Strengths And Weaknesses Of Strategic Management

Strategic management:

Strategy is defined as "the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”

It is the formulation and implementation of the primary goals and the steps taken by the management after considering the resources available and assessment of the competing environment. It provides an overall direction to the organization. The whole phenomenon includes the identification of future plans or sorting out problems that are hindering the goal. Suggesting the possible solutions and then implementing them by providing all the required resources. Strategies are made to set directions, define the organization’s

They clarify their options regarding issue by conducting an environment analysis. SWOT analysis is used for assessing the overall environment of the organization. External and internal environmental analysis of an organization with reference to its position in market is called SWOT analysis. Available opportunities are explored and the suspected threats in the external environment of the business are identified. Simultaneously, the strengths and weaknesses of the organization are studied thoroughly. Strengths are those activities of the organization that ensure its unique representation in the industry. On the other hand those activities that an organization is not doing well on are the weaknesses. Every organizational culture has its own strengths and weaknesses that affect it position in the market. They may need to determine the potential cause of the issue and the process involved. As well as identify any possible constraints placed on decision- making

They get all required relevant details either from the technical staff or the managerial staff. At this step they try to get to the best solution/option under specific circumstances. Collected information is used to formulate strategies at corporate, business and functional levels of the organization.(1,3) Managers at times also take advantage of certain environmental factors or resources to generate other useful options that may help in the expansion of the organization’s mission. All the possible solutions/ options are written down with their relevant independent details.

Choosing an alternative: Managers weigh the pros and cons of the proposed solutions. They analyze their implementation strategies. Strategy formulation includes a detailed analysis of the operational environment of the organization. Environmental analysis includes:

• Internal environment (SWOT analysis): It is the assessment of strengths and weaknesses of organizational resources like its work force, processes and technical systems etc.

• Competitive environment of the industry (Porter’s 5 forces analysis): this includes the assessment of competitors’ behavior in market, the bargaining power of buyers/customer and suppliers, threats from new entrants and ability of buyers to substitute a