STRATEGİC MANAGEMENT

  Long term objectives are prepared from the mission statement of the organization on the basis of which all other activities depend. Long term objectives highlight the expected consequences that emerged from application of certain strategies. All the strategies of the business organization are formulated & implemented in the guidance of the long term objectives. These objectives are for longer period of time ranging from two to five years & this time frame should also be consistent for the resulting strategies.                  Nature of Long Term Objectives The nature of long term objectives is better explained from the following features. Should be quantitative Should be realistic Should be measurable Should be challenging Should be obtainable Should be hierarchical Should be according to other functional units of organization   There must be a time line th...

A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks. While functional structures operate well in stable environments where business strategies are less inclined to changes or dynamism, the level of bureaucracy makes it difficult for organizations to respond to changes in the market quickly. Strength: Specialization When companies use a functional organizational structure, people with similar knowledge and skills are grouped together. This makes it possible for employees to become specialists in their field. It requires a performance management system that allows for the promotion, development and visibility of individual skills within their functional area. The specialization that functional structures hone helps to bring about in-depth knowledge and skill development among the employees, and this can help you achieve your company's functio...

A number of reasons are given by authors to as why organizations should engage in strategic management. Many research studies show both financial and nonfinancial benefits which can be derived from a strategic-management approach to decision making. Financial Benefits The question " Why should an organization engage in strategic management ?" must be answered by looking at the relationship between strategic management and performance. Research performed by  Eastlack and McDonald (1970), Thune and House (1970), Ansoff et. al. (1971), Karger and Malik (1975), and Hofer and Schendel (1978 ) indicate that formalized strategic management (strategic planning) does result in superior performance by organizations. Each of these studies was able to provide conceiving evidence of the profitability of strategy formulation and implementation. The formalized strategic management process does make a difference in the recorded measurements of profits, sales, and return on assets. Orga...