Stages In Strategic Management Commerce Essay

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Today, there are many definitions of strategic defined by various authors and by refer to Mintzberg et al., the definition of strategic is universal and there is no single. The others author, Chandler (1962) as the American business historian is the first person that defined strategic as determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out those goals. In the context of construction, Channon (1978) defined strategy in term of the extent of diversification, international activity and acquisition policy. Mintzberg (1994) portrays strategy as a plan - a direction, a guide or Strategic Management Practices in Malaysian Construction Industry 142 course of action into the future - and as a pattern, that is, consistent in behavior over time.

In terms of strategic management, David (1997) defined strategic management as the art and science of formulating, implementing and evaluating cross-functional decision that enables organization to achieve its objectives. Meanwhile, Wheelen and Hunger (1984) stated that strategic management contains strategy formulation, strategy implementation and strategy evaluation that is important to determine the long-run production of corporation and this is a set of managerial decisions.

Strategic management has evolved into a more sophisticated and potentially more powerful tool (Stoney, 2001). The strategic management stages needs a person who are competent to handle this process more effectively and to make sure that its success (Stahl and Grigsby, 1992). To ensure firm success and can overcome any barriers that occurs during strategic management process, the top management of an organization must play their roles through involvement in the process, through dialogue and participation. However, to be more effective, Hunger and Wheelen (2003) state that people at all levels, not just top management, such as an employees also need to be involved in strategic management because they will become committed to supporting an organization. For example, they can scanning the environment for critical information, suggesting changes to strategies and programs to take advantage of environment shifts, and continuously improve work methods, procedures, and evaluation techniques by working with others people in the organization. The aim purpose of the process is to achieve the understanding and commitment from top management and employees.


The objectives of the paper is to present and share :-

The definition of strategic management by various author

The nature of strategy formulation, implementation and evaluation by refer to the various authors.


Stages In Strategic Management

Generally, strategic management process can be divided into three phases. There are strategy formulation, strategy implementation and strategy evaluation.

Strategy Formulation

The first stages of strategic management process is strategy formulation. According to Certo and Peter (1991), usually this phase include the strategy that aims to ensuring that organizations achieve their objectives. On the other hand, David (1997) stated that strategy formulation phase includes developing a vision and mission, identifying an organization external opportunities and threats, determining internal strength and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing the best alternative strategy to be pursue. He also said that issues in strategic management includes deciding what new business to enter, what business to abandon, how to allocate resources without hostile takeovers, whether to expand operations or diversity, whether to merge or form a joint venture, whether to enter international markets and how to avoid a hostile takeover.


Good intelligence is not necessarily going to make a great strategy while successful strategies are derived from good intelligence concerning a company's total business environment including the competition. There is some intelligence role in strategy formulation. Among them are: -

- Describing the Competitive Environment.

Intelligence analysis must to carry out their responsibilities, so that the company can compete with the challenging environment over time. Besides that, intelligence should also determine the causes of the company's competitive environment, including competitors, customers, products, the structure of the industry in which they all perform, and the type of competition, such as price performance, and technology.

Forecasting the Future Competitive Environment

Intelligence department can provide predictions of future business for the company, especially in the competitive environment in which the company is likely to find itself. Business intelligence estimate is the most appropriate intelligence products to reflect the competitive environment in the future, as being one entirely different from the business environment that it competes in today.

Identifying and Compensating for Exposed Weaknesses.

Company's own weaknesses and vulnerabilities can be identify and assess by using intelligence department. Usually when a company is about to launch a new strategy or enter a market or business that it has never participated in before, this ability is particularly valuable because the competition is likely to have assessed the newcomers strengths and weaknesses and will exploit those weaknesses that are truly vulnerabilities. Before entering the new business arena, companies must be aware of his own weaknesses before the occurrence of a competition. This is to ensure that the company is always ready to take corrective action or formulate new strategies so that the company is not affected.

Using Intelligence to Implement and Adjust Strategy to the Changing Competitive Environment.

After the new strategy have been designed and tested, then it goes through two distinct phases of implementation. Initial implementation of the first phase is when competitors began to detect and respond to the strategy's salient features. While the second phase is developing a more complete and appropriate set of actions to counter your strategy. The intelligence that you gather during both distinct phases of implementation are critical to the long-term viability of your new strategy because comprehensiveness, timeliness, objectivity and analysis are required in these two phase. Few US companies are capable of managing such effective business intelligence operations and thus formulating the appropriate ongoing business plans necessary to continually adjust their strategy to the changing competitive environment.


When open innovation models are being introduced in the industry, innovative firms must taking more and more open forms, so that a firm can create the innovation process in a knowledge-based society. In addition, the firm also can  build porous borders to incorporate their own knowledge and competencies with others. The first step is to identify useful knowledge among employees and stakeholders of the NTBF (new technology based firm), so that they do not require further discussion. However, in the external environment, identify useful knowledge is not as easy as I thought. There are several questions that must be answered to proceed from knowledge identification to transfer knowledge :-

Who has the requested knowledge?

This question is more relevant when searching among the members of the NTBF but also a "who knows the whereabouts of the requested knowledge?" which is more relevant when the requested knowledge lies outside the firm.

What are our relations with the actor holding the requested knowledge?

Question like this is to identify ways to strengthen ties in the relation with the actor/partner holding the requested knowledge. What drives this relationship? Is it based on friendship, a strategic alliance, a mutually-beneficial business relationship, or a potential partnership etc.?

What is the nature of the requested knowledge?

The third question is related to the knowledge complexity that determines the ability to accomplish the knowledge transfer because it is has to be regarded within the framework of a specific knowledge transaction, between specific persons in a specific context.

How can we transfer this knowledge and what is the compensation requested for this transfer?

The fourth question related to the readiness of the "owner knowledge" to share knowledge because knowledge transfer process cannot be determined in advance, and this depends on the complexity of knowledge and the absorptive capacity of the recipient to make the transfer.

Apart from compensation, are there additional costs associated with the transfer?

The fifth question tries to examine the non-monetary cost associated with the transfer of knowledge. As mentioned earlier, a NTBF's resources are limited and valuable and the cost to absorb a knowledge transfer might prove costly in terms of man days of key members of the NTBF.

Does this knowledge transaction contribute to the formation of a "collaborative" competitive advantage?

The final question concerns the examination of the probability that this knowledge transaction is part of the formation of a knowledge-based strategic alliance forming a sustainable competitive advantage that is difficult to imitate.


The purpose of strategy formulation is to develop a vision, mission, goals and the desired strategies for the championship sport in the province. The general objective of this vision is to promote championship sport in Zanjan province and the quantative objective is to promote championship sport in Zanjan such that it develops as one of the 5 high profile provinces in sport fields. To pave the way for all individuals to play sport regardless of their physical, mental, financial, social, cultural and economic qualities are the qualitative objective. In addition, by participating in domestic and foreign competition is also based on Zanjan general objectives of physical education departments in terms of championship sports. There are some long-term goals of sports tournaments in Zanjan province. Among them are male and female coaches will Increase in number from 6022 to 8000 through a five-year plan, the numbers of referees from female and male will Increase 3631 to 4500 through the 5-year plan, 20% increase hosting championship competition, the athletes `s participation in sports championship also rates Increase, rising 10% the number of male and female athletes and increasing per capita for the sports spaces in the province from 62 c / m to 1m.

the mission of championship sports in Zanjan province is to enhance championship sport with an emphasis on the athletic ethics. in order to provide the internal factors assessment matrix, they design a list of the most important internal factors(strengths-weaknesses)in the matrix taking the respective elites and experts` viewpoints and the existing gap between the current and desirable situations into consideration. After that, several elites were asked to give weights and ranks for the related factors. It should be noted that considering the internal and external factors assessment matrix, a weight reflects a single factor success, while a rank reveals the current strategies effectiveness in terms of a reaction directed toward the respective factor.