Strategic Management: Formulation and Implementation

Strategic Management Tools And Techniques

In recent years, the strategic management process has become more complex and costly. Growing competitiveness in many markets and along many combinations of dimension is increasing of analysis facing managers. Therefore, in order to assist strategic managers, a wide variety of tools and techniques have been developed. These techniques can be divided into three categories: tools for developing organizational strategies, strategic planning techniques, control techniques.

Tools For Developing Organizational Strategies

The process of identification and evaluation a wide range of possible strategies has generated a number of conceptual tools or techniques for these purposes. These tools and techniques are related but distinct. Managers must decide on the extent to which they will be involved in strategic and operational decision making process.

Several of the most widely used tools are: critical question analysis, gap analysis, industry analysis, product-market matrix, product life cycles, and many analytical frameworks are used in portfolio management (e.g., SWOT analysis, the BCG matrix ).

This section only emphasises on critical question analysis, as the most important aid to guide top management in selecting the right strategy.

Critical Question Analysis

A synthesis of the ideas of several writers suggests that formulating appropriate organizational strategy is a process of critical question analysis - answering the following four basic questions:

* What are the purpose(s) and objectives of the organization? The answer to this question states where the organization wants to go.

* Where is the organization presently going? The answer to this question can tell managers if an organization is achieving organizational goals and, if so, whether or not the level of such progress is satisfactory.

* Is what kind of environment does the organization now exist? Both internal and external environments are covered in this question.

* What can be done to better achieve organizational objectives in the future? The answer to this question actually results in the strategy of the organization.