Strategic management functions

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Strategic management functions
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    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

      Fig. 1. Strategic management functions
      1. Determining the purpose of company.
      2. Creating a mission and vision:
        • setting the vision of future state of organization,
        • selecting the methodology for mission formulation,
        • formulation of mission statement,
        • preparation of a portfolio of projects for implementation of the mission,
        • implementation of the mission and objectives of the organization.
      3. Formulation of rules defining the competitive position in the company's political, legal, economic, social, technological and natural environment:
      4. Developing a strategy for the company as a whole
        • identification of policy options,
        • deciding on the criteria for evaluation of policy options,
        • analysis and selection of optimal policy option,
        • translating policy to functional strategy of company.

      Strategic market segmentation

      1. Identification of the strategic segments.
      2. Developing a coherent market segment strategy.
      3. Creating a decentralization policy.
      4. Designing and implementing policy and strategy for chosen segments.

      Creating comprehensive strategic control system

      1. Defining assumptions for strategic control.
      2. Selection of criteria for the evaluation.
      3. Implementing control methods and techniques.
      4. Improving the strategic control model.