min pro strategic management

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About Strategic Management

Strategic or institutional management is the conduct of drafting, implementing and

evaluating cross-functional decision making that will enable an organization to achieve

its long-term objectives. It is the process of specifying the organization' s mission , vision

and objectives, developing policies and plans, often in terms of projects and programs,

which are designed to achieve these objectives, and then allocating resources to

implement the policies and plans, projects and programs. A balanced scorecard is often

used to evaluate the overall performance of the business and its progress towards

objectives.

Strategic management is a level of managerial activity under setting goals and over

Tactics. Strategic management provides overall direction to the enterprise and is closely

related to the field of Organization Studies. In the field of business administration it is

useful to talk about "strategic alignment" between the organization and its environment or

"strategic consistency". According to Arieu (2007), "there is strategic consistency when

the actions of an organization are consistent with the expectations of management, and

these in turn are with the market and the context." Strategic management includes not

only the management team but can also include the Board of Directors and other

stakeholders of the organization. It depends on the organizational structure.

Strategic management is an ongoing process that evaluates and controls the business and

the industries in which the company is involved; assesses its competitors and sets goals

and strategies to meet all existing and potential competitors; and then reassesses each

strategy annually or quarterly [i.e. regularly] to determine how it has been implemented

and whether it has succeeded or needs replacement by a new strategy to meet changed

circumstances, new technology, new competitors, a new economic environment., or a

new social, financial, or political environment.

1
http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Balanced_scorecardhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Balanced_scorecardhttp://en.wikipedia.org/wiki/Business


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About Functional Management

Functional management is the most common type of organizational management . The

organization is grouped by areas of specialty within different functional areas (e.g.,finance, marketing, and engineering). Some refer to a functional area as a "silo."

Communication generally occurs within a single department. If information or project

work is needed from another department, a request is transmitted up to the department

head, who communicates the request to the other department head. Otherwise,

communication stays within the department. Team members complete project work in

addition to normal department work.

The main advantage of this type of organization is that each employee has only one boss,

thus simplifying the chain of command

STRATEGIC Versus FUNCTIONAL (Operational Management)

Category Strategic Management Functional ManagementDuration of period Decisions taken to achieve long-

term goals are considered

strategic decisions

To achieve short-term goals,

decisions taken are

considered, functional

decisions .Management levels Such kind of decisions are taken

at top level of management i. e.

directors, managers etc

Such kind of decisions is

taken at lower or middle

level of management i. e.

officers of lower or middle

level.Type of work Work of strategic decision is

intellectual process

Functional decision is

administrative process

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http://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Management


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Result On account of strategic decision,

production and profitability of

unit is increasing.

On account of functional

decision, departmental

planning becom

successful and coordination

of activities is maintainedStudy of environment It is necessary to make study of

internal as well external

environmental factors affecting

business, while taking strategic

decisions.

For functional decisions, it

is necessary to make study

of internal factors.

Requirements For strategic decisions it is

necessary to obtain advice of

experts of production, technical,

marketing and financial level

For functional decisions, it

is necessary to have

administrative experts,

resources and facilitiesFinancial problems On account of strategic decisions,

financial requirement raises at

large scale and in which capital

expenses would be more

In functional decisions,

short-term financial

requirement raises and in

which current nature of

expenses would be more.Basis of information For strategic decisions,

information gathered from the

current sources and forecasting is

used

For functional decisions,

past as well current

information is used .

Organizational

requirement

For strategic decisions, flexible

organization is required.

For functional decisions,

steady and functional

organization is required

Leadership Such type of Leadership is

required, which can bring

necessary changes in future

Such type of Leadership is

required, which can

maintain current situation.

STRATEGIC MANAGERS and FUNCTIONAL MANAGERS3


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QUALITIES STRATEGIC MANAGER FUNCTIONAL MANAGER Competencies At this level, managers must exhibit

succinct and compelling communication,

the ability to inspire and lead organization-

wide change, entrepreneurship, a passion for

results, and tenacious drive for high

performance at all levels.

At this level, look for the

ability to be innovative and

think out-of-the-box when

introducing and managing

change. Additionally,

functional managers will need

to develop strong internal

partnerships ac

departments or work groups,

and build strategicrelationships with external

clients to ensure loyalty and

satisfaction.Knowledge Strategic managers need to make well

thought-out, long-range plans and thus must

intimately understand their customers

needs and the competitive landscape. They

must also have the ability to understand and

drive key talent management functions,

such as compensation, training, and

performance management and

measurement.

An functional manager

candidate should demonstrate

in-depth knowledge of the

companys business model,

financials, and competitive

landscape. Further, they

should have an understanding

of the other business units

processes, products and

procedures in all markets domestic and international.

Experience Managers at the strategic level need to have

experience in creating a corporate culture,

cost control, and global or expatriate

Functional managers should

have some experience in the

following areas: leading a

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managership assignments. This is even

more crucial at this level since these senior-

level managers drive the culture and

direction of the organization.

business unit with profit/loss

accountabilities, leading cross-

functional teams, preparation

of business plans, and

managing a significant

functionPersonal

Attributes

Finally, your candidate should exhibit high

levels of ambition, inquisitiveness,

imagination and innovation, and a high

learning orientation

Finally, your candidate should

exhibit personal attributes like

receptivity to feedback,

flexibility/adaptability, a

strong desire for continued

growth and development, andacceptable risk-taking.

Conclusion Functional plans focus on issues of control and efficiency

Strategic plans focus on issues of change, adaptation and innovation

BIBLIOGRAPHYS.no Name of the Book/Magazine/Article Author Publisher/Source1

Strategic Management And BusinessPolicy

Azhar Kazmi

Tata Mgraw Hill(2008)

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2Strategic Management: Concepts and

Cases, 12th Edition

Fred David Prentice hall of india

3Business Policy And StrategicManagement: Concepts And

Applications

GollakotaKamala

Phi Learning(2009)

Web sites Referred:

Websites referred

http://www.greatleadershipbydan.com/2008/10/strategic-vs-operational-leaders.html

http://www.biodieselmagazine.com/article.jsp?article_id=1966

INDEX

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http://www.flipkart.com/author/gollakota-kamala/http://www.flipkart.com/author/gollakota-kamala/http://www.flipkart.com/author/gollakota-kamala/http://www.greatleadershipbydan.com/2008/10/strategic-vs-operational-leaders.htmlhttp://www.flipkart.com/author/gollakota-kamala/http://www.flipkart.com/author/gollakota-kamala/http://www.flipkart.com/author/gollakota-kamala/http://www.greatleadershipbydan.com/2008/10/strategic-vs-operational-leaders.html


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S.NO Contents Page No

1 About Strategic Management 12 About Functional Management 23 Strategic Management versus Functional

Management2-4

4 Managers Qualities & Attributes in Strategic &

Functional Management

4-5

5 BIBLIOGRAPHY 6

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MINI PROJECT

ACADEMIC YEAR : 2009-2010

SEMISTER : 3rd SEMESTER MID : 1st MID

SUBJECT : STRATEGIC MANAGEMENT

TOPIC : Compare and Contrast Strategic

Management & Functional Management

SUBMITEDBY

BALAMURALI BHASKARAN09331E0004

SCHOOL OF MANAGEMENT STUDIES

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MVGR COLLEGE OF ENGINEERINGACCERDITED BY NBA & NAAC A GRADED

(APPROVED BY AICTE & PERMANENTLYAFFILIATED TO JNTU KAKINADA)VIZIANAGARAM 535005

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