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Strategic Management

Chapter Summary

Strategic management is the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. Because it involves long-term, future-oriented, complex decision making and requires considerable resources, top-management participation is essential.

Strategic management is a three-tier process involving corporate-, business-, and functional-level planners, and support personnel. At each progressively lower level, strategic activities were shown to be more specific, narrow, short term, and action oriented, with lower risks but fewer opportunities for dramatic impact.

The strategic management model presented in this chapter will serve as the structure for understanding and integrating all the major phases of strategy formulation and implementation. The chapter provided a summary account of these phases, each of which is given extensive individual attention in subsequent chapters.

The chapter stressed that the strategic management process centers on the belief that a firm’s mission can be best achieved through a systematic and comprehensive assessment of both its internal capabilities and its external environment. Subsequent evaluation of the firm’s opportunities leads, in turn, to the choice of long-term objectives and grand strategies and, ultimately, to annual objectives and operating strategies, which must be implemented, monitored, and controlled.










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