Stategic management (strategic thinking) Essay Example | Topics and Well Written Essays - 750 words

Stategic management (strategic thinking) - Essay Example The notion of strategy holds its roots in military usage. According to Nickols, "In business, as in the military, strategy bridges the gap between policy and tactics. Together, strategy and tactics bridge the gap between ends and means" (2000, p. 1). Over the years, the definition of the word strategy has been interpreted in a variety of different ways by researchers and scholars. Nickols also claims that the concept of strategy consists of four rudimentary components: perspective, position, plan, and pattern. The official definition that he offers his readers after discussion the definitions proposed by others is that "Strategy is a term that refers to a complex web of thoughts, ideas, insights, experiences, goals, expertise, memories, perceptions, and expectations that provides general guidance for specific actions in pursuit of particular ends. Strategy is at once the course we chart, the journey we imagine and, at the same time, it is the course we steer, the trip we actually make" (2000, p. 1) Strategy can be difficult for a strategist because it often involves a lot of guesswork. No one can predict the future with full accuracy, so quite a few assumptions have to be made based on things such as past performance and experiences. Nonetheless, all strategies are based on goals, which mean managers have an ideal situation in mind to strive for, regardless of whether or not they know exactly how to get there. Strategy involves a lot of risk-taking, which also means that a lot of research has to be performed if it is to be as accurate as possible. Without a carefully made plan, an attempt at organizing a strategy can result in managers running around in circles, wasting money, and becoming quite frustrated (Nickols, 2000). Strategic decisions are made within an organization through a series of key steps. First of all, there is the communication stage where those with a vested interested gather together and exchange thoughts and ideas regarding a particular company's current situation versus where it could end up in the future. SWOT analyses are often conducted at this point. Once the desired end result has been determined, they are communicated continuously to those within the organization so that no one loses sight. Next, it is important that companies ensure a complete and thorough understanding of the desired end result through discussing issues related to it and gathering and observing feedback. One example of strategic decision making of this nature took place when Starbucks chose to redo their organizational structure around 2005, which is now relatively flat compared to the traditional organizational structure (Nickols, 2000). Strategic Thinking Mintzberg does an excellent job of providing advantages, disadvantages, facts, and folklores of strategic thinking in his literary works. Mintzberg claims that there are four myths regarding the job duties of a manager. First of all, people believe that managers tend to plan in a reflective manner, which is untrue since the often prefer to take action in a speedy fashion. Second, people tend to believe that managers are exempt from regular duties, but this is also untrue. Third, people tend to believe that managers always prefer concrete, paper evidence of information, when they in reality often prefer verbal