Strategic Management
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Strategic Management is a process of evaluating managerial decisions and actions that enable an organization to reach its maximum performance level and company objectives. The process allows specification of the mission, vision, and objective policy and plan development. The strategic process involves the four functions of management which provides a common vision for the whole organization. Strategic Management is an ongoing process that controls and evaluates the business and the industry, the company is involved; it access competitors, set goals and meet existing and potential competitors. The strategy is accessed annually. This process involves a series of steps that formulate the strategic planning, implementation and evaluation.
Most companies use five components The Vision which lead to the mission statement, The Mission is converted into performance objectives. In order to reach the objectives a strategy should be developed; then strategy implementation the take place.
Interpreting the corporate strategic applications into deeds that are positive and thriving is the closing component of the strategic organizational development. The principal portion of the makeover development is to justify the business bargain is intended and structured in a mode that will eventually lead to an acceptable execution of the strategic proposal. This means warranting capitals are in the accurate position and, further importantly, that group effort and connection amongst the constituent parts of the company are skillful coordinated.
General Electric is one of the innovators of strategic advancement and led the progression from strategic forecasting to strategic managing during the 1980s (Wheelen & Hunger, 2008). The end result of General Electrics continuous, unceasing reinvention image of the company regardless of the fact that organizations are repetitively imitating General Electric; they are consistently a stride or more behind.
GE advances people, evaluate them, and carry out on the results. The organization takes much criticism for getting clear of the lowest ten percent of its personnel annually, but it is only the end idea of a method of continuous appraisal. The personnel that are released of their duties are not surprised when released. The end result is an astoundingly high implementation organization. The capability to command great performance without being brutal or insensitive is General Electrics rule of thumb for quite some time. Many organizations, candidly, do not have the guts to give recurrent, demanding assessments — and to release those who have to go for the better of the company (Forbes, 2006).
References
Wheelen, T. L., & Hunger, J. D. (2008). Concepts in strategic management and business policy (11th ed.). Upper Saddle River, NJ: Pearson Education.