WHAT IS STRATEGIC MANAGEMENT?
In this post you are going to learn strategic management topics i have discussed are what is strategic management? strategic management processes types of strategic management advantages of strategic management and disadvantages of strategic management let’s read this post.
Strategic management can be defined as the process of planning monitoring analysis and assessment of all necessities that an. organization needs to meet its aims and objectives, strategic management is based on an organization clear understanding of its mission and vision for where it wants to be in the future and the purpose that will guide its actions the process requires a commitment to strategic planning which a subset of business management that involves an organization ability to set both short and long term goals.
Strategic planning also comprises the planning of strategic decisions activities and resources allocation needed to achieve those objectives, having a defined process for managing an organization strategies will help organizations make logical decisions and develop new goals quickly in order to keep pace with evolving technology market and business conditions, one of the major aspects of strategic management is to organize various functional areas of the organization effectively as well as to assure these functional areas harmonize and get together well.
1: STRATEGIC MANAGEMENT PROCESS
Strategic management processes in general the strategic management process typically includes five phases number one goal setting fixing short term goals is an excellent way to start as they act as a direct blueprint in accomplishing long term objectives separating roles and duties to people and term management should be carried out this basic stage the process, provides every member of the enterprise with a mission that motivates them in the long run.
2: GATHERING INFORMATION AND ANALYZING
Gathering information and analyzing, the data gathered from within the organization and the market help in developing a constructive plan that acts as a foundation for strategic management this method allows the company to recognize internal avoidances, that have been effecting the operations of the organization.
3: STRATEGY FORMING
Strategy forming in this step all the data and information collected are used to form a unique strategy that satisfies all the necessities and requirements. Based on the resources available the business has to control the asset purchase and recruitment of experts identifying the capability of resources becomes important in strategic management.
4: IMPLEMENT THE STRATEGY
Implement the strategy if the planning is the one side of the coin then implementation those plans is another side of the coin, in this stage the employees involved in this process should have a clear idea of the plan and organizational goals to be implemented with perfection.
5: MONITORING
Monitoring, the monitoring stage involves analyzing managing tracking and evaluating every step that is associated with the strategic management plan by this time, you can compare the desired outcomes with the current outcome here you can do certain adjustments and new planning if required, now come to the types of strategic management. The strategic management concept can be implemented in various ways here two of the important strategies.
1; Swot analysis this analysis allows you to inspect internal and external factors, internal factors are basically the strength and weakness that are present in your organization, external factors are basically the positive and the negative factors which are opportunities and threats respectively that present outside of your organization, the swot method helps leaders decide whether the organization resources and abilities will be useful in the competitive environment and to improve the strategies to remain successful in this environment.
Balanced scorecard, balanced scorecard age you find which facets of your business require improvements by breaking down the performance evaluation method into four areas known as as legs, these areas are learning and growth business processes customer perspectives and financial data this method can generate timely reporting mechanisms that show all statistics associated with the growth of the company.
Advantages of the strategic management
1: discharges board responsibility the first and the most important reason behind having strategic management is that it discharges the responsibility of the board of directors.
2: provides a framework for decision making, the strategy gives a framework in which all staff can make day to day operational decisions and ensure that those decisions are all moving the organization in a single direction.
3: Enables measurement progress strategic management allows an organization to measure its success in the setting of measures of success the organization first decides what is crucial to its ongoing success and then forces the establishment of objectives and holds these crucial measures in front of the board of directors and senior management.
4: Provides organizational perspective strategic management takes an organization view and looks at all the components and the interrelationships between those components in order to produce a strategy, that js excellent for the entire organization and not a single component.
