2.1 Strategic Management--The Context

Strategic management has been variously defined as the science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives (David, 2001). Let us consider the relevant components of this definition as they apply to project management. Strategic management, then, consists of the following elements:

• Formulating, implementing, and evaluating
• Cross-functional decisions
• Achieving corporate objectives
• Formulating Strategies
  • Developing vision and mission statements
  • Conducting an external audit
  • Performing an internal audit
  • Establishing long-term objectives
  • Generating, evaluating, and selecting strategies
• Implementing strategies
  • Managerial
  • Financial
  • Technological
  • Functional
• Measuring and evaluating performance

We will spend some time looking at each of these in more detail in the following pages.