Strategic Management: Formulation and Implementation

Making Strategic Decisions

The making of strategic decisions is a function and responsibility of managers at all levels. However, the strategic management responsibilities of managers at lower levels vary depending on the nature and size of the organization and their position in the organizational hierarchy.

The strategy-making task tends to be divided up among managers at different levels in the organizational hierarchy .

The key point is that, while there needs to be a strategic game plan at each managerial level to achieve the objectives set at that level, there are also vertical linkages in both objectives and strategy that can serve to unify the objective-setting and strategy-making activities of many managers into a coherent, coordinated pattern.

Identifying A Strategy

The purpose of identifying and articulating the current strategy of an organization as the first step in strategic analysis is threefold:

  1. To provide an understanding of how the organization reached its present status and current level of performance.
  2. To provide the first alternative for any set of strategic alternatives.
  3. To communicate with other strategists to come to a common understanding of the situation.

Identification of strategy involves of investigative work and analysis.

An organization which has no explicit strategy is relatively easy to identify. The probabilities of long-term success are greatly reduced without a consciously developed strategy.

However, strategy may exist even when it is not formally developed and explicitly communicated. If the strategy has been developed but no written, it becomes necessary to look for evidence of strategy rather than for a strategy statement. In this situation, a formally developed, written strategy makes identification simply a process of locating the statement of strategy or an individual who can divulge it.