Influential management consultants and academics (for example Champy,
1996; Kotter, 1996)^21 emphasize that leadership is the most important and
difficult part of the strategic implementation process
Strategy evaluation is an activity that determines to what extent the actual
change and performance match the desired change and performance.
The strategic management model depicts the five major activities as forming a
rational and linear process. It is, however, important to note that it is a
normative model, that is, it shows how strategic management should be done
rather than describing what is actually done by senior managers (Wheelen &
Hunger, 1995). As we have already noted, the notion that strategic decision-
making is a political process implies a potential gap between the theoretical
model and reality.
Hierarchy of strategy:
Another aspect of strategic management in the multidivisional business
organization concerns the level to which strategic issues apply. Conventional
wisdom identifies different levels of strategy - a hierarchy of strategy.
- Corporate
- Business
- Functional.
Corporate level strategy
Corporate-level strategy describes a corporation's overall direction in terms of
its general philosophy towards the growth and the management of its various
business units. Such strategies determine the types of business a corporation
wants to be involved in and what business units should be acquired, modified
or sold. This strategy addresses the question, 'What business are we in'?'
Devising a strategy for a multidivisional company involves at least four types
of initiative: