Top management do not really have control over strategic direction to Essay

Top management do not really have control over strategic direction to the extent that the design lens suggests. Critically discuss - Essay Example As Michael Porter (1972) opines that core of general management is strategy which he elaborates as: "-------developing and communicating the company's unique position, making trade offs, and forging fit among activities". Strategic position is based on customers' needs, customers' accessibility or the variety of a company's products and services. The definitions of strategy, varied in nature, depth and coverage, offer us a glimpse of the complexity involved in understanding this daunting, yet interesting and challenging concept. For many companies and most of the time, a single strategy is not only inadequate but also inappropriate. The need is for multiple strategies at different levels. Segregated units, known as profit centers for strategic business units (SBU). A complementary concept to the SBU, valid for the external environment of a company, is a strategic business area (SBA). There are various levels such as organizational and strategic levels. Corporate level strategy is ove rreaching plan of action covering the various function performed by different SBU'S. Apart from these levels, occasionally companies plan at some other levels and often set strategies at a level higher than the corporate level. These are called societal strategies. Corporate and Business level strategies derive their rationale from the societal strategy. Societal strategies are manifest in the form of vision and mission statement, while functional and operational strategies take the shape of functional and operational implementation, respectively. Role of top management: Now to implement strategies at various levels various level managers have to do the conscious decision-making. Decision-making is the most important function of any manager. Strategic decision making is the prominent task of the top management. The difference lies in the levels at which they operate. While decision-making pertains to all managerial functions, strategic decision making largely relates to the responsibilities of the Top management. Strategic tasks are by their very nature complex and varied. Decision-making in performing strategic tasks is, therefore, an extremely difficult, complicated and at times, intriguing and enigmatic process. In the process of strategic management the basic thrust of strategic decision-making is to make a choice regarding the courses of action to adopt. The fundamental strategic decision relates to the choice of a mission. With regard to objective setting, the top management is faced with alternatives regarding the diffe rent yardstick to measure performance. Finally, at the level of choosing a strategy, the top management chooses from among a number of strategic alternatives in order to adopt one specific course of action, which would make the company achieve its objectives and realize its mission. Apart from the fundamental decisional choice, as pointed above, there are numerous occasions when the top management has to make important strategic decisions. Environmental threats and opportunities are abundant; that the top management focuses its attention only a few of those. Likewise, there are many company strengths and weaknesses; the top management considers only a limited member at any given time. With regard to resource