Strategic management functions
|Strategic management functions|
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.
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- 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.