Strategic management functions
|Strategic management functions|
|Methods and techniques|
Strategic management functions consist of specific methods and techniques used in the different stages of the strategic management process: analysis, planning, implementation and strategic control. Summary of various management activities (functions) used in the strategic management process is presented below. See also Category:Strategic management for broader description of the methodology and detailed description of strategic management functions.
Formulating business strategy
- Determining the purpose of company.
- Creating a mission and vision:
- Formulation of rules defining the competitive position in the company's political, legal, economic, social, technological and natural environment:
- determination of reasons for the existence in business environment,
- identification and analysis of environmental variability (i.e. using PEST analysis),
- forecasts of future state of the environment,
- identification of opportunities and threats,
- determination of the company resources and its changes,
- simplification of company policy,
- implementation of company policies.
- Developing a strategy for the company as a whole
Strategic market segmentation
- Identification of the strategic segments.
- Developing a coherent market segment strategy.
- Creating a decentralization policy.
- Designing and implementing policy and strategy for chosen segments.
Creating comprehensive strategic control system
- Defining assumptions for strategic control.
- Selection of criteria for the evaluation.
- Implementing control methods and techniques.
- Improving the strategic control model.
- Daft, R. L., & Macintosh, N. B. (1984). The nature and use of formal control systems for management control and strategy implementation. Journal of Management, 10(1), 43-66.
- Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
- Galbraith, J. R., & Kazanjian, R. K. (1986). Strategy implementation: Structure, systems, and process (Vol. 1). New York, NY: West Publishing Company.
- Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
- Homburg, C., Krohmer, H., & Workman, J. P. (2004). A strategy implementation perspective of market orientation. Journal of Business Research, 57(12), 1331-1340.
- Mintzberg, H. (1990). The design school: reconsidering the basic premises of strategic management. Strategic management journal, 11(3), 171-195.
- Pearce, J. A., Robinson, R. B., & Subramanian, R. (2000). Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill.
- Porter, M. E. (1981). The contributions of industrial organization to strategic management. Academy of management review, 6(4), 609-620.