Page 85 - PRAGMATIC STRATEGY

Summary

Strategic Management is concerned with:

• strategic analysis - consisting of internal analysis of the organisation's goals and
objectives, current strategy resources, competences, activities, products structure and
culture and external analysis of the macro and micro (competitive) environment in
which the firm operates

• strategy development - consideration of the alternative ways in which the organisation
can deploy its bundle of resources and competences to achieve its goals and how it
chooses between them;

• implementation and review of strategy and management of change - consideration
of the methods by which the organisation seeks to put its chosen strategy into effect and
adjusts it to changing circumstances;

• strategic issues - exploration internal and external issues facing the firm which must be
considered when seeking to achieve competitive advantage.

Management decisions are made at strategic, tactical and operational levels which differ
from each other in terms of: the focus of the decision; the level at which they are made in
the organisation; the scope of the decision; the time horizon at which they are aimed; the
degree of certainty or uncertainty of the information upon which they are based; the
complexity of the decision.

Terms introduced in this Topic

A strategy is the means (plans, policies and actions) by which an organisation seeks to
achieve its goals.
Strategic decisions are concerned with the acquisition of sustainable competitive
advantage.
Tactical decisions are concerned with how corporate objectives are to be met and how
strategies are implemented.
Operational decisions are concerned with the shorter term objectives of the business and
with its day to day management.

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