Strategic Management: Formulation and Implementation

The Scope And Dimension Of Strategic Management

Strategic management focuses on the total enterprise. It involves the planning, directing, organizing, and controlling of the strategy-related decisions and actions of the business.

The Scope Of Strategic Management

J. Constable has defined the area addressed by strategic management as "the management processes and decisions which determine the long-term structure and activities of the organization". This definition incorporates five key themes:

* Management process. Management process as relate to how strategies are created and changed.

* Management decisions. The decisions must relate clearly to a solution of perceived problems (how to avoid a threat; how to capitalize on an opportunity).

* Time scales. The strategic time horizon is long. However, it for company in real trouble can be very short.

* Structure of the organization. An organization is managed by people within a structure. The decisions which result from the way that managers work together within the structure can result in strategic change.

* Activities of the organization. This is a potentially limitless area of study and we normally shall centre upon all activities which affect the organization.

These all five themes are fundamental to a study of the strategic management field and are discussed further in this chapter and other part of this thesis.