Strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives. As this definition implies, strategic management focuses on integrating management, marketing, finance or accounting, production or operations, research and development, and information system to achieve organizational success. Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation with strategic planning referring only to strategy formulation, (David, 2013).
(David, 2013), the strategic management process consists of three stages namely strategy formulation, strategy implementation, and strategy evaluation. Strategy formulation includes developing a mission and vision, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternatives strategies and choosing particular strategies to pursue. Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. Strategy implementation includes developing a strategy-supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information systems, and linking employee compensation to organizational performance. Strategy evaluation is the final stage in strategic management. Managers desperately need to know when particular strategies are not working well. Strategy evaluation is the primary means for obtaining this information. All strategies are subject to future modification because external and internal factors are constantly changing. Three fundamental strategy evaluation activities are reviewing internal and external factors that are the bases for current strategies, measuring performance, and taking corrective actions.
William Edwards Deming (October 14, 1900 – December 20, 1993) was an American statistician, college professor, author, lecturer, and consultant. Born in Sioux City, Iowa, William Edwards Deming was raised in Polk City, Iowa on his grandfather Henry Coffin Edwards's chicken farm. He was the son of William Albert Deming and Pluma Irene Edwards. In 1917, he enrolled in the University of Wyoming at Laramie, graduating in 1921 with a B.S. in electrical engineering. In 1925, he received an M.S. from the University of Colorado, and in 1928, a Ph.D.Yale University. Both graduate degrees were in mathematics and mathematical physics, (Anonymous, 2014).
Deming worked as a mathematical physicist at the United States Department of Agriculture from year 1927 to 1939, and was a statistical adviser for the United States Census Bureau from year 1939 to 1945. He was a professor of statistics at New York University's graduate school of business...