Formulation of Strategy and Strategic Management

Posted: August 27th, 2021

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Formulation of Strategy and Strategic Management

Why Strategic Management Becomes Important to Today’s Corporations

Strategic management is of paramount importance in today’s corporations. It assists in providing the company with the right direction and required leadership to define the strategies that align with the mission, vision, and objectives (Wheelen et al., slide 4). Strategic management offers employees a sense of unification with the business organization, causing them to express their total loyalty for the attainment of commonly defined goals. Likewise, strategic management is better placed to invoke organizational workers to show their best in respect to work performance and productivity (Wheelen et al., slide 17). Therefore, the organizational leadership needs to plan for change based on the consideration of strategic management as a continuously changing process.

Necessary Information for Proper Formulation of Strategy

Before attempting to proceed with formulation of strategy, its precise definition o is critical. All the information should be customized in respect to an organization’s mission and objectives while considering the immediate environment (Wheelen et al., slide 19). Additionally, a proper definition of the strategic objectives would guide the corporate leadership towards a particular adaption action plan, outlining a roadmap and assigning roles. Indeed, a strategic plan would demonstrate the need for the organization to measure its effectiveness and progress over a formulated competitive strategy (Wheelen et al., slide 26). Apart from that aspect, information on formulation of strategy is a necessity because it acts as a force that drives an organization to examine its prospect of adaptation in the predictable future (Wheelen et al., slide 20). Consequently, the same information would help prepare corporate for change through allocation of appropriate capital budgeting, instead of waiting in actively for the outcompeting market forces.

Work Cited

Wheelen, Thomas, L., et al. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. 15th ed., Pearson Education, Inc., 2018.