Long term objectives are prepared from the mission statement of the organization on the basis of which all other activities depend. Long term objectives highlight the expected consequences that emerged from application of certain strategies. All the strategies of the Business Organization are formulated & implemented in the guidance of the long term objectives. These objectives are for longer period of time ranging from two to five years & this time frame should also be consistent for the resulting strategies.
Strategic management involves the formulation and implementation of the strategies which are acquired to achieve the major goals and objectives of the firm or business organization. We may also say that strategic management gives us a direction to plan or achieve the our goals and objectives in sufficient manners. Also this is the function of strategic management that it helps to set the objectives and goals, and then achieve them through proper planning.
After completing the phase of strategy formulation, the next important stage is the strategy implementation in Strategic Management in which the theoretical work is converted into practical one. In order to produce effective business performance, the strategies & plans should be converted into individual actions. Strategy implementation is the most difficult stage of the whole strategic management process and most of the organizations fail in properly motivating their employees to perform their duties well so that the overall objectives of the organizations are accomplished. Most of the organizations know that what kind of strategies & plans are beneficial for the success. But some of them have the capability to translate the formulated strategies & plans into action which means successful implementation of the strategy. There are certain potential methods of strategy implementation. An impressive foresight leadership organization has worked to provide such advanced principles.
Decision stage is the last stage of strategy formulation in which a tool is used called Quantitative Strategic Planning Matrix or QASM Matrix. There are a number of alternative strategies and the Quantitative Strategic Planning Matrix (QSPM) can be used to objectively evaluate the most suitable strategy among the list of all the alternative strategies. The data is collected and a matrix is developed by using quantitative method for strategic planning. The identification of the external & internal crucial success factor is regarded as the basis of QSPM Matrix. The relative attractiveness of feasible alternative action can be determined by only specially designed technique of QSPM Matrix.
For formulation of framework another important matching tool is used, which is known as Strategic Position and Action Evaluation or SPACE Matrix. It specifies the current strategic position of the Business Organization and the required actions that need to be taken. The SPACE Matrix is prepared on graph & is closed on matrix. Counter clock wise direction is followed in this kind of matrix. There are four quadrant are included in the graph which are as below.
Vertical integration strategy is a way through which companies try to hold their upstream suppliers and downstream buyers. There are three types of vertical integration and vertical Integration strategies are the combination of those strategies that are applied in the organization to acquire control over suppliers, competitors & distributors. Following are the three main types of vertical integration strategy, which are also collectively known as vertical integration strategies.
When an organization struggles to improve its competitive position with the current products then different types of intensive strategies should be considered. Intensive efforts are needed to employ when intensive strategies are exercised by the organization. Intensive strategies include the following strategies.
Grand Strategy Matrix is one of important matrix of strategy formulation frame work. For formulation of alternative strategies, it is popular tool. In Grand Strategy Matrix there are four kinds of quadrants and an organization is placed in one of these four quadrants. In each quadrant of the matrix there is set of strategies specified on the sequential order of attractiveness that are considered by the organization. SWOT Analysis, PEST Analysis, TOWS Matrix and grand strategy matrix all are adopted for same purpose of promoting and establishing business in the market.
Diversification strategy probably takes place, when company or Business Organizations introduce a new product in the market. These strategies are known as diversification strategies. There are three kinds of diversification strategies.
Organizations pursue defensive strategies when the circumstances require some sort of adjustments in the structure or functioning of the organization. Three types of strategic Marketing Strategies are regarded as defensive strategies.
The management consulting organization Boston consulting group matrix (BCG) is an analytical tool which is founded in 1963 by Harvard Business School alum Bruce Henderson. Boston consulting group matrix (BCG) created a chart named growth-share matrix with the help of which the organizations can make analysis of their different product lines or business units in order to ascertain the allocation of cash to potential business units or product lines. It has been very popular since its origin.