What Is Strategic Management?

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Introduction There is no single, universally accepted definition for strategy. Some understand it as a deliberate plan, drawn up to achieve set goals, others see it more as a process, whereby a company’s decision and actions are made in alignment with opportunities or threats in the industry. Even others define it as a pattern of consistent actions in decision-making and lastly there are those with a military view of strategy, who consider it a manoeuvre to beat and outsmart the competition (Parthasarthy, 2006). By drawing from each of the definitions, one could say that strategy and by extension, strategic management, is constituted of short-term strategies involving managing and planning for the present and long-term decisions and…show more content…
The third part in defining purpose is concerned with a company’s values and beliefs. It has to be decided which values and beliefs are important for the company, which concern issues such as quality standards, treatment of workforce, awareness of the environment etc. The final part of the mission or purpose statement is goals and objectives. By elucidating exactly what the company is aiming for it can measure performance and progress towards its vision as well as make employees pull on one string by explaining what exactly is expected of them.
“The IKEA vision is "To create a better everyday life for the many people."
Our business idea is "To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them." Our market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money."” (IKEA, 2007)
IKEA’s mission statement is quite clear, it tells you what the company’s purpose is, who its stakeholders are (everyone, or anyone with a tighter budget) and what it does. The statement also clarifies that the customer is supposed to do its part in the value adding process, more precisely transporting the items home and assembling the furniture for a better price.
Kamprad says so himself: “I see my task as
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