Strategic Management Tools And Techniques

In recent years, the strategic management process has become more complex and costly. Growing competitiveness in many markets and along many combinations of dimension is increasing of analysis facing managers. Therefore, in order to assist strategic managers, a wide variety of tools and techniques have been developed. These techniques can be divided into three categories: tools for developing organizational strategies, strategic planning techniques, control techniques.

Tools For Developing Organizational Strategies The process of identification and evaluation a wide range of possible strategies has generated a number of conceptual tools or techniques for these purposes. These tools and techniques are related but distinct. Managers must decide on the extent to which they will be involved in strategic and operational decision making process. Several of the most widely used tools are: critical question analysis, gap analysis, industry analysis, product-market matrix, product life cycles, and many analytical frameworks are used in portfolio management (e.g., SWOT analysis, the BCG matrix ). This section only emphasises on critical question analysis, as the most important aid to guide top management in selecting the right strategy. Critical Question Analysis A synthesis of the ideas of several writers suggests that formulating appropriate organizational strategy is a process of critical question analysis - answering the following four basic questions: * What are the purpose(s) and objectives of the organization? The answer to this question states where the organization wants to go. * Where is the organization presently going? The answer to this question can tell managers if an organization is achieving organizational goals and, if so, whether or not the level of such progress is satisfactory. * Is what kind of environment does the organization now exist? Both internal and external environments are covered in this question. * What can be done to better achieve organizational objectives in the future? The

In order to simplify the discussion of the tools and control techniques, many authors divide them into two categories: nonfinancial and financial. Nonfinancial control techniques do not require financial data to be used, while financial control techniques require some form of financial data such as profits, costs, or revenues. Each of the control techniques is intended for a different purpose. Therefore, in order to make rational choices about which control techniques to implement, managers must understand what a given control techniques can and cannot do. Nonfinancial control techniques. Nonfinancial control techniques include rewards and punishments, selection procedures, socialization and training, the management hierarchy, management by exception, inventory and quality control, and PERT. Financial Control Techniques. Financial controls help managers to keep costs in line, maintain a viable relationship between assets and liabilities, sustain adequate liquidity, and achieve general operating efficiency. Some of the best-known and most commonly used financial

Strategic analysis tools

Strategic Analysis is: the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy. BNET Business Dictionary a theoretically informed understanding of the environment in which an organisation is operating, together with an understanding of the organisations interaction with its environment in order to improve organisational efficiency and effectiveness by increasing the organisations capacity to deploy and redeploy its resources intelligently. Professor Les Worrall, Wolverhampton Business School Definitions of strategic analysis often differ, but the following attributes are commonly associated with it: 1. Identification and evaluation of data relevant to strategy formulation. 2. Definition of the external and internal environment to be analysed. 3. A range of analytical methods that can be employed in the analysis. Examples of analytical methods used in strategic analysis include: SWOT analysis PEST analysis Porters five forces analysis four corners analysis value chain analysis early warning scans war gaming.

Process mapping and modeling for instance, is in many cases an indispensible tool in visualizing, communicating and understanding how your business creates value. Clarifying business processes is key to development and continuous improvement. Many times, the work of mapping and visualizing your processes can lead to new and unexpected insights