The provided reference focuses on the dimensions of strategic issues, not strategic management itself. Therefore, this answer will address the six dimensions that characterize strategic issues.
While strategic management encompasses a broader scope, understanding the characteristics of strategic issues is critical for effective strategic decision-making. According to the reference, strategic issues have identifiable dimensions that set them apart.
Here's a breakdown of these six dimensions, based on the provided reference and generally accepted strategic management principles:
| Dimension | Description | Example |
|---|---|---|
| Requires Top-Management Decisions | Strategic issues are complex and require the attention and approval of senior leadership. | A decision to enter a new international market would need top-management approval. |
| Allocation of Large Resources | These issues involve significant investments of capital, personnel, and other company resources. | Launching a new product line requires substantial investment in R&D, marketing, and production. |
| Long-Term Impact | The outcome of strategic decisions significantly affects the organization's long-term success and prosperity. | Choosing the wrong technology platform can have lasting negative consequences on a company's competitiveness. |
| Future-Oriented | Strategic issues deal with uncertain future conditions and require foresight and planning. | Predicting future consumer trends and adapting business models accordingly. |
| Impact on Multiple Functional Areas | Strategic issues often affect various departments and functions within the organization. | Implementing a new customer relationship management (CRM) system impacts sales, marketing, and customer service. |
| Require Consideration of External Environment | Strategic issues are significantly influenced by the external environment like competitors, regulations, and economic conditions. | Changes in government regulations regarding data privacy affect data collection and marketing strategies. |
Therefore, while the exact phrase "six dimensions of strategic management" is not directly addressed, the six dimensions of strategic issues provide a critical insight into understanding and tackling challenges within the strategic management process. These issues, as highlighted in the reference, require top-management decisions, involve the allocation of large amounts of company resources, and are likely to have a significant impact on the long-term prosperity of the firm.
