Strategic Management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions.
The strategic management process involves analyzing cross-functional business decisions prior to implementing them. Strategic management typically involves :
- Analyzing internal and external strengths and weaknesses.
- Formulating action plans.
- Executing action plans.
- Evaluating to what degree action plans have been successful and making changes when desired results are not being produced.
- Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members.
- The employees become more trustworthy, more committed and more satisfied as they can co-relate themselves very well with each organizational task.
- One of the major role of strategic management is to incorporate various functional areas of the organization completely, as well as, to ensure these functional areas harmonize and get together well.
- Another role of strategic management is to keep a continuous eye on the goals and objectives of the organization.
Who should be involved in the strategic planning process?A core planning team from within the organization, and a wide group of community stakeholders should have input. Overall leadership should come from as high in the organization as possible.