Loresto, Arabelle T.

OM4A
Assign #1
1. The nature of Strama
a. Strategic management is a field that deals with the major intended and
emergent initiatives taken by general managers on behalf of owners,
involving utilization of resources, to enhance the performance of firms in
their external environments.[1] It entails specifying the organization's
mission, vision and objectives, developing policies and plans, often in
terms of projects and programs, which are designed to achieve these
objectives, and then allocating resources to implement the policies and
plans, projects and programs. A balanced scorecard is often used to
evaluate the overall performance of the business and its progress towards
objectives. Recent studies and leading management theorists have
advocated that strategy needs to start with stakeholders expectations and
use a modified balanced scorecard which includes all stakeholders.
b. Strategies of strama-
c. Integrating intuition and analysis-
d. Strategic management model- refers to the pattern or mode of strategic
management. According to the strategic management model, a number of
steps are taken to achieve the objectives of a company. Different strategic
management models are chosen by various companies according to their
conveniences. Strategic management model is also known as strategic
planning model. A strategic planning model is selected for the purpose of
formulating and implementing the strategic management plan of a
particular organization. Nevertheless, it has been proved that no strategic
planning model is perfect. Every company designs its own strategic
planning model frequently by choosing a model and transforming it as the
company advances into formulating its strategic management plan
procedures. A number of strategic planning model options are available
for the companies from which they can choose.

e. Benefits of strategic management-

15 Key Benefits of a Strategic Management System

Which of these benefits are still missing in your organization?

1. Taking an organization-wide, proactive approach to a changing global

world

2. Building an executive team that serves as a model of cross-functional or

horizontal teamwork
3. Having an intense executive development and strategic orientation
process

4. Defining focused, quantifiable outcomes measures of success

5. Making intelligent budgeting decisions

6. Clarifying your competitive advantage

7. Reducing conflict; empowering the organization

8. Providing clear guidelines for day-to-day decisiion making

9. Creating a critical mass for change

10. “Singing from the same hymnal” throughout the organization

11. Clarifying and simplifing the barrage of management techniques

12. Empowering middle managers

13. Focusing everyone in the organization in the same overall framework

14. Speeding up implementation of the core strategies

15. Providing tangible tools for dealing with the stress of change

f. pitfalls in strategic management-

• Jumping from mission formulation to strategy development without sufficient

time to determine the critical success indicators embodied in the mission
statement.
• Top management fails to communicate the plan to the other employees, who
continue working in the dark.
• Management rejecting the formal planning mechanism and making intuitive
decisions that may conflict with the formal plan. This also creates confusion for
other employees on how the plan is to be employed in their work activities.
• Failing to use the plans as a standard for measuring performance.
• Top management believing that it can create a plan by delegating the planning
function to a "planner." While the planner may facilitate the planning process,
management must still take ownership of the plan itself. [see Role of the Planning
Consultant]
• Failure to involve key employees in all phases of the planning process
(preparation, strategy development, evaluation, and implementation).
 • Failure to create a climate which is collaborative and not resistant to change.
• Treating planning as something quite different and not an integral part of the
entire management process.
• Becoming so engrossed in current problems that insufficient time is spent on
long-range planning.
• Becoming so formal that the process lacks the flexibility and creativity needed to
address the uniqueness of each company.

g. guidelines for effective strama-