Question

Define strategic management process, and discuss at least five forces that influence the formality of the strategic-management process within organizations, especially with the advent of COVID-19. (please be very detailed in your explanations)

Answer 1

In the field of the advent of COVID-19, strategic management includes the formulation and implementation of the main goals and initiatives undertaken by the senior managers of the organization on behalf of the owners, based on consideration of resources and assessment of the internal and external environment in which the organization operates. Strategic management provides 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 plans. Academics and practicing managers have developed a number of models and frameworks to support strategic decision-making in the context of a complex environment and the dynamics of competition. Strategic management is not static; models often include a feedback cycle to monitor performance and to inform the next round of planning.

Michael Porter identifies three principles underlying the strategy:

creation of a "unique and valuable [market] position"
make compromises by selecting "what not to do"
creating "fit" by aligning the company's activities with each other to support the chosen strategy

The corporate strategy includes answering a key question from the portfolio point of view: "What kind of business should we be in?" The business strategy includes an answer to the question: "How to compete in this business?"

Management theory and practice often distinguish between strategic management and operational management, with operational management primarily concerned with improving efficiency and controlling costs within the limits set by the organization's strategy.