Strategic management principles
From CEOpedia | Management online
|Strategic management principles|
|Methods and techniques|
Strategic management principles include a wide range of policies, guidelines and best practices to strategic management. Strategic management with the use of these principles leads to better results, faster development and strong market position.
Principles connected to strategic goals
- The principle of expediency - the construction of the system of goal, according to the values that have been approved by the owners and management, the development of the mission and vision of the company, effective action while respecting the principles of business ethics.
- The principle of system approach - the application of the methodology of general systems theory, treating the company as a multi-dimensional system, the desire to achieve and maintain the integrity of all components due to the targets and by obtaining synergies.
- The principle of strategic choice - the use of such criteria for the selection of strategies, which determine the aggregate economic efficiency of the company.
- The principle of the situational approach - creating the appropriate relationship between the company and the environment, the elimination of external conflicts by legally sanctioned competition and rivalry, respect for the adaptive formulas external conditions.
- The principle of global business planning - gives the highest significance for global operations, methods for forecasting, coordination of plans and programs.
- The principle of globalization - switching to the global system of trade and finance, globalization and product research and development.
- The principle of strategic complementarity - maintaining complementarity purposes, eliminating the factors of production with low productivity.
Principles connected to strategic thinking and creativity
- The principle of strategic thinking - the use of a comprehensive strategic analysis, submission of perspective on current objectives, making strategic choices in the context of global business, the implementation of the "4F": Focus, First, Fast, Flexibility.
- The principle of strategic behaviour - using the experience, setting preferences in the selection and order of implementation strategy, anticipation in preparing the organization to changes in the environment.
- The principle of creativity - creating company's own concept of the market, an active impact on the environment.
- The principle of the development of human knowledge - the implementation of the concept of a learning organization, improvement of management methods.
- The principle of using key competencies - seeking to fully exploit the skills of managers and employees, the use of the concept of project management, knowledge management.
Principles connected to strategic change
- The principle of strategic change - fighting the resistance to change, improve organizational culture, the application of modern concepts and research approaches.
- The principle of competitive advantage - productive use of resources, good customer needs, the search for outstanding talent.
- Principle of integration - empowering employees to identify with the company, expanding the autonomy of decision-making at lower levels, the development of a system of responsibility in the area of costs, investments and profits.
- The principle of the development of social ties - the use of social marketing to create a positive image of the company.
Principles connected to information gathering and analysis
- The principle of collecting information about competitors and allies - the creation of a monitoring system in different areas of strategic management.
- The principle of positional analysis - assessment of strategic and competitive position, implementing the concept of benchmarking.
- The principle of reaction in exceptional circumstances - to minimize the loss in critical situations, creating legal and economic security, the use of management by exceptions technique.
- The principle of control - testing the company's financial condition, the use of an early warning system, controlling the implementation of the strategic model.
- Pearce, J. A., Robinson, R. B., & Subramanian, R. (2000). Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill.
- Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
- Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
- Mintzberg, H. (1990). The design school: reconsidering the basic premises of strategic management. Strategic management journal, 11(3), 171-195.
- Porter, M. E. (1981). The contributions of industrial organization to strategic management. Academy of management review, 6(4), 609-620.