Important definitions of strategic management terms

They need to be both effective as well as efficient. They can understand the reaction of environmental changes on the organization and the probable response of the organization with the help of strategic management.

Benchmarking can also occur between two or more different companies. Once you have these articulated, identify specific goals for each segment in your goal development phase. Organisational Development planned, organisation-wide effort, managed from the top, to increase organisational effectiveness through planned interventions in the organisation process using behavioural science knowledge.

In case of deviations, the corrective actions are taken. Net Income Net Income is total revenue minus total expense, what's left of the monies received after all debts have been paid, the bottom line. To that end, putting strategic management plans into practice is the most important aspect of the planning itself.

Strategic Management - Meaning and Important Concepts Strategic Management - Meaning and Important Concepts Strategic Management - An Introduction Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization.

One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well.

Expected Value The estimated or assessed cost or benefit of some action, proposal or event multiplied by the expected probability of it occurring.

Segmenting customers is a process of identifying and sorting them into groups according to their needs, wants and characteristics. The first step in the strategic planning is to develop the vision statement and after that mission statement is prepared. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.

Following are the important concepts of Strategic Management: Objectives Peter Drucker in The Practice of Management cites eight key areas in which objectives of performance and results should be set: Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members.

Once the analysis is done, the organization moves to the Strategy Formulation stage where the plan to acquire the required resources is designed, prioritization of the issues facing the business is done and finally the strategy is formulated accordingly 4. Journal of Business Strategies, Vol.

Vision Long-term goal of strategy.

Strategic Management Process

Creating a barrier between the development of strategies and their implementation can make it difficult for managers to determine whether objectives were efficiently met.

Core competencies that give the firm an advantage in meeting the needs of its target markets. Customer segmentation defines the different groups of people or organizations a company aims to reach or serve. By creating a SWOT analysis, you can see all the important factors affecting your organization together in one place.

The process is not a one time implementation but we can think strategic management process as a loop which keeps on going to achieve the objectives as per the need.

The process of an organization deciding their corporate direction, objectives and priorities, and then aligning their resources to accomplish the actions necessary to meeting them.

Phase 2 — Developing Strategy. Strengths give the company enhanced competitiveness. Strategic management is not about predicting the future, but about preparing for it and knowing what exact steps the company will have to take to implement its strategic plan and achieve a competitive advantage.

It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage. Above are the reasons why small and medium enterprises are usually reluctant to have their own strategic departments.

If Net Income is positive it is also called Net Profit. Planning; Organising; Motivating; Controlling; Co-ordinating.

SCM Supply Chain Management Definitions & Terms

Following are the important concepts of Strategic Management: After formulation of the strategy, the employees of the organization are clearly made aware of their roles and responsibilities.

Various definitions are used to describe the subject, but few give a full and easy to understand answer. Thus the employees can judge the impact of such changes on their own job and can effectively face the changes.

Strategic Stakeholder Management

If the answer is yes, it should be considered external to the firm. They include material, labour, production utilities, etc. Because of this reality, organization leaders focus on learning from past strategies and examining the environment at large.

A business plan is a planning tool for new businesses, projects, or entrepreneurs who are serious about starting a business. Linked to the Human Relations School.

Strategic Management - Meaning and Important Concepts

Job Rotation and Enlargement A reaction against job specialisation. It is usually done through the many steps of the process. The information is gathered, analyzed and organized with the help of strategists.Glossary of strategic planning terms management, finance and fund Operational Definitions for terms and research variables specific to one.

Glossary of Management Terms. This Glossary is a non-exhaustive list of Management Terms. Quick Search, and monitoring performance of strategic goals over time.

The Human Resources Institute of New Zealand

Proprietary knowledge of a firm that is not related to its most important product or service. Strategic stakeholder management is the process of meeting the expectations and objectives of the stakeholders of the company in accordance with the external and internal environment of the industry by creating a positive relationship with the stakeholders of the company.

What is strategic management and what are the strategic management key terms used in strategic management while implementing the strategy. Glossary of Strategic Terms It is vitally important to have a common language when working in the area of strategy management.

Strategic Management

Alternate strategic methodologies seems to have a different set of terms to describe essentially the same thing. the role of management when setting long term goals and implementing cross-functional decisions that should enable a business to reach these goals strategic analysis the process of conducting research into the business environment within which an organisation operates, and into the organisation itself, to help form future strategies.

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Important definitions of strategic management terms
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