A prescriptive approach to strategic management outlines how strategies should be developed, while a descriptive approach focuses on how strategies should be put into practice. These schools differ over whether strategies are developed through an analytic process in which all threats and opportunities are accounted for, or are more like general guiding principles to be applied.
Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy. Strategic planning may also refer to control mechanisms used to implement the strategy once it is determined.
In other words, strategic planning happens around the strategic thinking or strategy making activity. While described sequentially below, in practice the two processes are iterative and each provides input for the other.
Formulation ends with a series of goals or objectives and measures for the organization to pursue. Environmental analysis includes the: Where are the customers and how do they buy? What is considered "value" to the customer?
Which businesses, products and services should be included or excluded from the portfolio of offerings? What is the geographic scope of the business?
What differentiates the company from its competitors in the eyes of customers and other stakeholders? Which skills and capabilities should be developed within the firm? What are the important opportunities and risks for the organization? How can the firm grow, through both its base business and new business?
How can the firm generate more value for investors? Bruce Henderson  InHenry Mintzberg described the many different definitions and perspectives on strategy reflected in both academic research and in practice.
Because of this, he could not point to one process that could be called strategic planning. Instead Mintzberg concludes that there are five types of strategies: Strategy as plan — a directed course of action to achieve an intended set of goals; similar to the strategic planning concept; Strategy as pattern — a consistent pattern of past behavior, with a strategy realized over time rather than planned or intended.
Where the realized pattern was different from the intent, he referred to the strategy as emergent; Strategy as position — locating brands, products, or companies within the market, based on the conceptual framework of consumers or other stakeholders; a strategy determined primarily by factors outside the firm; Strategy as ploy — a specific maneuver intended to outwit a competitor; and Strategy as perspective — executing strategy based on a "theory of the business" or natural extension of the mindset or ideological perspective of the organization.
The first group is normative. It consists of the schools of informal design and conception, the formal planning, and analytical positioning.
The second group, consisting of six schools, is more concerned with how strategic management is actually done, rather than prescribing optimal plans or positions.
Prior tothe term "strategy" was primarily used regarding war and politics, not business. He addressed fundamental strategic questions in a book The Practice of Management writing: He recommended eight areas where objectives should be set, such as market standing, innovation, productivity, physical and financial resources, worker performance and attitude, profitability, manager performance and development, and public responsibility.
Andrews in into what we now call SWOT analysisin which the strengths and weaknesses of the firm are assessed in light of the opportunities and threats in the business environment. Interactions between functions were typically handled by managers who relayed information back and forth between departments.
Chandler stressed the importance of taking a long term perspective when looking to the future. In his ground breaking work Strategy and Structure, Chandler showed that a long-term coordinated strategy was necessary to give a company structure, direction and focus.
He says it concisely, " structure follows strategy. He developed a grid that compared strategies for market penetration, product development, market development and horizontal and vertical integration and diversification. He felt that management could use the grid to systematically prepare for the future.
In his classic Corporate Strategy, he developed gap analysis to clarify the gap between the current reality and the goals and to develop what he called "gap reducing actions".
This supported the argument for achieving higher market share and economies of scale. The idea of strategy targeting particular industries and customers i.Strategic management is the management of an organization’s resources to achieve its goals and objectives.
Strategic management involves setting objectives, analyzing the competitive environment. tips for strategic management and cpa strategic management accounting tips Strategic Management: Concepts and Cases, and (2) Strategic-Management Concepts.
These texts have been on a two-year revision cycle since when the first edition was pub- lished.
They are among the best if not the best-selling strategic- management textbooks in. Strategic management has been defined by Pearce and Robinson () as follows: ‘Strategic management is the set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of an organization.’ Strategic management has been described by Burns () as being primarily concerned.
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JHT2 Task 1 Tip Sheet A. Final Cumulative Balanced Scorecard, income statement, and balance sheet. When providing final accounts, make sure to provide tables and or graphs. Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a.
Click to Enlarge+. Chances are good that, at some time in your life, you've taken a time management class, read about it in books, and tried to use an electronic or paper-based day planner to.