Empowered to formulate

Strategic precaution involves decision making , formulation and implementation of plans and carrying out actions towards achieving the objectives as changes are brought forth in the business line environment and complexity of the equines. It is a continuous, long term process that requires strategic foresight and consists of risk.The strategic management is empowered to formulate policies regarding capital investment, mergers, expansion and so on. Some of the areas looked at under this management Operations decisions pertaining to production scheduling, inventory levels, pricing, marketing strategy, etc. These are often repetitive in nature, decentralized and at a the functional level Administrative changes in organization triggered by strategic and operating problems. Strategy formulation SOOT Analysis Strength- Weaknesses of the firm-opportunities-Threats. The four conditions willing indicate the portfolio strategy and other strategies it should pursue.It presents itself as a sy stematic approach. Strength strong brand name, quality products, state of the art tech, strong R&D support, good human resource management, good industrial relations, good reserves and high credit rating, efficient board of directors Weaknesses ridiculous sales force, weak distribution, poor inventory management, high costs, poor human resources, poor morale, low credit rating and inefficient managers. Opportunities regulation, import liberalizing, economic boom, favorable change in client behavior, consumerism Threats political instability, recession, lower income and reduction in population.TOES Matrix strategy- formulation tool based on internal(s w) and external factors(o t) SO strategy maximize strength, maximize luck WOW strategy minimize weakness, maximize opportunity SST strategy maximize strength, min threat WIT strategy min weakness, min threat. Strategic management has its downside too it requires highly experienced or qualified members making it a costly affair. Even go od strategies lacking implementation may not bow the expected result thus causing frustration. The environment can be highly unpredictable bringing risks and a MIS-timed strategy can result in heavy losses.