Basic Concepts of Strategic Management

Strategic thinking is the cognitive thinking process about the organization’s existence, growth, and long-term development. The first step of strategic thinking starts from pondering the purpose and values of the organization and envisioning persistent success. Even though laws typically define the missions of government departments or agencies, it is common for organizations to state the purpose and values in the mission statement.

In contrast to strategic thinking or envisioning the future, strategic analysis is the process of understanding the status quo. It is a vital part of the strategy formulation driven by analyzing the context of the organization and the needs of stakeholders.

Strategic planning is the process whereby the strategy to achieve the organization’s vision and mission is developed. A strategy is an approach or high-level plan that points out the direction to achieve the strategic goals derived from the vision and mission.

Strategy execution is sponsored by the management and directed by policies. In other words, a strategy or strategic plan itself does not execute; people with various roles and responsibilities directed by policies implement the strategy to achieve strategic goals and create values and fulfill organizational vision and mission.

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