Following are the important concepts of Strategic Management:. Implementation results in how the organization's resources are structured such as by product or service or geographyleadership arrangements, communication, incentives, and monitoring mechanisms to track progress towards objectives, among others.
Prahalad and Gary Hamel suggested that companies should build portfolios of businesses around shared technical or operating competencies, and should develop structures and processes to enhance their core competencies.
The framework involves the bargaining power of buyers and suppliers, the threat of new entrants, the availability of substitute products, and the competitive rivalry of firms in the industry. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses; Affects the entire organization by providing direction; Involves both strategy formulation processes and also implementation of the content of the strategy; May be planned intended and unplanned emergent ; Is done at several levels: overall corporate strategy, and individual business strategies; and Involves both conceptual and analytical thought processes.
He recommended eight areas where objectives should be set, such as market standing, innovation, productivity, physical and financial resources, worker performance and attitude, profitability, manager performance and development, and public responsibility.
The focus strategy has two variants, cost focus and differentiation focus. What are the important opportunities and risks for the organization?
The first group is normative.