Strategic Management and Government Regulation
Introduction
Strategic Management implies implementing goals and initiatives by a company’s management to manage resources that the company needs both internally and externally. It entails the following:
Spelling out an organization’s vision
Determining duration during which the said objectives are to be met.
Auditing the current situation of the organization to determine its capabilities.
Analyzing the current environment within the given duration to determine its strengths and weaknesses.
Selecting the appropriate plan of action to be followed.
Integrating the organization’s efforts into the laid out strategy and objectives.
Factors affecting use of strategic management in government are: the government is slower in adopting the strategic management policy, government managers have less autonomy and control in strategic decision making, and governmental budgeting procedures are usually short term.
SWOT
SWOT analysis is a method used to determine the Strengths, Weaknesses, Opportunities and Threats in an organization. The strengths and Opportunities help to achieve the objectives while Weaknesses and Threats are harmful to achieving the goals.
Strategic Management Tools
Are measures used to determine the effectiveness of an organization's strategy and goals? They include;
Best Practices- A group looks at the strongholds of its competitors and imitates their business approach in their successive areas in a bid to become more productive.
Benchmarking- An organization compares its work progress with that of its competitors or partner organizations and corrects on its weaknesses while building more on its strengths.
Management Scorecards- A group prepares a performance tally sheet that counts its functions against the achieved objectives to determine the current status of the organization.
The following are analytical tools substitute strategic management tools in strategic planning. They are:
SWOT Analysis- Identifies an organization’s position in the market against its competitors.
Gap Analysis- Monitors an organization’s progress toward achieving its objectives and strategic goals.
PEST Analysis- Evaluates the Political, Economic, Social and Technological environment of the organization.
Five Forces Analysis- Evaluates the position of an organization in the market which is simply the basis of bargaining for the suppliers and customers, threats of new entrants and substitutes and rivalry of competition.
References
Denison, D.R. (2013). Organizational Culture: Can it be a Key Lever for Driving Organizational Change.
Shafritz, J.M., Russel, W.E., & Borick, C.P. (2011). Introducing Public Administration: Strategic Management and Government Regulation. New Jersey, US: Pearson Education …
