Scribd
Upload
9 views4 pages

Introduction Strategic Management

Uploaded by

Genrie Cantillo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
9 views4 pages

Introduction Strategic Management

Uploaded by

Genrie Cantillo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

STRATEGIC MANAGEMENT

The basic concept of strategic management consists of a


continuous process of planning, monitoring, analyzing and
assessing everything that is necessary for an organization to
meet its goals and objectives. In simple words, it is a
management technique used to prepare the organization for the
unforeseeable future. Strategy management helps create a
vision for an organization that helps to identify both predictable
as well as unpredictable contingencies. It involves formulating
and implementing appropriate strategies so the organization
can attain sustainable competitive advantage.

Stages Of Strategic Management?


In essence, strategic management is a streamlined process often adopted by
successful companies—big or small. It’s typically implemented company-wide and it’s
execution starts at the top. There are four stages in this process.

1.Assessment

The assessment stage is the most important step in developing a strategy. You need
to evaluate your strengths and weaknesses as you identify your target market and
look at how you can survive the competition. If something isn’t working, you can
come up with improved frameworks to perform better. The need for strategic
management is to focus on your mission and assess what needs to be done.

2.Formulation

After the assessment stage, you formulate a comprehensive strategy that should be
followed by the entire organization. Communicate the action plan across departments
so that everyone is familiar with the shared goal. The importance of strategic
management lies in helping a company focus on its goals.

3.Implementation

This is where teamwork plays an important role. The action plan developed in the
previous stage has to be shared among all members of the organization. Transparency,
communication, feedback, and navigating conflicts are some key concepts to tackle
when working in a team. They also help us to understand the importance of strategic
management. Focus on collective effort and proper execution of your organization’s
action plan. It’s important to collaborate with stakeholders to leverage team strengths
and achieve larger team goals.

4.Evaluation

Was your strategy successful? Did you achieve your organizational goals? What can
be improved? Evaluation is the final step in the process of strategic management.
Every organization needs strategic management to avoid failure. It’s important to
note that this is a continuous and cyclical process. Align your organization’s goals
with individual goals in a way that’s controlled, direct, and free of errors. Alter your
strategy if something isn’t going according to plan, promote teambuilding for
increased performance, and encourage feedback to identify gaps in communication.

Importance Of Strategic Management

 Identify Opportunities
Strategic management is necessary to identify opportunities. Tap into opportunities
and identify strengths and weaknesses by studying the internal structure of your
organization. Within every team, there’s unrealized potential that needs your
attention. You may even discover new ways to implement existing strategies.

 PrepareFor The Future


Strategic management helps you prepare for the future. Organizations can benefit
from understanding the importance of strategic management because it can help you
prepare for contingencies. A business environment is dynamic and fast-paced.
Evolve and adapt your strategies to keep abreast of vital changes in the business
sphere.

 Be Action-Oriented
Don’t become complacent in your management style. If you’re driven by action and
purpose, you can easily alter policies and business plans to drive the organization
forward. A sound action plan is sustainable and important for the growth and survival
of your company.

 StrengthenOrganizational Structure
Working in a team is important to achieve shared goals. Each member is dependent
on another for guidance, especially in a stressful situation. This gives rise to the need
for strategic management. You can reflect on your organization’s internal structure
and make changes wherever you feel necessary. Only a strong organizational
structure can endure testing times.

 Sustained Competitive Advantage


It’s necessary to have a sustained competitive advantage in today’s market. To do
well compared to other players in the market and avoid failure when faced with
setbacks, build a plan that’s viable and long-lasting.

The importance of strategic management lies at the intersection of your company’s


internal and external environments. Constructing a strategic vision with long-term
objectives in mind is useful for achieving organizational goals.

STRATEGIC MANAGEMENT PROCESS

The strategic management process means defining the organization’s strategy. It is also
defined as the process by which managers make a choice of a set of strategies for the
organization that will enable it to achieve better performance.

Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of


collecting, scrutinizing and providing information for strategic purposes

It helps in analyzing the internal and external factors influencing an organization.

After executing the environmental analysis process, management should


evaluate it on a continuous basis and strive to improve it.

2.Strategy Formulation- Strategy formulation is the process of deciding best


course of action for accomplishing organizational objectives and hence achieving
organizational purpose.

After conducting environment scanning, managers formulate corporate, business


and functional strategies.

3.Strategy Implementation- Strategy implementation implies making the


strategy work as intended or putting the organization’s chosen strategy into
action.

Strategy implementation includes designing the organization’s structure,


distributing resources, developing decision making process, and managing
human resources.

4.Strategy Evaluation- Strategy evaluation is the final step of strategy


management process.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy