Essay on Strategic Management and Decision Making

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Strategic management and decision making Strategic management is a disciplined effort or control to make necessary decisions that have an effect on a business or an organization; the aim of strategic management is mainly to develop new, innovative or diverse ideas and opportunities for potential or development, and facilitates or assists an organization to achieve its goals (SM, 2010). In reality, strategic management not only can be used or applied to determine mission, vision and values or objectives, but it also establishes roles and responsibilities or timelines in a business (David, 2009). In the following sections, this study will focus on and examine the nature of strategy formulation, implementation, and evaluation …show more content…
Strategic management is adaptive and keeps an organization relevant (S.M, 2010, p.1).
There are three main processes of strategic formation, Kim and Mauborgne (2005) suggests:
1) Carrying out situation and competitor analyses with self-evaluation (both internal and external, and in cooperation with micro-environmental and macro-environmental);
2) Simultaneous with this assessment, business goals are set; all objectives (short-term or long-term) should be parallel to a time-line--this includes creating vision statements (long term view), mission statements (the role that the firm gives itself in society), company and business unit strategic and tactical objectives; and
3) Together with the situation analysis, these objectives should put forward a strategic plan which presents the aspects and details of how to accomplish these goals or targets.
Overall, strategic management not only can help management focusing its energy, and ensure that employees are working toward the same objectives; consequently, it also can assess and adjust the firm's direction in response to a changing environment (David).
Potential pitfalls In the subjects of potential risks or pitfalls in using a strategic-management approach to decision making, David (2009) examines and argues, strategic management
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