What is management strategy?

The art of managing "management strategy/ies" is stratetegic management and Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It is the process of specifying the organization's objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives. Strategic management, therefore, combines the activities of the various functional areas of a business to achieve organizational objectives. It is the highest level of managerial activity, usually formulated by the Board of directors and performed by the organization's Chief Executive Officer (CEO) and executive team. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. Strategic Management Process 1 Strategy formulation · Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. · Concurrent with this assessment, objectives are set. This involves crafting vision statements (long term view of a possible future), Mission Statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives. · These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives. This three-step strategy formulation process is sometimes referred to as determining where you are now, determining where you want to go, and then determining how to get there. These three questions are the essence of strategic planning. SWOT Analysis: I/O Economics for the external factors and RBV for the internal factors. 2 Strategy implementation · Allocation of sufficient resources (financial, personnel, time, technology support) · Establishing a chain of command or some alternative structure (such as cross functional teams) · Assigning responsibility of specific tasks or processes to specific individuals or groups · It also involves managing the process. This includes monitoring results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process as necessary. · When implementing specific programs, this involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes. 3 Strategy evaluation · Measuring the effectiveness of the organizational strategy. It's extremely important to undergo SWOT to figure out the strength, weaknesses, opportunities and threat of both internal and external to the entity in question. Modern Management identifies seven best practices that the company must abide by. These are * Simultaneous continuous improvement in cost, quality, service, and product innovation * Breaking down organizational barriers between departments * Eliminating layers of management creating flatter organizational hierarchies. * Closer relationships with customers and suppliers * Intelligent use of new technology * Global focus * Improving human resource skills The search for "best practices" is also called benchmarking. This involves determining where you need to improve, finding an organization that is exceptional in this area, then studying the company and applying its best practices in your firm.