...Ashley Johnson Strategic Management 05/09/2013 Key Concepts For Strategic Management Strategic Management is the process in which an organization develops and implements plans that espouse the goals and objectives of that organization. The process of strategic management is a continous one that changes as the organizatinal goals and objectives evolve. Several key concepts characterize strategic management and the development of organizational goals. At the core of strategic management process is the creation of goals, a mission statement, values, and organizational objectives. The creation of these guides the organization in its pursuit of strategic opportunities. Through goal setting, organizations plan how to compete in an increasingly competitive and global business arena. The next key concept is Analysis strategy formation. Analysis of an organization's strengths and weaknesses is a key concept of strategic management. Other than the internal analysis, an organization also undertakes an external analysis of factors such as emerging technology and new competition. Through internal and external analysis, the organization creates goals and objectives that will turn their weaknesses into strengths. The analysis also facilitates in strategizing ways of adapting to changing technology and emerging markets. The third concept is strategy formation. Strategy formation is a concept that entails developing specific actions that will enable an organization to meet its goals. This...
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...The second step concerns alternate plans and goals. This means that optional methods and goals are explored for future endeavors. Goals fall into categories known as SMART, which stands for specific, measurable, and time-bound. Plans are the methods used to achieve the goals set. Step three of the planning process entails managers reviewing the pros and cons of the plans and goals set. This is the point when managers establish priorities and eliminate potential risks. The fourth step is called the goals and plans selection, which means the best course of action is determined for reasonableness and feasibility. Implementing the plan is the fifth step, and this involves putting the plan into action. The action over a reasonable tome period will reveal if the plan needs changes, and specifically where. The last planning step is to monitor and control the process implemented to see if the action for the plan work s well enough to sustain the goal for the desired term. Planning also has different types as well as steps. Strategic planning is used for long-term planning. This allows a company to plan strategies for long-tern economic survival through strategic goals. Tactical and operational plans are implemented after strategies and strategic goals are determined. Tactical plans apply to middle managers and operational plans apply to frontline managers. The difference is that tactical planning is a broader strategic goal, and operational strategies require...
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...The Strategic Management Process Strategic management is a group of actions and decisions created by a management team to help determine the long range outcome of the company. In this paper one will learn about the four phases of the strategic management process as well as why it is important for companies to have one. Basic financial planning Phase one of the strategic management process is Basic Financial Planning. The basic financial planning phase is also known as the formulation phase in the strategic management process because it is during this phase where the company forms and develops a well thought out strategy to help achieve the company’s main objectives for the next year and then propose a budget and develop a strategy based on little information from the sales force. While this phase is generally tackled by top executives and senior management it is often left for general management to complete. Forecast-based planning Phase two of the strategic management process is Forecast Based Planning. The forecast based planning phase is also known as the implementation phase of the strategic management process and its purpose is to take one project at a time from the proposed strategy and implement it into the workforce starting with senior management and working down to standard employees. This is a very time consuming part of the process as management will continuously collect feedback from others working on the project as well as they need to make sure that they...
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...Reflection Paper This reflection paper describes three large sections of the author trying to convey. These three parts are Strategic Management from the writer’s point of views, Strategic Management from the participants or students’ perspectives in class discussions and application Strategic Management in everyday life, especially in the military context. 1. Strategic Management from My Point of Views Before implementing a selected strategy from several alternatives, we should carefully analyze and consider the selected strategy. Strategy analysis can take a longer time before coming to the decision-making process. The intention is that an organization will be on the effective condition and position in attempting created goals and objectives in various influences from internal as well as external factors. Sometimes internal and external factors change the level of intensity and urgency in conducting certain kinds of strategic decisions completely. The orientation of such specific strategies based on various assumptions is related to the assumption which has been used by the planner, in this case, a manager or leader in an organization to produce a decisive strategy. Managers or leaders have to fully aware that all consequences from the implementation of the strategy are being measured and estimated appropriately. After an organization formulating their strategy, then the working units in the organization can set some technical ways in conducting the strategy. The next step...
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... There are three types of goals important to the strategy of an organization. These goals include strategic goals, tactical goals, and operational goals. Strategic goals are essentially goals that focus on the overall operational objective and are typical set for and by senior management (Kinicki and Williams, 2016). An example of a strategic goal from a Fortune 500 company such as Walmart, and is clear in their mission statement, “We save people money so they can live better” (Walmart, 2015). Strategic goal planning is of vital importance to an organization because it defines the objective so that tactical and operational goals can be established. From a tactical goals perspective, these goals focus on the required actions necessary to achieve the desired goal. The tactical goals are not only set by middle management, but they are also used by middle management (Kinicki and Williams, 2016). An example of a tactical goal also using the Fortune 500 Company, Walmart, would be to look at the objective, to save people money so they can live better. From a tactical perspective, Walmart middle managers must determine what actions will be required to achieve this goal. Additionally, determining how long it will take to complete a goal as well has the number of staffs required to meet the goal is part of tactical planning. Walmart's mission statement also includes their plan on saving people money so they can live better. According to Walmart (2015),...
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...budget set forth for 2013. 3.3 billion of that is to be used towards growth projects and half to the exploration and production segment. “Growth capital plans in the Oil Sands are balanced between advancing development plans for Oil Sands Ventures, building new infrastructure to enhance marketing flexibility and takeaway capacity, and commencing work on a variety of debottlenecking projects.”(1) Suncor is adding to their resources to ensure they remain profitable, as well as to increase profits, into the future. “Suncor continued to return cash to shareholders through dividends and share repurchases. The company repurchased $408 million of its common shares in the fourth quarter of 2012, and returned more than $2.0 billion to shareholders through share repurchases and dividends in 2012.” (1) With this much value on their returns it seems as if Suncor’s approach is working, the resource-based approach is adding value to the company that is being returned to the stakeholders. The type of company you are running will decide which approach will work best. With a goal based approach the company would decide how well they are doing based on whether or not they reached goals that they set. The internal process approach determines how well the company is doing based on the internal workings of the company. The strategic constituents based approach lets the stakeholders decide how well the company is performing. If shareholders, employees, customers, creditors, and the community...
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...Goodyear Financial Analysis Writing Assignment: Financial Analysis Assume you are a savvy financial analyst researching companies in which to invest. Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis. FIN 534: Financial Management - Quarter (Winter 2013) Professor: March 12, 2013 Goodyear Financial Analysis Company Overview The Goodyear Tire & Rubber Company a leading manufacturer of tires is one of the best in the world and one of the most recognizable brand names in the world (Edgar). Goodyear has operations in most regions of the world with 52 manufacturing facilities in 22 countries, including the United States (Edgar). Goodyear regional tire businessesconsists of the following four segments: North American Tire; Europe, Middle East and Africa Tire; Latin American Tire; and Asia Pacific Tire (Edgar). Despite the conditions in 2012 Goodyear has done fairly well in the continued weak industry conditions (Edgar). The economic recovery in the developed markets and the uncertainty surrounding debt and other fiscal policy issues in Europe and the U. S. and along with continued high levels of unemployment, all have contributed to a negative impact on overall economic conditions and customer and consumer confidence. Goodyear tire unit shipments in 2012 only decreased 9.2% compared to 2011, primarily as a result of continued weakness in Europe (Edgar). In addition...
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...Question one Environmental analysis of the global steel industry The environmental analysis of the industry involves the identification and explanation of the environmental factors and variables which affects the industry as a whole. It involves carrying out the SWOT analysis of the industry. Therefore in this paper I will analyse two major environmental variables evident in the Severstal steel industry which include opportunities and threats. The main core competitors for the severstal steel companies are the international steel players such as china, South Korea and many others. Other competitors in the industry include the Arcelor Mittal who is the largest producer of steel, Larkish Mittal who is also a chief producer of steel are the main chief competitors of Severtal group steel company. The main threats which have been experienced by the Severstal groups steel companies are numerous and they include the existence of huge demand variations in the regional markets making planning hectic. There is also threat to entry to these lucrative markets by international steel players. The industry is also fragmented despite many mergers it has formed with others. The industry concentration has also been a major cause of rivalry in the steel industry causing many threats to Severstal steel companies. Despite the enormous threats and the market rivalry in the market, the Severstal steel companies have experienced many opportunities which include, the upcoming markets of Africa,...
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...want to start. What is strategic management and planning? Why would a strategic plan be important to the success of this business? How are the four functions of management relative to creating and implementing a strategic plan? • Select a small business that you may want to start. The small business that was select is Day Spa Spa is an oasis of tranquility, and relaxation, and offers a complete day spa experiences. • What is strategic management and planning? Strategic management is the groundwork for a company’s vision and allows a company to be ready to capitalize on opportunities. Strategic management is a process of evaluating a company’s mission, establishing the company’s design, developing the company’s organization and relationships, and guiding the company’s plan to execution to ensure that the management is consistent with the company’s strategy (Pearce & Robinson, 2009). Strategic planning is the process of determining a company’s long-term goals and determines the best approach to achieve the goals. Strategic planning is matching the strengths of the business to available opportunities. Understanding the business strengths and weaknesses and develop a clear mission, goals, and objectives. • Why would a strategic plan be important to the success of this business? Strategic planning plays an important role in Day Spa because it can make the difference between the success and failure of the business. Another important step in the strategic planning for Pamperize...
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...set the long term vision and mission of the organization. These are known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives. While fixing the organizational vision and mission, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of mission. Once the mission and the factors influencing strategic decisions have been determined, it is easy to take strategic decision. The second and third steps are identifying an organization’s external opportunities and threats and determining internal strengths and weaknesses. These are to evaluate the general economic and industrial environment in which the organization operates. This includes a review of the organizations competitive position. It is essential to conduct a qualitative and quantitative review of an organizations existing product line. The purpose of such a review is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their own...
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...elaborate on the information I used in my journal entry, I believe one of the main benefits of strategic management is one company would have an advantage; they would be able to increase their market shares and grain profits over other companies. As well as have a greater ability to avoid problem in the long run with assuring that those people with issues regarding adapting to changes have a smoother transition. And lastly all of the members of the team will have clear understanding on what the mission is as well as what part they have to play thus eliminating any crossover in activities. (Pearce, Robinson 2011) However, before upper management move forward with strategic management they should weight all of the pros and cons. This method of looking at the hold picture from start to finish, the good as well as the bad, will ensure a smoother flow within the project. A disadvantage of this would be that a lot of the companies allocated resources like people, money and time just to name a few, would have to be utilized leaving other parts of the business with little activity. Another would be that the primary strategists involved in this project have to stay engaged every step of the way, if not the project runs the risk of being delayed because they may start to neglect their part of the project thus holding up everyone else. (Pearce, Robinson 2011) Some of the main components of the strategic management process would be the company’s mission, their long term objectives and what...
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...determination and excellent leadership skills. Aaron Feuerstein was determined to save his fourth production building from being engulfed in flames like his other three had. Mr. Feuerstein knew that saving the last building was critical in saving his company. He strategically devised a plan and put it in motion to not only save his company, but the jobs of his three thousand employees. The owner of Malden Mills was very organized and strategic in his efforts to save his company. The short term goals were met and he continued to tackle other obstacles that the company faced. He was not only concerned about himself or his company, but also for the people that he employed. He understood the negative outcomes for his employees if the company failed and was determined to keep them motivated and working. The relationship with his customers was extremely important to Mr. Feuerstein, and he knew that he would have to have production up and running to keep them satisfied. Sheer determination coupled with business savvy and leadership skills allowed Aaron Feuerstein to save his company and return to his previous financial status in only a matter of two years. Aaron Feuerstein protected his employees by doing everything in his power and control to save the company. He knew that if the fourth building burned down then there would be no way to save the company. By doing everything possible to save the fourth building, he was ultimately saving the jobs of his three thousand employees. Mr. Feuerstein...
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...discovered and discussed are strategic planning, organization, finance, project management, a project team, and project resource allocation and are presented in the information below with recommended resolutions. Week 1 Issues Issue #1 The first issue identified by Strategy One is in the area of strategic planning. CanGo has been a successful company to date by being a trail blazer and leader in the online retail resource vertical. In order for CanGo to continue its success, remain a leader and expand its offerings, strategic planning must be implemented in the management of the company. “The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan. Existing businesses that have already developed a strategic management plan will revisit these steps as the need arises, in order to make necessary changes and improvements.” (Bushman, 2007) There is an admitted lack of planning in the current organization. By documenting the trending in what has been successful; CanGo will be able to remain an industry leader as long as this planning is a priority in deciding the future vision of CanGo. Issue #2 The second issue identified by Strategy One is in the area of organizational planning and goals. CanGo’s management and employees have already expressed plans and ideas that will keep...
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...Strategic Planning for a Business MT:460 Management Policies and Strategies – Unit 1 Assignment Katie Bingaman For any company or business to be successful, they will need to have a strategic plan. There are many different components that a business needs to involve to have a strategic plan. The vision, mission and as they say out-of-the-box thinking are different ways to come up with the strategic plan. Without determining where you are headed with a company can be meaningless and by having this strategic planning in process can help you know where your company is heading. (Pirraglia, 2016) Using the SWOT analysis is a good way to prepare for when you are developing your strategic plan. The SWOT analysis determines the Strengths, Weaknesses, Opportunities and Threats that come with have a business or company. By understanding the SWOT analysis it is a good start block to determine what your strategic plan is for your company. (Pirraglia, 2016) The three-tier organizational structure is a hierarchical method used for a large, wide-spread organization and it helps to separate the top-level decision makers. The different top-level decision makers would be the board of directors, the chief officers of financial and the chief officer of operations. When referring to a three-tier it is generally saying that information is able to flow both ways; from between staff and managers and also between then the managers and the executive levels. When working with this structure, managers...
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...Strategic Plan Overview: American Management Association Jennifer Socorro Strategy Formulation and Implementation – MGT 578 Sharon Palmitier – Facilitator July 2, 2007 Overview The following strategic plan overview will focus on the American Management Association (AMA), where I am employed as an eMarketing Strategist. AMA “is a world leader in professional development and performance-based learning solutions” (AMA, About AMA, 2007). The bulk of our business is focused on corporate training via public seminars. As a member-based not-for-profit organization, we are devoted to helping the business community by ensuring that businesspeople are equipped with the skills necessary to thrive in today’s challenging and dynamic business environment. We offer over 170 seminars which can be attended at locations throughout the United States or delivered on-site at any organization. As was mentioned above, our customers are businesspeople interested in career development and organizations interested in developing their human resources in order to gain a competitive advantage and help them prosper within their industry. A company’s mission statement “answers the question “What business are we in?” (Pearce & Robinson, 2005, p. 37). Pearce and Robinson describe the following components as those to be included within an effective mission statement: customer market, product service, geographic domain, technology, concern for survival, philosophy, self-concept, and concern for...
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