Austin Journal of Business Administration
and Management
Open Access
Austin J Bus Adm Manage - Volume 2 Issue 3 - 2018
Submit your Manuscript | www.austinpublishinggroup.com
Palladan et al. © All rights are reserved
Citation: Palladan AA and Adamu MA. An Overview of Strategic Management Practices. Empirical Evidence.
Austin J Bus Adm Manage. 2018; 2(3): 1033.
Abstract
The paper reviewed relevant literatures on strategic management practice.
Being a conceptual paper, we start by highlighting the origin and meaning of
strategy and strategy planning. This was followed by discussions on factors that
affect strategy formulation, strategy implementation as well as factors bedeviling
strategy implementation. Essentiality of strategic management practices as a
radical improvement method was equally highlighted.
Keywords: Strategic management; Strategy planning; Strategy
implementation
Introduction
e term strategy originated from a Greek word “strategos”,
meaning army guidance from the position of Commander General.
e use of this concept dates to at least 400 years B.C. (Jeżak 1990).
Prussian military general and theoretician Karl von Clausewitz
argued that strategy is concerned of creation of the war plan and
determination of war campaigns and individual undertakings
under their scope (Pszczołowski 1976). e word “strategy” gains
recognition in other fields of human activity, particularly in politics
and, noticeably later, in economy. However, in the second half of the
19
th
century, down with development of the U.S. economy, phenomena
of strategic element occurred. Business strategies caused speeding
up of business development and resulted also in the changing of the
modern management (Gliński, Kuc & Szczepankowski, 2000). is
latter on led to the spread of the concept to corporate management.
ere is no single definition of strategic management, which
is generally acceptable (Markiewicz 2011). Despite all that, we
present here some of the definitions found in the extant literatures.
It is a top management activity, which deals with decisions making
in, regards to the purpose of the organizational mission, vision,
philosophies, objectives, strategies and well-designed policies. It
also encompasses the development of long term plans for efficient
management of environmental opportunities and threats in line
with the organizational strengths and weaknesses (Sababu, 2007).
According to Pearce and Robinson (1991), Strategic Management
involves a combination of decisions and actions that guide toward
the formulation and implementation of plans intended to achieve
organizational objectives. Strategic management entails the planning,
directing, organizing and controlling of firm’s strategies that reflects
decisions and actions that enhances a company’s competitiveness.
Irwin (1995) opined that strategic management is a business
operating game plan game plan, for enhancing firm’s competitiveness,
creating customer satisfaction and achieving targeted performances.
Strategic management led to business continuous success, growth
and competitive advantage brought about by implementing the
predetermine plans efficiently and effectively. is action facilitates
the means, through which organizations analyze the environment,
create their desired position, fashion out appropriate strategies
and implement them accordingly. Strategic management process
entails understanding the strategic situation of an organization,
Review Article
An Overview of Strategic Management Practices
Palladan AA
1
* and Adamu MA
2
1
School of Business, Fce (T) Gombe, Nigeria
2
Muhammad Ahmed Adamu School of Business Fce (T)
Gombe, Nigeria
*Corresponding author: Ahmad Aliyu Palladan,
School Of Business, Fce (T) Gombe, Nigeria
Received: April 12, 2018; Accepted: May 29, 2018;
Published: June 05, 2018
making strategic options for the future and turning strategy into
action. It involves strategic analysis, choice and execution. More so,
Porter (1985) opined that strategy is the aspirations and practices
an organization employ in order to stay afloat amidst severe
competition. A well-managed organization should have the ability
to seriously find a place for itself in the contemporary competitive
business environment [1]. Strategy is a management technique
which gives an organization direction. is refers to holistic actions
that are tailored towards actualizing the future of the organization.
Porter (1980) affirmed that analysis of strategy or strategic analysis
is part of strategic management method that examines the forces of
the external environment, organization capability and expectation of
stakeholders. Strategy execution is the conversion of strategy plans
into action. It entails implementation of strategies and managing the
resulting changes.
Components of strategic management
Rahimnia, Castka, and Sharp (2005) argued that similar
types of strategies have been established across basically different
organizations (publishing firms, automotive industries, hospitals,
administration, ICT companies, and tertiary institutions) because
they are of facing related environmental conditions notwithstanding
of their internal organizational differences.
Strategic planning
According to Bryson (2004, p. 6). defines strategic planning
as “an effort to produce fundamental decisions and actions that
shape and guide what an organization is, what it does, and why it
does it” Much wider than program, project, budget, or operation
planning’s, strategic planning is ‘big picture’ approaches that solve
the most serious issues facing an organization’s long-term efficiency
and effectiveness (Kemp, Funk, & Eadie 1993; Poister & Streib,
1999). Its usage has grown reasonably over the past decades, at all
levels of government and agencies as they have recognized the need
to respond to emerging issues promptly. Again they need to adjust
to changing circumstances, and move into the future in a resolute
in order to ensure continued viability and fit with a changing
environment (Berman & West, 1998; Berry & Wechsler, 1995; Poister
& Streib, 2005). Several procedures for conducting formal strategic-
planning attempts have been postulated (Bryson, 2004; Denhardt,
1985; Eadie, 1983; Gibson, 1993; Kauf man & Jacobs, 1987; Nutt &
Backoff, 1992; Pindur, 1992), but all advocates of strategic planning