WHAT IS SO STRATEGIC ABOUT STRATEGY MANAGEMENT?

"Acting without strategy is like

running a marathon

without knowing the route "

WHAT IS SO STRATEGIC ABOUT STRATEGY MANAGEMENT?

Strategic management is the process of aligning organizational assets to meet your corporate
objectives through the development, implementation, and review of an organization's strategy.

The process by which organizations create and implement strategies to adapt to an environment that's
continually changing.

It gives the direction.

Strategy is about Where to,

Operations answer to How to.

You can take lots of actions and end up in nothing, so you have to keep your target in mind.

Tools for visual strategy planning help a lot, e.g. Roadmap Planner.

Sometimes you have to adjust your actions according to the changing conditions, and such tools help
you KEEP FOCUSED on the initial ultimate goal.

Strategic management, therefore, defines direction and answers the vital questions:

what are we to do next?

Where shall we be in 5, 10 years?

A good strategy identifies the best course of actions or the path of least resistance to reach these goals.

Good strategy requires a coherent set of actions or policies that not only draw on existing strengths,
but create strength through the nature of these set of mutually reinforcing actions.

The essence of strategy is about doing different things from your competitors or doing similar things
differently than your competitors.

Strategic management includes innovative thinking, a strategic planning process, and operational
strategizing. It is imperative that for a business strategy to be successful, customers’ opinions,
employees’ contributions, and the industry’s best practices are all taken into account.

It, therefore, evaluates business goals, the organization’s vision, and objectives as well as plans.
Besides, it is employed to ensure that the business runs effectively and efficiently. Communicating
this strategy internally and externally is crucial for success, for both staff and the organization to
understand the purpose and direction along with external parties.

Strategic managment is one of the most important determinants in whether an organization is capable
of setting growth targets, formulating a very comprehensive plan in pursuit of a specific goal/goals, as
well as incorporating all facets of a corporations’ business model into a well defined vision of what
the future could bring and how to create that dream.

Understand Strategic Management as a constant effort for adaptation—provides good starting points
that address all ASPECTS OF STRATEGIZING:

1. Governance structures (coordinating goals across different departments),

2. Human resource management,

3. Business processes, and

4. Organizational culture.

AIM

The purpose of strategic management is to yield very high annual results that are needed for a
business’s current situation.

For Apple they obviously want high revenue & profit, but also want to greatly improve brand image,
and brand visibility, and marketing & sales, and spend a lot in innovation, product development.

Samsung wants to do all the same things but emphasizes increasing efficiency and less on excessive
marketing.

The aim of strategic management is to achieve the ideal result given the particular situation.

Apple is focused on dominating the upper end. Samsung is focused on dominating low and mid end
and competing okay in the high end.

Samsung also sells a lot more types of products.

Strategic management therefore focuses on where you compete

(focus more of luxury(Rolex), or

ultra premium(Apple), or

focus on low end(Walmart) or

focus on low, mid, high(Samsung).

Strategic management focuses on why you win Rolex is more on marketing, sales, brand, product,
manufacturing.

Apple on innovation.

Walmart on efficiency.