STRATEGIC

MANAGEMENT
LEVELS
The levels of strategic management are: enterprise level;
level of SBU (strategic business units) and level of
marketing. Enterprise level is the highest level at which the
planning process is carried out. At this level for the
planning process is the responsibility of the management of
the company. Company-level planning is the foundation of
business profitability in the planning period. Planning at
enterprise level defines business areas and business
(existing and new) which the enterprise should perform in
the planning period. In addition to determining business
areas, the administration should also specify the amount of
resources and resource allocation by business areas and
business units to cover them. Business planning takes place
at the level of Strategic Business Unit (SBU). Each SBU
delivers its business plan for the foreseen planning period.
Planning at the level of the SBU will include plans for the
products they are dealing with and for the markets they
operate within the enterprise. The allocation of funds to be
allocated to each SBU in the foreseeable planning period is
done by the enterprise management (company-level
planning). As the management of companies needs to
provide synergy between business areas, each SBU should
provide synergy between business functions. Planning at
the level of the SBU will include plans for the products they
are dealing with and for the markets they operate within
the enterprise. Product planning is done at the product line
level or brand of product within each SBU and results in a
plan for each product and market in order to reach the
stated goals. At the level of marketing as a business
function, planning is made to tailor marketing mixes to
target market segments where product positioning is
performed. Step 1: Establishing Vision, Mission and Goals -
The first step in strategic management is defining the
mission, vision and goals of the organization. The Mission
represents the basic purpose and values of the organization
as well as the scope of its operations. This is a statement
about the reason for the organization's existence. Strategic
vision moves beyond the mission statement to provide
insight into where the company is going and what
organization can become. Although the terms vision and
mission often use as synonyms, the vision statement ideally
clarifies the company's long-term direction and its strategic
intentions. Strategic goals come from vision and mission.
The CEO of the organization, with the inputs and approval
of the board of directors, determines the vision, mission
and basic strategic goals. Concepts and directions within
mission statement and vision and statement of strategic
goals cannot often be identified as such but should
communicate with everyone who has contact with the
organization. Big companies often publish their public
statements of mission, vision and strategic goals. Step 2:
Analysis of External Opportunities and Threats - The
mission and vision introduce the second component of the
strategic management process: the analysis of the external
environment. Successful strategic management depends on
the precise and fundamental evaluation of the environment.
Some of the important activities are the analysis of the
environment: Industry and market analysis - industry
profile, growth opportunities and strength within the
industry; Competition analysis - competitor profile,
competition analysis according to their strategies, goals,
advantages and weaknesses, as well as the advantages of
competition; Analysis of the political and legal environment
- the influence of regulatory and legal regulations on
industry, and the level of political activity that the state
undertakes within the industry; Society analysis - social
issues that can, at present and in the future, trigger the
industry, social interest groups; Human resource analysis -
or analysis of human resources refers to labor and
employment issues; Macroeconomic analysis -
macroeconomic conditions affecting the supply, demand,
development, and profitability of the industry;
Technological analysis - scientific or technological methods
that represent technological factors, whose influence on
industry is not negligible. As we can see, the analysis begins
with the examination of the industry branch to which the
company belongs. The following are the trainees of the
organization. Coaches represent groups or individuals who
influence or are affected by organizational mission, vision
and strategy. This includes buyers, suppliers, competitors,
government and government agencies, trade unions and
employees, the finance community, owners and
shareholders, and chambers of commerce and associations.
An analysis of environments enables the mapping of these
stakeholders and the way they affect the organization. The
environment analysis should also examine other elements
in the environment such as macroeconomic conditions and
technological factors. The key task in environmental
analysis is to forecast future trends. Progressive techniques
range from simple estimation to complex mathematical
models that examine systematic relationships between a
large number of variables. Assessment is susceptible to
prejudice, and managers have limited ability to process
information. Managers should use subjective estimates as
inputs for quantitative models or when faced with a new
situation. Step 3: Internal Force Analysis and Weakness -
While external analysis is being conducted, the strengths
and weaknesses of key business areas within an
organization need to go through estimation. Internal
analysis provides strategic decision makers with a complete
review of organizational resources and capabilities, as well
as the overall levels of functional outcomes. Some of the
main components of the internal analysis are: Financial
Analysis - Investigates financial strength and weaknesses
through financial statements such as balance sheet and
performance, and compares trends with historical and
industrial figures; Human Resource Assessment -
Investigates the strengths and weaknesses of all levels of
management and employees and focuses on key human
resource activities, including recruitment, selection, job
placement, training, relationship with trade unions,
compensation, promotion, recognition, quality of work life,
and human resource planning resources; Human Resource
Assessment - Investigates the strengths and weaknesses of
all levels of management and employees and focuses on
key human resource activities, including recruitment,
selection, job placement, training, relationship with trade
unions, compensation, promotion, recognition, quality of
work life, and human resource planning resources;
Marketing Analysis - examines the strengths and
weaknesses of major marketing activities and identifies
markets, key market segments, and market-driven
organizations in key markets; 
Analysis of production (goods or services) - examines the
strengths and weaknesses of production, product
development, and delivery activities of the organization;
Analysis of other internal resources - explores, if necessary
and desirable, the strengths and weaknesses of ongoing
organizational activities such as research and product and
process development, information systems management,
engineering and procurement. Strategic management has
been under the strong influence of internal resources in
recent years. Resources are inputs to a production system
that can accumulate over time and thus use to improve
performance. Resources may have different forms, but
mainly deal with: tangible assets (such as real estate,
manufacturing facilities, raw materials, etc.), and intangible
assets (including rating companies, management, culture,
technological know-how, patents, as well as accumulation
knowledge and experience). Effective internal analysis
provides a clear understanding of how a company can
compete with its resources. Internal resources are a source
of comparative advantage only under certain
circumstances. First, if the resource increases the benefits
for customers deriving from a product or service compared
to the expense they expose, then the resource leads to a
comparative advantage Second, resources are a source of
advantage when they are racing and unequal to all
competitors. Even when it comes to a very valuable
resource, if all competitors have the same approach, then
the resource cannot be a source of competitive advantage.
Third, when some resources are difficult to copy (patents ...)
by competitors, then they are a source of comparative
advantage. And finally, resources can increase the
company's comparative advantage only if they are well-
organized.
REFERENCES
Boeker, W. (1989), Strategic change: the effects of founding
and history, Academy of Management Journal, Vol. 32, 489-
515.
Frishammar, J. (2003), Information use in strategic decision
making, Management Decision, Vol. 41, 318-26.
Hendry, J. (2000), Strategic decision making, discourse, and
strategy as social practice, Journal of Management Studies,
Vol. 37, 955-77.