Let's talk about some of the distinguishing features to understand the concept of strategy correctly in terms of business management. It affects the long- term prosperity of business. This inevitably requires change, and sometimes there are radical changes in many aspects of business operations. To improve the institutional capacity of Odan to enable the services provided to the members, to meet internal and external stakeholder expectations, 2.
To increase communication and business cooperation with members, to improve the institutional structures and business capacities of the members, 3. To be effective in solving social and local problems by providing communication and cooperation between institutions 4 main strategic objectives were identified with the main headings.
Highlights of Strategic Management It would be relatively easier to manage an organization that operates in a sector that is fairly static, simple and has a low rate of change. But nowadays, such a sector is almost inexhaustible. This situation confronts strategic management as an indispensable approach to the management of organizations.
Every business fulfills a number of activities designed to create products or services that it orients itself to sell, deliver, or distribute to an individual or corporate customers. Customers also need to be willing to accept, demand, obtain and pay for these products or services. This situation, which is currently in effect, may change over time.
This is because customers may be directed to other businesses as a result of changes in competitive or quality products or services of their competitors or in their wishes and reference frames. This adaptation may require that any part of the organization's operations or orientation be altered.
The product or services may vary; the methods of producing them may vary; products or services may be offered to customers. Stakeholders are the individuals and groups that the employer is influencing and influencing while trying to achieve their goals.
One approach used in the formulation and implementation of strategies is based on the analysis of these individuals or groups for both detection and better understanding. Stakeholders have a significant impact on the success of the business. It is, therefore, one of the concepts related to strategic management. Strategists set the overall objective of the business so that it goes beyond the needs of key stakeholders, not just to meet their known needs.
It clarifies the mission and vision expressions of these enterprises. These groups vary depending on the size of the enterprises, the nature of their activities, and their geographical prevalence. In some cases, government policies, local governments, media, activists may challenge the implementation of a well-defined strategy.
In summary, conducting stakeholder analysis at the beginning allows for better formulation, implementation, and monitoring of the strategies. Stakeholder analysis is a critical factor, especially in the implementation phase when the strategy becomes visible. All the necessary operational systems are designed to sustain the organization's resources, actions and efforts focused on its mission. Many of the company's partners and lenders may not be particularly interested in what the mission is, as long as the response to the offer is sufficient.
The main motivation behind rational strategies is to achieve mission and stakeholder satisfaction, perhaps, even more, to survive. Even if the stakeholders have given up and their mission is not supported, some organizations endeavor to maintain their lives. New emerging laws, changes in the consumer demographics, separation of the retirement of key personnel, will lead to the need for strategy. Appropriate operational arrangements will be made to accommodate these changes; new legislative alignment policies and procedures, adding or subtracting to existing products and services, recruiting new employees and renewing job descriptions.
Though there is no intense pressure from the outside to make it happen, these adjustments will be necessary to make it happen quickly. In the end, every organization has to face a kind of competition. Competition and risk are the natural characteristics of business life for profit-seeking entrepreneurs. Strategic management is about acquiring and sustaining competitive advantage.
Sometimes it is the operator's best when compared to his competitors; sometimes something the operator can do, but his opponents can not do; sometimes it is a desire of their opponents the owner of the thing can show itself as a competitive advantage. For example; we can say that in the period of economic stagnation, a company with large cash holdings has a significant competitive advantage. Having a competitive advantage and protecting it is essential to the long-term success of the business.
The business can only sustain this advantage for a given period, as competitors can imitate or trivialize the advantage they have under normal conditions.
That's why it's not just about getting him. For this reason, they constantly struggle to adapt to their inherent capacities, competencies, and resources, and to changes in the outward trends and events; Under these conditions, they strategically define, apply and evaluate strategically for their winnings. In order to understand strategic management, three theoretical bases must be mentioned. The approach includes the analysis of the operator and its environment SWOT , the formulation, implementation and control of the strategy.
This approach is based on seizing and managing resources that will help the business develop a sustainable competitive advantage. The stakeholder perspective centers the business on the network of contracts formed by mutual benefit relationships.
The effective management of these relationships and the stakeholder network itself can improve competitive performance.
As can be seen, these approaches point to different aspects of gaining competitive advantage, which is the goal of strategic management. Most successful organizations have the resources and talents that provide a competitive advantage. Moreover, they are able to manage and satisfy large segments of the environment known as stakeholders. Because they lead the development of the strategies and the control of the executive. This unit is referred to when it comes to concepts related to strategic management.
You will learn some other concepts in our other units. Here, two concepts must be mentioned in order that strategic management can be understood better. These are basic skills and concepts of strategic intent. The development of strategic management has begun with the long-term planning of the majority of the business sectors.
Most of the long-term planning enterprises appeared in the s. It was very difficult to prepare the activity budgets without any data on future sales and cash flow.
After World War II, economies grew and demand many products and services increased. Long-cycle demand forecasts have facilitated detailed marketing and distribution, production, human resources and financial planning developments for managers of growing organizations. The goal of long-term planning is to estimate the size of the claim to the business's products and services for a specific future timeframe and determine where that claim will emerge.
Many businesses use long-term planning to make decisions such as expanding their investments, hiring forecasts, capital needs, and so on. The underlying assumption of long-term planning is that it will continue to produce the operator's existing products and services, and for that reason, the key critical issue of the enterprise is ensuring consistency between demand and production capacity.
But the underlying assumption of strategic planning is that there are large-scale economic, social, political, technological and competitive changes in the environment.
Although the strategies are usually based on a specific time frame, the primary focus of strategic planning is not on time. Competitive changes can sometimes occur in a few years. In this case, the useful life of existing strains can be shorter. For this reason, "long-term" or "short-term" is preferable to explain the time required to achieve the strategy far from a type of planning. The strategic planning process provided a more systematic approach to managing these business units.
Moving the planning and budgeting horizon beyond the traditional twelve- month operating period. In addition, business managers learned only that financial planning was not a suitable framework.
In the s, the concept of strategic planning expanded as strategic management. This development has revealed that environmental dynamics are not only important but that businesses can rediscover themselves as a whole. Continuous management and evaluation of the strategy is the key to success.
Thus, we can say that strategic management will continue its long-term existence as a philosophy or approach to managing complex organizations Swayne et al. Strategic planning Strategies and strategic decisions are the searches for the future of an enterprise in the long run. Strategic planning takes place at the center. Strategic planning is a disciplined struggle that involves a specific period and produces the main decisions and actions that shape and guide who is who, what they do, why they do it, and what they do.
The organization is a management tool that helps you do your job better. The organization provides the focus of energy; ensure that the members of the organization work for the same purpose; evaluate the organization's direction and, if necessary, reshape it in order to be able to give accurate answers to changing environmental conditions.
This process is strategic. Because the future conditions are already known and unknown, the organization includes the best preparation for meeting these environmental conditions. Being strategic means, for that reason, to be clear about the goals of the organization, to be aware of the organization's resources, and to consciously respond to a dynamic environment.
Planning is a process. This includes developing the desired objectives to be achieved and an approach to achieve those goals.
This process requires discipline because a specific template or a specific sequence is followed in order to be focused and productive.
A number of questions are used in the process flow. These questions help the planners to take advantage of their experience, to test their assumptions, to gather and consolidate the information necessary for both the present and the foreseeable future.
In this whole tactical plan lies at the lower end. An industrial organization may have a strategic plan to expand its current market within two years opening stores in other cities of the country. In accordance with the operational plan to accompany him, he may want to win new clients next year. As a tactical step toward achieving this goal, the marketing department of the business may organize direct mail and television advertising campaigns for a month.
It means that the planning and implementation processes are carried out skillfully; strategic, operational and tactical efforts to integrate seamlessly into all of the forward-looking activities of the organization. The professional management of all organizations, whether for profit or not, requires a strategic mindset, a strategic plan and the implementation of this plan.
Most organizations have a systematic competition form. Similarly, non-governmental organizations struggle to seize potential donations from individuals or corporations by addressing constant, mind, and volunteers. Strategic action is more than just an answer.
The organization must constantly adapt to changes in the external environment. The world of the organization is filled with the stories of closing or changing the organizations that can not see the need for this change or who can not have the mental and material resources to make this change.
Changes within the organization may also require strategic action. For example, the separation of a person in a critical position in a service operation or the separation of the retirement may affect the institution's reputation. In this case, an urgent strategic move may be needed. It may be necessary to take a creative strategic action to find someone instead of this person or to maintain the current position of the business.
From an optimistic point of view, employees are expected to integrate "what" and "what". Since strategic management is the way of organizing or philosophy, benefits can not always be expressed in numbers. Below are the main benefits that strategic management can provide to organizations Dawid, However, it should not be forgotten that strategic management processes can fail for many reasons. Some of these reasons include the following. Figure 2. The strategic management model is not a series that ends after a certain period of time, but rather a cycle.
Having these models alone does not guarantee the success of the business, but it provides a clear and practical approach to the creation, execution, and evaluation of the strategies. The presentation of an enterprise's current vision, mission, objectives, and strategies should be the logical starting point for strategic planning because the current state and conditions of an operator may require the implementation of certain strategies or a certain course of action.
Even if not prepared consciously, written and shared, each business has its vision, mission, goals, and strategy. Depending on our long-term goals, studies are being conducted on which strategic options may be the subject.
Based on certain criteria, it is determined which strategies will give the best results for the business, and that strategy will be put into practice. During the implementation of the strategies, the employees in the enterprise carry out their own activities. For example, the marketing department determines which products, which fiash to sell, and which qualities it should have. The production department begins to produce the products with their features. The projected results must be assessed as a result of the implementation of the selected strategy.
This is actually a feedback. According to the results obtained, some changes will be made on the process and the cycle will continue. Especially with globalization, it is observed that social sensitivities are increasing on the world in some issues. DOI: Swayne and W. Jack Duncan and Peter M. Swayne , W. Duncan , P. Proposed Changes.
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