Strategic Management: Formulation and Implementation

Dimensions Of Strategic Management

Strategic management process involves the entire range of decisions. Typically, strategic issues have six identifiable dimensions:

* Strategic issues require top-management decisions

* Strategic issues involve the allocation of large amounts of company resources

* Strategic issues are likely to have significant impact on the long-term prosperity of the firm

* Strategic issues are future oriented

* Strategic issues usually have major multifunctional or multibusiness consequences

* Strategic issues necessitate considering factors in the firm's external environment.

The Strategic Decision Makers

The strategic management process requires competent individuals to ensure its success. Therefore, to understand strategic management, we must know where strategic decisions are made in organizations.

Inputs to strategic decisions can be generated in a number of ways. Overall, top management, board of directors, and planning staff tend to be those positions that have the most significant involvement and influence in the strategic management process of organizations. The failure of an organization to achieve its objectives can often be traced to a breakdown at the level of the board or top management. However, the final responsibility rests with top management. Some of the strategic management responsibilities are outlined in