Components of Strategic Management

Solution Preview

1. What are the definition and nine critical tasks of strategic management?

Pearce and Robinson (1991) have defined strategic management as "the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives".

It includes nine critical tasks:

? Formulate the company's mission, including broad statements about its purpose;
? Develop a company profile that reflects its interval conditions and capabilities;
? Assess the company's retrieval environment including the competitive and general contextual factors;
? Analyze the company's options by matching the resources with the external environment;
? Identify the most desirable options, by evaluating each option in light of the company's mission;
? Select a set of long-term objectives and grand strategies that will achieve the most desirable options;
? Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies;
? Implement strategic links by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies and reward systems is emphasized;
? Evaluate the success of the strategic process as an impact of future decision-making
(Pearce & Robinson, 1991).

2. Describe the components of an SWOTT analysis?

SWOT is an acronym for an organization's strengths, weaknesses, opportunities, and threats. A SWOT analysis consists of evaluating an organization's internal strengths and weaknesses and its external opportunities and threats. A SWOT analysis is broken into two main components -- internal issues (strengths and weaknesses) and external issues (opportunities and threats). It is a valuable strategic planning tool, because it focuses on the key ...