STRATEGİC MANAGEMENT

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...