Strategic Management

Definition:-

Strategic management is the management of the resources of an organization to meet its objectives and goals. Strategic management requires the establishment of targets, the analysis of competitive environments, internal organization analysis, and strategies to be assessed, and management implementing strategies throughout the company.

Introduction to Strategic Management

Strategic management is demanding and exciting. Every part of the organization plays a role in strategic policy – its staff, its budgets, manufacturing processes, its clients, etc. It makes important decisions about the company 's future course – its mission, it's capital, and how it deals with the world in which it works.

• Strategic management can be defined as the aim and the plans and actions of the organization to achieve this objective.
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• It is a series of management decisions and actions that decide a business company's long-term success.
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• It includes the development and execution of strategies that will help the organization and its environment to achieve its organizational objectives.
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• Strategic management is no replacement for conventional management

Strategic Management by Authors

"Strategic management is concerned with the of the basic long term goals and the objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals."

                                            - Alfred Chandler;1962

"Strategic management is the set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company's objectives. "

                                            - Pearce and Robinson,1988

"Strategic management is the process of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective."

                                                -Fed R David, 1997

Types of SM

Types of strategies in  strategic management

Five types of SM

Competitive Strategy:- 

A competitive strategy may, after examination of the strengths and weaknesses of the latter and comparison, be defined as a long term action plan which the company dedicates to achieving a competitive advantage over competitors. The strategy can take measures to resist the competitive stresses of the market, attract customers, and help strengthen the market position of the company.

Corporate Strategy:- 

The corporate strategy is the organization's highest strategic plan, defining general organizational priorities and objectives and how strategic management tasks are carried out. The vision of an organization or organization's management is long-term, clearly established.

Business Strategy: -A strategy for business refers to the actions and decisions made by an organization to achieve its business goals in its market and to be successful. It determines what the organization wants to do to achieve its goals and can help direct decision-making in the recruiting and allocation of resources.

Functional Strategy:-

The most popular management functional strategies are financial strategy, marketing strategy, strategy for growth, human resources strategy, and research and development strategy. The dispute concerns in particular the validity of research that illustrates functional strategies.

Operating Strategy:-

Operational approaches refer to the techniques used by organizations to accomplish their objectives. Through designing organizational plans, an organization will analyze and deploy effective and productive capital, employees, and working process structure.

Strategic management process has the following steps:-

Step1, Mission, and Goals

The first step in strategic management is the evaluation of senior managers in relation to the current mission and goals of the organization. The mission describes the values and aspirations of the organization and indicates the direction to be followed. The aims are to achieve the desired objectives through the organization's actual operating procedures. It typically explains observable short-term effects

Step2, Environmental Scanning:-

Environmental scans refer to a method of information gathering, review, and provision to strategic ends and help to examine the internal and external factors that influence an organization. If the procedure has been implemented, management will constantly review and attempt to enhance it.

Step3, Strategic formulation

Environmental scans refer to a method of information gathering, review, and provision to strategic ends and help to examine the internal and external factors that influence an organization. If the procedure has been implemented, management will constantly review and attempt to enhance it.

Step4, Strategy implementation,

The execution of the plan involves adopting and executing the plan selected by the company. The execution of the plan involves the organization's building framework, resource allocation, decision-making process, and efficient human resources management.

Step5, Strategy evaluation:-

Strategy assessment-an overview of internals and externals, success analysis, and corrective measures-is the final step in the strategic management process Evaluation ensures that the corporate plan and its execution fulfills corporate objectives.