A Complete Guide to Strategy Management Theory

Strategic management is the process and approach of specifying an organization’s objectives, developing policies, programmes, paradigms and plans to achieve these objectives, and allocating resources so as to implement the policies, programmes, paradigms and plans.

What is strategy management theory?

The aim of strategic management is to provide an integrated approach to an organization and to provide a set of principles to determine and understand how the organization will compete in the market. Strategic management is one of the most important responsibilities of an effective manager. It consists of specifying the organization’s objectives, developing policies, programmes, and plans to achieve these objectives, and allocating the organization’s resources effectively.

Strategic management is the process and approach of defining, developing, implementing, and monitoring competitive objectives to achieve sustained superior performance.

Types of strategy management theory

Different writers and academics have classified strategies into many different types including:

” Zero sum game ” which is a game in which the potential gain of one party is equal to the potential loss of another party.

which is a game in which the potential gain of one party is equal to the potential loss of another party. “Prisoner’s dilemma” which is a game in which mutual cooperation is optimal. “Risk” is one which changes the value of the game permanently in one player’s favor.

Regardless of the type of strategy, there are several steps that you can follow to help with this process.

1. Analyze your company’s market environment

This first step is quite possibly the most crucial. It will affect how you go about the rest of your strategic management process, and it will affect your company the most. It is important to notice that your strategic management approach uniquely reflects your company’s culture and history.

“The ultimate goal of strategic management is to create competitive advantage and superior performance to maximize long-run, sustainable profitability.”

The objective of strategic management is to create a distinct and meaningful competitive advantage and to position the organization so as to achieve a superior level of performance.
The strategic management process provides a set of planning process and decision tools that help an organization to examine and manage its affairs. Strategic management is a continuous process that requires attention to meet constantly changing internal and external circumstances.

Do not mistake strategy management for a fixed set of axioms. Strategy management is an ongoing process, and focuses on a dynamic environment to ensure that the organization remains effective. Strategic management requires attention at all times.

Strategic management is undoubtedly one of the most important responsibilities of a competent manager.

Strategic management requires the manager to meet constantly changing internal and external environments.

Strategic management is a process with which to examine, manage, and meet constantly changing internal and external circumstances.

The process of strategy management was created as a way to help improve an organization.

Strategic management is a dynamic process that requires attention at all times.

One of the most important responsibilities of any manager would be evaluating the environment your company is operating in, and then strategically managing the organization to success.

Strategic management is the process of planning and decision making that helps an organization to formulate a desired position in the marketplace, and execute it effectively.

Strategic management is the process of specifying an organization’s objectives, developing strategies and plans to achieve these objectives, and allocating resources to implement the strategies and plans.

The strategic management process is used as a tool to plan and implement activities which an organization can use to create a competitive advantage.

Strategic management is the process and approach of defining, developing, implementing, and monitoring competitive objectives to achieve sustained superior performance.

To understand what strategic management is, you must be able to understand the framework of strategic management.

Strategic management provides a set of planning and decision tools that help an organization to examine and manage its affairs.

Strategic management is the process and approach of specifying an organization’s objectives, developing strategies and plans to achieve these objectives, and allocating resources to implement the strategies and plans.

The strategic management process is used as a tool to plan and implement activities which an organization can use to create a competitive advantage.

2. Understanding your objectives

Your objectives define your strategic direction and serve as a starting point for all other strategic management activities. Objectives are stated in ways that make them measurable and specific enough to be achievable.

Managing Objectives:

The objectives should reflect the ability to satisfy the purpose of a business. Strategic management is the process of management, which includes the setting of objectives as well as the strategic management processes performed to achieve this objective. The managerial decisions are required to enhance the economic rewards in future. Strategic management is also known as competitive advantage.

3. Understand your customers and the market

It is important to understand how your company’s customers view your company relative to your competitors, who are their preferred choices, and their reasons for purchasing from you. Staying connected with your customers is critical to maintaining a competitive advantage.

4. Review your firm’s strengths and weaknesses

It is important to review your company’s strengths and weaknesses relative to your competitors and, if possible, competitors that do not yet exist. This will help you determine how you will compete in the market.

5. Understand and overcome your threats

It is critical to identify and overcome threats which are not present today, but could become a threat in the future. You must project ahead to possible developments which are important to your company, but are not yet an issue to your competitors.

6. Understand and overcome your opportunities

It is important to identify opportunities that present themselves and you know how to take advantage of these opportunities. You know how to take advantage of these opportunities because you have conducted research on the potential trends in the market and industry.

7. Developing strategies

The objective of strategic management is to create competitive advantage and superior performance to maximize long-run, sustainable profitability. Strategic management is the process and approach of specifying competitive objectives, developing a framework to achieve these objectives, and allocating resources to implement the framework.

Strategy management process

Strategic management is a proactive approach that requires managers to remain attentive to changing internal and external market conditions. The process requires managers to perform the following steps continuously.

• Identifying opportunities for value creation in the long-run
• Generating alternative strategies for the development of the organization’s competitive advantage
• Selecting appropriate strategies in light of the organization’s resources
• Implementing the selected strategies
• Controlling the execution and consequences of the selected strategies

However, the process of strategic management is not an easy job. Strategic management can be a sensitive area and can be impacted by a lot of uncertainties, here is a no fail strategic management plan for you.

Step 1: Know yourself

There are a few questions you need to ask yourself, here are some of them:

• Do you know what you are best at?
• Do you know what you are worst at?
• Do you know what you are most interested in?
• Do you know what your passions are?
• Do you know what your values are?
• Do you know what your weaknesses are?
• Do you know what your strengths are?
• Do you know what your customers want?

Step 2: Know your stakeholders

You need to define your stakeholders which may include stakeholders like government, banks, customers, suppliers, employees, shareholders, etc.

Step 3: Identify your competitors

You need to identify your competitors, their strengths, why they succeed and why you may sometimes fail to succeed.

Step 4: Identify your needs

You need to determine your goals, priorities and needs.

Step 5: Determine the risks

People will always be skeptical about your strategic plans, you have to develop a risk plan; after these steps, you need to seek support from your stakeholders and explain to them that your strategic management plan is the right way to proceed.

In Conclusion:

The goal of every manager should be to ensure the highest and best use of your company’s resources for both the short-term and the long-term objectives. Strategic management must be the force that drives the organization.

Strategic management is a very organized and designed process to plan and to decide, to ensure the achievement of the goals and objectives of an organization.

To get the most effective benefits from the process, strategic managers must be able to make clear distinctions between strategic and operational decisions. Strategic decisions focus on an organization’s strategic objectives and require that top managers have a clear understanding of the long-run future.

Strategic management can be defined as “the process and approach of specifying competitive objectives, developing strategies and plans to achieve these objectives, and allocating resources (human and financial) to implement the strategies and plans.