STRAMA

• Strategic Management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives
• Strategic Management involves setting goals, procedures, and objectives to make a company more competitive
• Strategic Management Process Model includes internal and external environment scanning, strategy formulation, strategy implementation, and evaluation and control
• Benefits of Strategic Management:

  • Attainment of appropriate match between an organization's environment and its strategy, structure, and processes positively affects performance
  • Strategic planning becomes increasingly important as the environment changes
  • Provides a clearer sense of strategic vision for the organization
• Impact of Globalization:

  • Globalization has changed the way modern corporations do business by integrating international markets and corporations
• Impact of Innovation:

  • Innovation allows businesses to achieve extraordinary returns through new products, services, methods, and organizational approaches
  • Implementation of potential innovations drives businesses to be remarkable
• Impact of E-commerce:

  • Electronic Commerce uses the Internet for business transactions
  • Basis for competition shifts to a more strategic level rather than focusing solely on product features and costs
• Strategic Decision Making:

  • Involves identifying and resolving organizational problems by selecting among alternatives
  • Strategic decision making focuses on the long-run future of the organization and includes characteristics like being rare, consequential, and directive
• External Forces influencing organizations:

  • Economic, social and cultural, natural, demographic, political, governmental & legal, technological, and competitive forces