residential construction

Characteristics of strategic decisions
They are concerned with the scope of the organization's activities and the interface with the environment.
They seek to match the strengths and weaknesses of the firm to the opportunities and threats in the market place
They seek to match the firm's activities to the capabilities of of the organization and its resources.
They commit the organization to changes in the use of its existing resources or to obtaining additional resources
They affect operational and administrative decisions
They are complex because there is always a high degree of uncertainty about environmental forces and outcomes.
They affect the long term direction of the firm.
. Why is strategic management necessary?
A rapidly changing environment requires greater corporate awareness of changes and their implications for the organization.
There is need for companies to have stability as far as possible and avoid the crises brought about by strategic surprises.
The systematic appraisal of the strengths and weaknesses of the organization and matching these to the opportunities and threats in the environment is crucial for survival in a competitive market.
the larger the organization the more difficult is to change quickly - hence the need to anticipate change that much earlier in order to develop an appropriate response.
Corporate harmony is enhanced if the organization is seen to have a clear strategy. People then know where the organization is going and can tailor their contribution accordingly.
Consistent financial performance is likely if the organization's activities are systematically thought through with realistic forecasting of the results.
Who should do it?
The strategic management role can be filled by an internal individual or team or an external consultant or executive director. A combination of both internal and external modes is sometimes used.

When should it be done?
The timing of the strategic management is crucial to its success. Finding time time to do it is also vital.

What strategies are best?
There is no "best" strategy which is applicable in all circumstances. A contingency approach to strategic management is essential, based on the objectives of strategic managers.

Levels of Strategy
The corporate level: Which businesses or markets the company should be in
The business level: How to compete in a particular market
The operational level: Decisions by heads of functional departments - estimating, buying, plant, etc, and decisions by managers of construction projects often impact on the whole business since individual projects represent a large proportion of a building contractor's turnover and therefore profit.