Strategic management is the science of formulating, implementing, and evaluating cross-functionaldecisions that enable an organization to achieve its objectives
Developing vision statements and mission statements.
Vision and mission statements establish asense of what the organization hopes to accomplish or what top managers hope it will become at somepoint in the future.
A corporate vision serves as a focal point for members of the organization who mayfind themselves pulled in multiple directions by competing demands.
Formulating, implementing, and evaluating
projects serve as the vehicles that enable companies to seize opportunities, capitalize on their strengths, and implement overall corporate objectives
Making cross-functional decisions
Business strategy is a corporate-wide venture, requiring the commitment and shared resources of
all functional areas to meet overall objectives.
Whether the organization is seeking market leadership through low-cost , innovative products, superior quality, or other means, projects are the most effective tools to allowobjectives to be met
Projects have been called the stepping-stones of corporate strategyThis idea implies that an organizations overall strategic vision is the driving force behind its project developmentthe examples illustrates the underlying theme that projects are the operational reality behind strategic vision.
Projects Reflect Strategy StrategyProjectTechnical or operating initiatives (such as new distribution strategies or decentralized plant operations)Construction of new plants or modernization of facilitiesRedevelopment of products for greater market acceptance.
Reengineering projectsNew business processes for greater streamlining and efficiency
Projects Reflect StrategyChanges in strategic direction or product portfolio reconfigurationCreation of new strategic alliancesMatching or improving on competitors products and servicesImprovement of cross-organizational communication and efficiency in supply chain relationshipsNew product linesNegotiation with supply chain members(including suppliers and distributors)Reverse engineering projectsEnterprise IT efforts
Promotion of cross-functional interaction, streamlining of new product or service introduction, and improvement of departmental coordination.
Concurrent engineering projects
Strategic alignment between a firms projects and its basic vision, objectives , strategies, and goals.
If, for example, a manufacturer of refrigeration equipment creates a vision statement that says, in part, that the company is in the business of supplying system components to world wide nonresidential air conditioning market