategy is suited only for a stable environment and perhaps declining industries. Defenders tend to ignore developments and trends outside their narrow niche, choosing instead to grow through market penetration and some limited product development. Over time, true defenders are able to carve out and maintain small niches within their industries that are difficult for competitors to penetrate. Within this limited niche, defenders strive aggressively to prevent competitors from entering their This strategy tends to be achieved through standard economic actions such as competitive pricing or creation of high quality products or services. [...]