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Introduction In recent years, all around the world fierce competition has emerged because of some concepts such as globalization, fast technological changes, new consisted markets and changing customer expectancies and the competition has become more and more overwhelming.
So businesses are forced to think strategically and making decisions by using strategic planning more. Indeed, while strategic management was known and used in private sectors, some transnational companies, big companies and holdings in the s, today many businesses use it as a means of achieving their objectives Aktan,p.
Today, the main goal of businesses is developing strategy and techniques which present the best service and production in a most productive and effective way and so it is aimed to reach goals and aims in an optimal and productive manner.
That is possible with having a long-term mission to be able to adapt their business in the rapidly changing world. This process should be realized with a prudential and longtime perspective.
That part includes preparation of long-termed aims, goals and priorities of strategic management operating budget, making resource allocation according to these priorities and, in the end, accountability Mediha Yalcin, In this sense, strategic management is a prudential effort. The manner in which is perceived in the future is mentioned with vision and prudential efforts are objectified with the mission.
Being opportunist provides an advantage for the businesses in a fierce competition environment. On this note, the strategy is about sustained choices. Plans which carry out strategic thinking in practice, involve extent, aim, sources and period of control in the business.
It shows formulation of aim, goals, and tools to be used systemically Okur,p.
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This situation paves the way for coming into prominence of strategy concept all around the world, especially for multinational businesses. The concept is military sourced.
Having its foundations in military practices, strategy implies the use of armament actions that are going to reach to determined goals identified by decision makers. If it is necessary, it will direct military, political, economic and moral powers in a coherence.
Forming a strategy is the responsibility of top management of business. However, after the strategy has been formed, in every step of the prepared plan, a manager who is related that part is responsible. It is the subject that each manager according to his authority makes a range of tactic decisions about the implementation of the plan Bozkurt and Ergun,p.
In the content of the strategy concept, there are long termed thinking, good perception of the environment and well identification of the target. Accordingly, when it is said strategy, it is mentioned as the aim and goals which have clear vision, prudential and planned ways and techniques.
Strategy word transferred by French to Turkish does not have the exact equivalent in Turkish. In other words, it means the determination of ways to reach quantitative goals which are stated with numbers in anticipated time Garih,p. Indeed, strategy is a military oriented concept used to mean an aim of gaining a battle or a conflict in a war.
However, today we use this concept in every area of our life.
The main research topics of strategic management are forming a strategy, determining the best strategy among other options, more strong and effective strategies implementation towards to opponent strategies in the competitive markets Aktan,p.
Even in the smallest of businesses, determination of policies is created by the one who knows or guesses all the opportunities and conjuncture of a particular market. In business, primary strategies and strategist are needed to make real policies that have the characteristics of aim.
Strategies, by gathering available numeral opportunities, produce strategies which are going to realize those policies. In that process, if businesses act based on top manager or under the presidency of top manager a business executive committee rather than board directors, their prospects are going to be high Garih,p.
Also, it is pointed out that today the important thing is not the strategy but the using strategy concept. It is emphasized that a business may have multiple strategies.
The strategy concept as well as being a current concept in the defense area, it has been used in management for a very long time. Strategy in management science shows the ways of reaching the goals of the businesses. Especially in management science, business strategies towards their competitor cause to rise first strategic planning and then a discipline called strategic management Aktan,p.
In this sense, to reach the determined goals, strategy consists of primary aims, goals or purposes, important policies, and plans. Strategy in business management is the fullest extent of clarifying the confusion that occurs among the different functions of the business, regulating determined characteristics of general aims and selective decisions about reaching to optimum in an economic environment.
With the purpose of meeting expectations of risk bearers, strategy can be identified as an adaptation activity to activity area, environment, and resources. It is possible to categorize strategy such as designed, offered, and expected by the manager, prudential fictionalized strategies and actualized distinguished strategies.
Fictionalized strategies consist of aims, policies, and plans that can be separate as overall and narrow-scoped. Distinguished strategies, on the contrary, fictionalized strategies, base the past because fictionalized strategies do not come true always as it is fictionalized.
Another important strategist, namely Chandler, identifies strategy as preparing suitable operation programs by identifying long-termed aim and goals and allocating necessary sources to make real these aims.Strategic analysis is not just about understanding change, it is about turning this into concrete actions through generating options and choices, making decisions and integrating this into your organisation’s planning process.
The worth of SWOT analysis is often dependent on the objective insight of those management individuals who conduct the SWOT analysis. If management (or consultant management) is able to provide objective, relevant information for the analysis, the results are extremely useful for the company.
The Importance of the Strategic Management Process in the Knowledge-Based Economy strategic management is the key factor in achieving organizational performance. Analysis and judgment are the most important factors. The right choice and. The Importance of Strategic Management in Business Linda Herman Management Policy and Strategy MTAU Professor Richard Corum March 10, Strategic management has become very popular and important to business for a variety of reasons.
Performance management processes are critical to realigning talent with the job requirements, culture and overall strategy of an organisation. Typically performance appraisals are carried out annually, however, an organisation depending on their culture and needs could have more casual discussions on a bi-monthly or quarterly basis.
a strategy for the organization as a whole that is top management's responsibility, there are strategies for each line of business the organization is in; there are strategies at the functional area level (manufacturing, marketing, finance, human.