Question

. Ownership and management objectives in the process of strategic management

- What is the importance of ownership objectives and what is their position in management of a business?

- Specify managerial objectives and the role of managerial objectives in strategic management.

- What is the difference between ownership, management and corporate strategy?

Answer 1

In the field of management, strategic management includes the organization and implementation of key goals and initiatives undertaken by the top management of the organization on behalf of the owner, based on resource considerations and assessing the internal and external environment in which the organization operates. Strategic management provides the overall management of the enterprise and includes specifying the goals of the organization, developing policies and plans to achieve these goals, and then allocating resources to implement the plan. Academics and practitioners have developed a number of models and frameworks to support strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is unstable. Models often include a feedback cycle to monitor performance and to inform the next plan.

Michael Porter identifies three strategic principles:

Creating a "Special and Valuable [Market] Location"
Make a concession by choosing "what not to do"
Create a "fit" by aligning the company's activities together to support the chosen strategy

Corporate strategy includes answering one key question from a portfolio perspective: "What kind of business should we run?" Business strategies include answering the questions: "How to compete in this business?"

Ownership management and practice often distinguish between strategic management and operational management, with operations management primarily concerned with improving efficiency and cost management within the limits set by organizational strategies. .