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Strategic management is the process of formulating, implementing and evaluating cross-
functional decisions that enable an organization to achieve its objective.
The important of having strategic management is to allows organization be more
proactive than reactive in achieving to the future, allows organization to initiates and
influence activities in the organization, allows organization to exert control of its own
destiny, and helps organization make better strategies through more systematic, logical
and rational approach to strategies choices.

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As an example I choose Reebok and their missions statement is to delight our consumer
with fresh, exciting and new innovations. We will delight our consumer with style. We
will delight our consumer from the inside out, with breakthrough materials and fabrics.

The 9 essential compenent is :

       


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Œive key categories in the external factor are economic, social, cultural, competitors, and
technology that can give effect to an organization in the future. External factor can be
divided into two categories which are opportunities and treats. Œor example in economic
factor, Celcom take an opportunity by joint venture with Axiata to operate to another
countries so that around the will know Celcom. Another example is in competitors factor
like Celcom and Maxis produce the same product and they need to compete with each
other to achieve their objective but for Celcom, Maxis is the treat.

Strategy formation includes generating alternative strategies and choosing particular

strategy to pursue. Generating alternative strategies where all the upper level employees
get gathered to do meeting and throw lots of ideas for the strategies of an organization.
After generating alternative strategies, the upper level employees need to choose which
strategy is the best. They need to do lot of research and get information as many as
possible to choose the strategies for the future of the organization. Major issues in
strategy formation that usually discuss in the meeting are new business opportunities,
business to abandon, allocation of resource, expansion or diversification, international
markets, mergers or joint ventures and avoidance of hostile takeover. As example given
above Celcom is the communication company in Malaysia and they want to search for
business opportunity outside the home country so they use strategic formation by joint
venture with Axiata. Axiata is a big company and it has name at certain country outside
Malaysia. So when Celcom joint venture with Axiata, Celcom can expose themselves
outside Malaysia.
 
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