The Benefits To The Use Of Contingency Funds In A Project
A contingency fund is cash or other assets reserved to address unforeseen circumstances or losses in a business. The role of the contingency fund is to improve a company's financial stability by developing a safety net that the firm can use to fill emergency needs. It can also be used to reduce the need to take out high-interest loans, such as credit cards, to cover unexpected expenses. Define strategic management and the role it plays in a project.
Strategy management is an organizing process that involves both formulation and implementation. Strategic management cannot be conceived as mere operational effectiveness alone, nor as just armchair theorizing and strategic planning; both are important aspects of strategy, and neither is a sufficient conception of strategic management without the other. Strategic management is dynamic, involving both content and process, planning and action. Moreover, strategy can be emergent and is often the realization of both intentional strategy formulation and, as the organization acts on those plans, tactical responses to the unexpected.
Second, strategic management involves considerations and constraints that originate both inside and outside the firm. Managers must not only be clear about both the firm’s distinguishing features and its organizational objectives, but also be able to marshal its resources and leverage its capabilities to achieve those objectives.
Third, strategic management is essentially an integrative exercise. The functional areas of, marketing, accounting, operations, and human resources often apply specific paradigms to specific business problems and considerations, usefully setting aside complexity in favor of a sharp focus on various disciplinary considerations. In contrast, strategy is about bringing all the underlying values of these disciplines back together. In practice, business managers do not typically encounter challenges as isolated, atomistic problems with narrow disciplinary implications; rather, they navigate business issues through a whole range of complex, cross-disciplinary considerations.
Strategic management is also integrative, as Andrews suggests, insofar as it enables value creation for all stakeholder groups — financiers, employees, customers, suppliers, and communities—and not just one particular stakeholder. Viewed through the integrative lens of strategy, commonly invoked axioms such as “maximizing shareholder returns” can be useful to. It is my opinion that strategic management represents the processes of foundation, drafting, implementation and control-evaluation of a strategy that satisfy fulfilling the organization’s mission in a continuously changing environment. In order to understand the operating mechanism of the strategic management process, I will present its stages. In this context, it has to be said that many specialists, as I consider that they have “captured” best the operating mechanism of the strategic management process, while using a language easy to understand both by a specialist and especially by a simple reader, offering the possibility to understand the importance of this concept within an organization.
