Beyond Glass Ceilings and Brick Walls - International Labour ...

III Strategic Management
In today’s competitive world, organizations are adopting strategic management
in order to be more effective and efficient. Strategic management is an integrated
approach incorporating all aspects of differentiated functions in an organization
to work more closely together. It is aimed at achieving organizational goals and
encompasses a broad range of stakeholders. The approach takes into
consideration multiple time frames in its planning activities and is concerned
with both effectiveness and efficiency.
Effective organizations are guided by decisive leadership towards a well
defined vision. In order to work towards the realization of a vision, strategic
management identifies specific and clear goals, policies that are explicitly
stated or implicitly understood, and plans the means by which these
goals are to be achieved. Thus strategic management is a process that
has three related activities, namely, strategy analysis, strategy formulation
and strategy implementation (Dess and Miller, 1993).
Strategic analysis is considered the foundation of strategic management.
First, the organization’s strategic goals are examined in the light of external
opportunities and threats. Being aware of the external environment is
extremely crucial. If required, these goals can be revised accordingly.
The strategic goals are defined in congruence with the vision and mission
of the organization. Thus it is ensured that they are rational and also externally
valid. The goals are also examined in the light of internal strengths and
weaknesses. This ensures that they are also internally valid and that the
organization has the potential capability of achieving its goals. The process
ensures that the organization does not set itself unrealistic goals. To formulate
sound strategy, a manager must know the capabilities and limits affecting
the organization.
The second dimension, strategy formulation, requires working at four levelsfunctional,
business, corporate, and international. Thus the basis of working
and planning in an organization becomes broader, requiring the skills and
abilities to address these issues effectively. Those organizations that are
unable to address these issues may find themselves becoming unsuccessful
and losing out to those who develop their capabilities and competitive
advantages.
The third dimension of strategy implementation is the process of
transformation of intentions to realities. This process consists of four
components:
i. Integration - The various sections of an organization that must work
58